Rapporteur Report
Plenary Session 5
1.0 Title of Discussion
Fostering SMEs
Sustainable Integration Into Global Markets
2.0 Presenter
Mr. Osorio Mauricio
(
3.0 Chairperson/Moderator
Hj
Abdul Rahman Hj Chuchu
4.0 Rapporteurs
4.1 Shahrin Hj Mohd Tamit
4.2 Siti Rozana DP Hj Mohd
Yunos
5.0 Presentation and Discussion
5.1 Abstract/Overview
The process of globalization has
pressured the competitive and comparative advantages of SMEs to compete within
their internal and external
markets. A key feature in promoting SMEs is once again the government. This
paper highlights the Peruvian Commission for the Promotion of Small and Micro
Enterprises’ (PROMPYME) experience in promoting SMEs. The basis of PROMPYME’s approach emphasizes on ‘wealth creation’ and is
supported by a clustering development programme. The market led approach involves the use of
horizontal and vertical networking. At the same time, the integration process
also emphasizes on the opportunities attainable in the global markets.
5.2 Main points and
Issues discussed
5.2.1 The government’s role in promoting
strategies for SMEs.
5.2.2 Horizontal networking: In essence
these strategies promotes the idea of networking system to get the benefits of
(1) market-sharing and resource pooling; (2) forming alliances with all stakeholders
that result in greater bargaining power; (3) encouraging product
standardization; (4) implementing quality monitoring processes and the design
of common market plans; and(5) rapid learning procedures and productive
upgrading schemes.
5.2.3 Vertical Networking: (1) To
promote SMEs with an ‘outward-oriented’ strategy by promoting subcontracting
relationships with medium and large scale exporting companies that need to
expand their trading capacities and to benefit from any major trade agreement;
(2) To promote SMEs with an outward-oriented strategy simply by facilitating
linkages with export-oriented MNCs.
5.2.4 Access to Government Procurement
Information in which SMEs can participate and that PROMPYME is in charge of:
(1) providing SMEs with information about government entities’ demands; (2)
ensuring transparency in procurement processes; (3) developing programmes to improve SME’s
production quality towards satisfying the public market requirements
7.0 Question and Answer Session
7.1 Q: What is the risk of relying on
A: In
7.2 Q: How have SMEs contributed
towards poverty alleviation or improve the standard of living? What about the
non-government organizations in certain countries in terms of building
capacities etc? (
A: In terms of poverty
alleviation,