Boosting Small Businesses: Digitalization, Finance, and Standards in the Global Market

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Digitalization Benefits and Solutions for Small Businesses

The Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) discussed the advantages of digitalization for small businesses on 26 April. Singapore shared its experiences with digital trade facilitation through its digital economy agreements, which include the adoption of the UNCITRAL Model Laws on E-commerce and Electronic Transferable Records. The United Kingdom also drew attention to its proposal on trade digitalization under the e-commerce negotiations, emphasizing the economic benefits of paperless trade, such as cost reduction, increased productivity, and expanded business opportunities.

References:

  1. UNCITRAL Model Law on Electronic Commerce (1996) [1].
  2. UNCITRAL Model Law on Electronic Transferable Records (2017) [2].

Intellectual Property Rights and Access to Finance for MSMEs

The World Intellectual Property Organization (WIPO) presented its latest report on intangible assets and the value generated when small businesses’ inventions are protected by IP rights. The protection of intellectual property rights can help bridge the finance gap faced by many small businesses. The report, titled “WIPO and Intangible Asset Finance: Moving intangible asset finance from the margins to the mainstream,” is available for further review.

  1. WIPO (2023). WIPO and Intangible Asset Finance: Moving intangible asset finance from the margins to the mainstream. World Intellectual Property Organization [3].

Tackling Sustainability Standards and Challenges for MSMEs

The International Trade Centre (ITC) showcased its Standards Map, a database of sustainability standards, and discussed the technical and financial constraints experienced by small businesses as they strive to comply with these standards. The ITC also updated the group on the G20’s work concerning MSMEs’ access to information, finance, and markets.

  1. ITC Standards Map [4].
  2. G20 Osaka Leaders’ Declaration (2019) [5].

New Coordinator and Achievements of the MSME Group

The MSME Group appointed Ambassador Matthew Wilson of Barbados as its new coordinator, succeeding Ambassador José Luís Cancela of Uruguay. Cancela highlighted the achievements of the group, including the 2020 package of recommendations aimed at assisting small businesses in international trade. He also mentioned the establishment of databases of MSME provisions in trade agreements and trade policy reviews and the Trade4MSMEs platform, which serves as a gateway to MSME trade information.

  1. 2020 package of recommendations for MSMEs in international trade [6].
  2. Trade4MSMEs platform [7].

Engaging Small Businesses in Policy Development

In a meeting on the sidelines, the MSME Group met with representatives from small businesses to brief them on the group’s work, including the recently agreed Work Program and upcoming events leading up to MSMEs Day on 27 June. The representatives emphasized the importance of involving small businesses in the development of new regulations and stressed the need to share information and harmonize standards.

  1. World MSME Day (27 June) [8].

Strengthening Global Trade through Empowering MSMEs

The Informal Working Group on MSMEs continues to explore new avenues for supporting small businesses in international trade. By focusing on digitalization, finance, and sustainability standards, the group aims to empower MSMEs and strengthen their presence in the global market.

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