Transcript management

Service. Minding. Esteem. Awareness
The Development of SMEs in Taiwan
Small and Medium Enterprise Administration
Ministry of Economic Affairs
R.O.C. (Taiwan)
1
Outline
I.
Foreword
II. Overview of Taiwan’s Economic
and SME Development
III. Globalization and SMEs
IV. Strategies and Measures to Promote
SMEs’ Growth
V. Conclusions
I. Foreword
1. SMEs’ Contribution to Economic Society
1) Playing a key role in industry structure to link
up- and down-stream industries.
2) Developing foreign trade, creating foreign
exchange and employment opportunities.
3) Providing remarkable contributions to building
up a middle-class in society.
4) Continuously supporting economic
development and stabilizing society.
2. Problems faced by SMEs
Globalization, Technology Revolution, Fierce Competition
• Difficulty in obtaining
financing
• Lack of R&D energy
• Difficulty in upgrade
and transformation
• Insufficient marketing
abilities
• New generation
business startup
needs motivation.
• Localized enterprises
need revitalized
development.
 The small scale of the individual
businesses makes them relatively weak;
therefore, they need assistance to
upgrade the standard of management
and competitiveness.
 Promote formation of a labor-division
system to link with large corporations
and develop towards a high valueadded supply chain.
Foster new SMEs to fill in the gap
created by industrial migration
Balance regional development, and
minimize the gap in urban-rural
development
II. Overview of Taiwan’s Economic and
SME Development
1. About Taiwan
Area: 36,191 sq. km
Population: 23.14 million
GDP Per Capita Income: US$19,731*
Foreign Trade（goods）:
World’s 17th largest trading nation*
Number of Enterprises: 1.28 million*
Number of SMEs: 1.25 million*
Ratio of SMEs to All Enterprises: 97.68%*
*Statistics in 2010
2. Economic Development Stages
1950
1960
Labor
Intensive
Industry
1970
Light
Industry
1980
Heavy
Industry
1990
Strategic
Industry
Joined WTO
Jan 2002
2011
2000
Hi-Tech
Industry
Creative
R&D
Industry
(1)
1950-2000 Economic Growth Rate (GDP%):
(2)
2002 Economic Growth Rate (GDP%):
5.26%
2003 Economic Growth Rate (GDP%):
3.67%
2004 Economic Growth Rate (GDP%):
6.19%
2005 Economic Growth Rate (GDP%):
4.70%
2006 Economic Growth Rate (GDP%):
5.44%
2007 Economic Growth Rate (GDP%):
5.98%
2008 Economic Growth Rate (GDP%):
0.73%
2009 Economic Growth Rate (GDP%):
-1.93%
2010 Economic Growth Rate (GDP%):
10.88%
2011 Economic Growth Rate (GDP%, Forecast): 4.81%
(3)
2010 GDP structure :
Service Sector
Industrial Sector
Agriculture Sector
8.1 % (Average)
67.5%
31.1%
1.4%
Source: Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C.
3. Criteria for Identifying SMEs
SECTORS
SMEs
Manufacturing,
Construction,
Mining,
Quarrying
Capital < US$2.3 Million
or
Commerce,
Service
Employees < 200 persons
Preceding year revenue <
US$2.9Million
or
Employees< 100 persons
Micro
Business
Employees
<5
persons
4. The Current Status of Taiwan SMEs
All enterprises
SMEs
% of SMEs
1,277,585
1,247,998
97.68
Total employments
(thousand persons)
10,493
8,191
78.06
No. of employees
(thousand persons)
8,104
5,805
71.63
Total Sales (NT$ million)
(US$ million)
36,239,637
(1,146,823)
10,709,005
(338,892)
29.55
Domestic Sales (NT$ million)
(US$ million)
26,216,138
(829,624)
9,088,972
(287,625)
34.67
Export Sales (NT$ million)
(US$ million)
10,023,499
(317,199)
1,620,033
(51,266)
16.16
No. of enterprises
** 1 USD = 31.6 NTD
Source: White Paper on SMEs in Taiwan, 2010.
5. Policies for Fostering SMEs and Start-ups
(1) Philosophy – Service, Minding, Esteem, Awareness
Top SMEs,
Incorporation
Co., 1~3%
Award Strategy
1. National Award
2. Rising Star Award
3. R&D Award
mechanism for supporting
Middle
entrepreneurial activity &
Layer of SMEs,
innovation
Limited Co.,
Guidance Strategy
11 Guidance Systems
Start-up SMEs
Enterprises
27~34%
Grouping Strategy
1. Mutual Cooperation
2. Industry Cluster
3. Local Featured Industry
4. Financing Programs
Foundation of SMEs
65~70%
(2) Eleven Guidance Programs to Assist SMEs
•
Finance and Credit
• Management
• Production Technology
• Research &
Development
• Information
Management
• Industrial Safety
• Pollution Control
• Marketing
• Mutual Support &
Cooperation
• Quality
Enhancement
• Business Startup &
Incubation
(3) Developing Strategies and Targets of SMEs
Create Sound
Developing Environment
of SMEs
Set up A Platform
of Entrepreneurship
and Incubation
for SMEs
Entrepreneur Park
for the Growth
and Development
of SMEs
Implementation of
Financing Support
Mechanism for SMEs
Enhance the
Application Ability
of Information
Technology
of SMEs
Strengthen the
Guidance Function
of Management
for SMEs
Ⅲ. Globalization and SMEs
1.Characterization of Globalization Era for SMEs
 Knowledge based Economy (KBE)
 E-Age (Networking and String Interaction)
 “Globalized” Market
 New Technological Impact, e.g. Nanotechnolgoy
(It offers an opportunity for the “latter comer
reshuffle.)
“Dynamic” Characteristic
and
“Time-based”
Innovation Strategies
2.Challenge and Strategy under Globalization
Knowledge
Digital Era
Strategy
2︰
How to achieve
clarity earlier?
When opportunity
remains substantial
and attractive
Knowledge
Management
$
Knowledge-based Economy Market
Processing
(management)
Speed
Globalization
Innovation(platform)
Time-based innovation strategies
Strategy 3：
Comprehensive methodology for
commercialization of Hi-tech should be developed
Identify the core tech’s of the firm
Capability to Integrate & Fuse of tech’s
Built-up a tech’s platform for products
New service demand/New business model
Skill substitute/Product substitute
New Technological Impact
Strategy1︰
Shorten the time to
market of new
product and even
make profit earlier
•Intensification of
information
Ⅳ.Strategies and Measures to Promote SMEs’ Growth
1. Fostering Entrepreneurship
Entrepreneurial Consulting Service
7,000 inquiries per year
Entrepreneurial Learning Center
900 trainees per year
Entrepreneurial Dream Lab
500 instances per year
Business Start-up Award
12 start-ups
Results
Achieved
(2004 –
2010.05)
Knowledge Bank
•FAQ
•Consulting database
•e-newsletters
•Teaching manuals
•On-line learning materials
•Lectures/workshops/conferences
•Case studies/best practices
•Model start-ups
•Follow-up studies
•Periodicals/academic researches
•GEM Taiwan
•ICSB-R.O.C. (Taiwan)
•Entrepreneurial consulting service provided on 54,019 occasions
•Cultivation of 14,532 start-up managers
•Cultivation of 1,549 new enterprises
•Creation of 8,763 new jobs
•Stimulating NT$7,743 million in new investment
2. Business Innovation and Incubation
- Function of Incubators
•
To reduce risks and expenses of investment and
increase successful rate of start-up enterprises.
• To foster new products, new business-model and new
technology.
• To provide guidance in commercializing R&D
achievements.
•
To provide a location for cooperation of academics
and industries.
•
To provide testing services and speed up the
development of products.
• To provide training courses, information and consultation.
Promotional Methods
•Develop with features
•Incubate with networks
•Cultivate with innovation
International
Incubation
Network
International
outreach
•Incubation SOPs
•Total solution
services
•In-depth
business
diagnostics and
guidance
•Industry-specific
incubation
networks
alliance
Functionspecific
Incubation
Network
•Cultivate Taiwanese-invested
enterprises in overseas markets
•Encourage foreign companies to
Taiwanese incubation centers
•Build ties with “twin” incubation
centers in other countries
•Establish incubation centers
overseas
Industryspecific
Incubation
Network
•ICT application industry
•Bio medical care industry
•Green energy industry
•Cultural and creative
industry
Alliances synergy
Specialization-Niches-Integration
(122 incubation centers in Taiwan)
Meets SMEs’ needs
•Women enterprise
•Micro-enterprise
•Local culture industry
•Tourism & Leisure
Case : YAOX Edutainment Co., Ltd.
Company Establishment and Operational Status
• Founded in July 1994, started to locate in
Nankang Software Incubator in March 2002 and
moved to Nankang Software Park in January
2009.
• Initial capital NTD 82M, Revenue reached NTD
1.6M in 2003 and grew substantially afterwards;
reached NTD 100M in 2008 and NTD 200M in
2009.
Main Products and Services
• 3D/4D animation films, 3D/4D theater equipment
development, VR/AR software production, VR
simulator development, theme pavilion/ theater
and VR experience zone turnkey project
management
3. Enhancing Business Management Guiding Function
Local Cultural Industry
Industry
Type
(1) Definition:
the term “local” pertained largely to a
village, township, or municipality, while
“cultural industries” refer to some
particular local industries of historical,
cultural, distinctive or unique qualities.
Cases Distribution (1989-2009)
North
Central
South
East
Island
Tota
l
Handicraft
6
18
3
3
1
31
Specialties
8
14
9
5
2
38
Rural
Leisure
16
21
3
9
2
51
Total
30
53
15
17
5
120
North
19%
59%
馬祖群島
22%
離島分佈情形
Island
連江縣
基隆
台北
桃園縣
Central
台北縣
新竹
新竹縣
24%
金門縣
宜蘭縣
苗栗縣
42%
台中縣
台中
花蓮
彰化縣
34%
25%
南投縣
50%
25%
花蓮縣
雲林縣
嘉義
嘉義縣
South
58%
East
台南縣
台南
台東縣
25%
台東
21%
高雄
澎湖群島
21%
高雄縣
屏東縣
綠島
Rural Leisure
蘭嶼
Handicraft
Specialties
19%
56%
(2) One Town One Product
OTOP
International Guidance
Utilize local resources and allocate
manpower to stimulate creativity and
develop new products and services.
International
Focal Point
•International Exhibition
•Guidance on the Brand Design
•Participating in the OTOP International
Seminar
Product Marketing and
Promoting
•Common Marketing Channel
•Common Media Exposure
•OTOP Brand Management
Taiwan Local Focal Point
Enhancing Counseling
Program
•Marketing
•Features Building
•Organizational Operation
•Talent Cultivation
•Taiwan Local Industry Product Shop
(ex: Taipei 101 Mall store)
•OTOP Local Industry Website
16 Counseling Programs in 2009
Counseling Local
Cases
Indigenous handicraft industry in
Sandimen Village, Pintung County &
Creative Ceramic in Yingge, Taipei
County& Seaweed industry in Keelung
City, etc.
Public Sector
Private Sector
Government
Local SMEs
Role
Role
Lifeblood of
National Economy
an Invisible Hand
Function
Budget Offer
Policy Support
1.
Government
2.
Local
SMEs
Consulting
Organization
Function
To raise employment
To increase GNP
To improve life quality
3.
Role
Function
Golden Triangle
Technical Advisor
Coordinator
Pushing Hands
Consulting Organization
20
Case : The indigenous handicraft industry in
Sandimen Village, Pintung County
Developmental consulting process (a 3-year, 3-phase program)
STEP 1
To instill industry
confidence
1. Exhibiting and
marketing its
handicrafts in Taipei
2. Promotion through
a tour handbook
that helps to attract
visitors
STEP2
Internal
infrastructure
development
1. Culminating
business
management
talents
2. Creating product
value, improving
the workshops
STEP3
Instilling the
overall image
1. Coordinating
production and
marketing
2. holding arts and
handicraft
exhibition activities
4.The Guidance on Upgrade and Transform
Upgrade and Transform
•SME Supply Chain
Management Integration Project
•Industry-Specific e-Commerce
Project
•SME e-Business Service
•Knowledge Promotion
LV
Innovation
Integration
Leverage Value
Counseling
on
e-Business
•Technology Innovation
•Technology Application
•Innovative Operation
Building
Distinguished
Enterprises
and
Quality Management
e-Application
•E-Enablement
Diagnostic/Guidance
•Bridging the Digital
Divide
•Cooperation
Operation e-Network
Service
Building
e-Infrastructure
electronic
Enhancing
Quality
Infrastructure
Qualitative
•Quality Benchmark
•International Linkage
•Business Opportunity
• Quality Management System
• Quality Management Talent
• International Knowledge
5. Enhancing SMEs Information Technology
Online Sales
e-Operation
e-Commerce
Industry-Specific e-Commerce Project
Knowledge Management
Promotion Project
SME e-Business Service Project
Bridging the Digital Divide of the SME Project
SME e-Learning Project
Talent Cultivation
SME e-Enablement Talent Cultivation Project
Information
Portal
Corporation Operation e-Network Service Project
Micro Business
Small Business
Medium Business
(Below 5 employees) (Below 20 employees )
(Below 200 employees )
•The Guidance Service that’s Always By Your Side, Lifting SME e-Dream off the Ground
•Provide e-Business Enabling of Independent Enterprise, Clusters, and Industries.
e-Infrastructure
Communication
& Network
e-Application
Diagnostic Service
Knowledge
Management
SME Supply Chain Management
Integration Project
e-Commerce
Supply Chain
Management
The Barriers of Digitization for SMEs
For Small Business Owners
 Lack of knowledge about ICT and e-business
 Minimum skills on ICT
For Small Business Companies
 Incapability of handling the complexity of ICT
 Lack of technical people
 Inefficient business flows
For ICT Service Providers
 Beyond reach of city-based service providers
 Offer mean margin from small businesses
Strategies of Deploying ICT to SMEs
Supply Side
Select Deployment Teams
Select 11 corporate and
association teams covers entire
Taiwan.
Source Ready-to-Use Solutions
Source for small-business only
solutions.
Mobilize Community
Involvement
Leverage with associations,
universities, and local volunteer
groups.
Demand Side
Select Digital Divide Zones
Classify 3 zones among 369
small administrative
districts according to
divide statuses.
Foster e-Communities
Organize e-Communities to
facilitate collective learning.
Learn to Earn
Promote successful ebusiness models for small
business.
Key Success Factors
The divide distribution by industry
 Divide distribution by region
 The resource & capability of divide SME

Demand

Supply



Execution



Effectively provide services covering responsible divide zones
Provide inexpensive, diversified solutions and sustainable
services
Be motivated to achieve the goal and vision of the project
Demand quality for all Transactions
Make clear and fair rules and incentives
Enforce disciplines on conduct of businesses
Provide centralized marketing & information sharing
6. Service Network & Volunteer Organization
SMEA (MOEA)
SME Enterprise Service
Centers of local government
Northern, Central,
and Southern
Committees
Associations
Associations in 22 Counties
Enterprise Service Volunteers
 Currently, there are 22 County (City) SME Honorary Adviser (Enterprise Service Volunteer)
Associations, who regularly conduct meetings to share their experiences, participate in SME events,
and carry out site-visit services. They respond to the specific needs of the local industries and
penetrate deep into the local industrial communities to provide diversified services, assist them to
solve problems, and accompany them in the journey to sustainable growth.
Regional Committees
 To effectively consolidate regional resources and promote inter-county interactivity, the
northern, central, and southern Taiwan committees were established, aiming to coagulate the
services energies of the local Enterprise Service Volunteer Associations for the development of
local industries and economy.
5
7. Business Matching and Promotion
Enhancing
the product/
technology
exposure
opportunity
Assisting to
develop
the product
marketing
circuit
Demand Side
1.VC & Angel
2.Enterprises
who seek to
upgrade
3.Commercial
agent
Matching
Train
Accelerating
technology
commerciali
zation
Strengthening
network
marketing
ability
Presentation
New Techniques/Products
Exhibition
New Techniques/Products
Arrange Business Discussion &
Promotion
New Product
Exhibition
Technomart and
Cooperation
Enhancing more
successful case
and much
amount
Supply Side
1.Enteprises
who own new
techniques
2.Enteprises
who own new
products
Web
Demonstration and
E-commerce
V. Conclusions
The Necessity of Resource Integration
It is necessary to integrate resources among different government
departments to maximize efficiency on promoting SMEs’ growth.
The emergence of e-commerce shortens and fastens
communication and strengthens interactions among different
business units, which make a local service and partnership system
able to function.
The Role of Local Government
To develop and implement effective plans of SMEs’ growth,
local governments should play an important role, especially
on the assistance of local industry to build service network
and collaborative relationship with local communities and
associations.
Key success factors of SMEs
Innovation, Speed, Value and Entrepreneurship
Taiwan is a good example to learn the best practices in
business startup, innovation, incubation, capacity-building,
and new approaches for SME policies and instruments
Innovative Regulatory Environment
To build a favourable infrastructure for SMEs growth,
governments should assist in improving regulatory
framework, foster human resources, reform education
system, release the R&D energy through deregulation.
Thank you for your attention!
For more information, please visit
http://www.moeasmea.gov.tw