Transcript RCI - HC - Eastern Partnership Civil Society Forum

SME Policy Assessment
in the EaP Region
Presentation to Civil Society Forum
Michaela Hauf, DG ENTR,
Unit for International Affairs and Missions for Growth
Brussels, 13th May 2013
The Eastern Partner region is composed of a group of heterogeneous
countries
The Eastern Partner countries are different in terms of their size, population, resources
endowment and their stage of economic and institutional development
Value added of main economic sectors
as % of GDP, 2011
Example:
Economic structure of EaP countries
Armenia, Georgia, Republic of
Moldova are small economies, highly
dependent on services, agriculture and
remittances
Azerbaijan, Belarus, Ukraine are
resource-rich economies with
significant revenues from export of
commodities
Sources: World Bank, World Development Indicators
OECD Private Sector Development
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SMEs in the Eastern Partner countries contribute less to employment
and GDP compared to the OECD countries on average
Contribution of SMEs to employment and GDP, 2010
100%
Private sector share in GDP, 2010
90%
90%
80%
80%
75%
75%
75%
70%
70%
Share in GDP
100%
OECD
countries
Ukraine*
60%
50%
60%
60%
50%
Armenia
40%
Republic of
Moldova
40%
30%
30%
30%
Belarus
Georgia
20%
10%
65%
20%
10%
Azerbaijan
0%
0%
0%
20%
40%
60%
Share in employment
80%
100%
Sources: OECD (2012 ), SME Policy Index: Eastern Partner Countries 2012
* Share in turnover is used instead of GDP
Armenia Azerbaijan Belarus
Georgia
Republic
of
Moldova
Ukraine
Source: EBRD
SMEs today account on average for only about 50% of employment , compared to 60-70% in OECD
economies, and contribute on average just over 30% of value added, in comparison to 55% in OECD
economies
OECD Private Sector Development
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SME Policy Index 2012: Eastern Partner Countries
Assesses SME policies in each EaP country and formulates recommendations
Armenia – Azerbaijan – Belarus – Georgia - Republic of Moldova - Ukraine
REGIONAL
PROJECT
2009
2010
2011
2012
2013
2014
2015
Eastern Partnership Enterprise
Policy Performance Assessment –
Phase I – 21 months
KEY QUESTIONS
DELIVERABLES
•
How to enhance the performance
of SMEs in the Eastern Partnership
region?
 Development of a comprehensive
policy assessment tool to assess SME
policy frameworks
•
How to create an enabling policy
environment to support SME
growth?
 Recommendations on how to align
with the principles of the Small
Business Act
•
Which policy tools have or have
not worked to support SMEs?
 Exchange of best practices through
regional policy working groups and
capacity building seminars
OECD Private Sector Development
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SME Policy Index 2012: Eastern Partner Countries
... follows the principles of the Small Business Act for Europe
SME Policy Index:
Eastern Partner Countries 2012
1.
Entrepreneurial learning and women’s
entrepreneurship
Bankruptcy and second chance for SMEs
3.
Regulatory framework for SME policy
making
4.
Operational environment for SMEs
5.
SME support services and public
procurement
Access to finance for SMEs
7.
Standards and technical standards
8.
Enterprise skills and innovation policy for
SMEs
9.
SMEs in a green economy
6.1
Sources of external finance for SMEs
6.2
Legal and regulatory framework
Sub-dimensions
Indicators
5.3 Sources of external finance
ACAAs for SMEs
6.1
6.1.1
Credit guarantee schemes
Indicators
Level of Reform
1
2
3
4
5
Credit guarantee schemes
Indicators
6.
Sub-dimensions
Access to finance for SMEs
Indicators
2.
6
Sub-Dimensions
Covering priority dimensions related
to the Small Business Act for Europe:
Dimensions
Public start-up funding
Business angels network
10. Internationalisation of SMEs
OECD Private Sector Development
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SME Policy Index 2012: Eastern Partner Countries
... and is based on a participatory process with all SME stakeholders involved
Regional Policy
Working Group
9
10
11
2010
12
1
2
3
4
5
6
7
Six national
stakeholder meetings
Capacity Building
Seminar
Regional Policy
Working Group
Policy Seminar
8
9
10
11
12
1
2
3
4
2011
Independent
consultant
5
6
7
8
9
10
2012
Ministries
Agencies
Private sector
associations
Regional Policy
Working Group
Policy Seminar
Government
assessment
International
organisations
assessment
Public
authorities
European
Commission
ETF
EBRD
OECD
OECD Private Sector Development
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Key findings of the SME Policy Index 2012
SBA assessment results at regional level
1. Entrepreneurial learning and
women's entrepreneurship
5
2. Bankruptcy and second
10. Internationalisation of SMEs
chance for SMEs
4
9. SMEs in a green economy
3
2
3. Regulatory framework for
SME policy making
1
8B. Innovation
8A. Enterprise skills
0
4. Operational environment for
SMEs
5A. Support services for SMEs
and start-ups
7. Standards and technical
5B. Public procurement
regulations
6. Access to finance for SMEs
Most EaP countries have started to implement business climate reforms to create a conducive environment for
private sector development;
However they still face significant challenges in developing a comprehensive approach towards the SME sector to
complement these efforts with more targeted measures.
OECD Private Sector Development
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Key findings of the SME Policy Index
Key conclusions
EaP countries are supporting SMEs and entrepreneurship
through business environment reforms;
Institutional frameworks for SME policy are developing at
different paces in EaP countries;
More targeted SME policy tools are still needed to further
support SME growth across the region;
Data on SMEs remains scarce across the EaP region.
OECD Private Sector Development
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EaP countries are supporting SMEs and entrepreneurship
through business environment reforms
All Eastern Partner countries:
... are taking a pro-active approach to streamline the operational environment for business activities
(company registration, online government etc.)
... have undergone reforms in legislative simplification, although some countries are more advanced
than others.
... have started to improve the legal and regulatory framework to expand the financial sector
beyond bank lending, however, with mixed results
Example: sub-dimension 4.1 Company registration
•
Eastern Partner countries have achieved significant progress in
the area of company registration, saving time, reducing costs and
removing administrative barriers for SMEs.
Weighted average score for sub-dimension 4.1:
Company registration
5
4.5
4
3.89
4.13
3.98
4.23
3.63
3.74
3.5
3
•
All Eastern Partner countries have introduced one-stop-shops for 2.5
company registration. Georgia and Belarus have managed to
2
integrate all registration and notification procedures within one- 1.5
stop-shops, while Georgia has introduced Public Service Halls,
1
integrating one-stop-shops with a range of other government
0.5
services.
0
Armenia Azerbaijan
Belarus
Georgia Republic of Ukraine
Moldova
OECD Private Sector Development
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Institutional frameworks for SME policy are developing at
different paces in EaP countries
• Armenia, Georgia and the Republic of Moldova have
started to develop the institutional framework through
on-going public-private consultations and effective policy
co-ordination mechanisms;
•Azerbaijan, Belarus and Ukraine have started to provide
support measures to the business sector, but often in an
ad hoc manner without a long-term plan and with limited
co-ordination between the relevant public authorities.
Weighted average score for sub-dimension 3.1:
Institutional framework
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
3.43
3.25
2.61
2.25
2.07
2.00
Armenia Azerbaijan Belarus
Georgia
Republic
of
Moldova
Ukraine
Example: sub-dimension 3.1
Institutional framework
... Armenia and the Republic of Moldova have
the building blocks for and SME policy
making;
... Georgia has achieved noticeable results
following a horizontal approach to business
climate development.
... in Azerbaijan a number of implementation
agencies exist with a focus on different areas;
however co-ordination between these actors
could be further improved to ensure a
common approach towards SME
development;
... in Belarus SME policy is developed at
ministry level, but no implementation agency
exists;
... in Ukraine an agency for SME policy was reestablished in 2012, but its effectiveness will
largely depend on mandate and financing.
OECD Private Sector Development
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More targeted SME policy tools are still needed to further
support SME growth across the region
•Availability of financial and human resources remains a particular constraint to SME performance in
all EaP countries.
•Support services for SMEs and start-ups are available across the EaP region as a combination of public
and donor-funded programmes
•Most EaP countries have agencies specialised in export promotion; however policies to support
export-oriented SMEs remain weak across the region.
•Innovation policies remain inadequate with considerable scope for further development of target
policies to encourage SME involvement in the innovation process.
Example: dimension 8b Innovation policy for SMEs
•
•
All Eastern Partner countries have established public research
institutions, or initiatives to promote technology transfer
Financial and technical support schemes for innovative
companies are provided on an ad-hoc basis in the Eastern
Partner region, often with support from donors and
international organisations.
Weighted average score for dimension 8B:
Innovation policy for SMEs
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2.83
1.91
1.79
2.13
2.37
1.29
Armenia Azerbaijan
Belarus
Georgia Republic of Ukraine
Moldova
OECD Private Sector Development
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Data on SMEs remains scarce across the EaP region
• Data on the SME sector remains scarce, even in those countries where policy formulation for SME
support is already well advanced.
•Despite the existence of specialised institutions, data on the SME sector is often incomplete or entirely
lacking.
Examples:
•While countries have made significant
progress in data collection, several
shortcomings remain:
•Weak international comparability
•Low accessibility and low level of
detail
•Limited availability online and lack of
regular updates
Indicator 3.2 – Availability of statistical data
The official data on SMEs in EaP countries is often incomplete or
fragmented, and covers only a limited number of sectors.
Score for dimension indicator 3.2:
Availability of statistical data
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
4.5
3
2.5
2
2
1.5
Armenia
Azerbaijan
Belarus
Georgia Republic of Ukraine
Moldova
Indicator 8a.4 – Start-ups
No EaP country has been able to provide sufficient statistical evidence
on the ratio of start-ups trained and/or those that received business
support services.
OECD Private Sector Development
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Key findings of the SME Policy Index 2012
Guidelines for implementing SME-friendly policies
While there is no one-size-fits-all solution for advancing SME policy development, all Eastern
Partner countries are invited to take advantage of the following guidelines to structure their own
policy reform agenda:
Consult more closely
with the private sector
on policy reform
Historically outside of the policy making process, the private sector in Eastern Partner
countries – especially SME associations – needs to be further integrated into the
policy debate at all stages to increase responsiveness of policies to the fast-moving
needs of the marketplace. Buy-in from the business community will also ensure more
effective implementation of reforms.
Improve co-ordination
between government
agencies
Better co-ordination between different agencies supporting SME development would
avoid overlap, ensure better use of resources and increase policy impact. This can be
achieved by designing comprehensive SME development strategies with clear and
measurable objectives.
Develop targeted SME
policy tools
Develop policy tools to foster SMEs growth, investment, innovation and export
capacity in key economic sectors such as agribusiness, information and
communications technology, tourism and construction. Such tools are especially critical
to improve access to finance, enterprise skills, innovation, business support services
and export promotion.
Collect better data for
better policies
Collect more detailed structural statistics to monitor and evaluate public policy tools on
a regular basis and assess SME performance both at national and sector level.
OECD Private Sector Development
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Follow-up to SME Policy Assessment
• 2 projects based on the SME Policy Assessment
to be undertaken by the OECD in cooperation
with the European Commission
o Assistance to EaP countries with regard to the
implementation of policy reforms (focus on
particular sectors) – to be launched at the end of
2013
o 2nd Round of SME Policy Assessment with a focus
on effective implementation and output
(methodology will be revised in line with 'lessons
learned') – to be launched early 2014
Institutional Framework and
Participation
 Apart from dedicated project meetings,
discussions on the implementation of SME
policies will take place within the framework of
the SME Panel of the Eastern Partnership
 Eastern Partnership countries will be closely
involved through their SBA Co-ordinators
 Active participation – also from business
representatives – is key to a successful and
productive project
For further information please contact:
Michaela Hauf
Policy Officer Eastern Partnership
[email protected]