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ADBI-ADB-CI workshop: Importance of SME in CAREC landlocked economy

Small and medium-sized enterprises (SMEs) are particularly important for countries in transition.


Devdiscourse news desk
Updated: 20-06-2018 11:29 IST
ADBI-ADB-CI workshop: Importance of SME in CAREC landlocked economy

Small and medium-sized enterprises (SMEs) are particularly important for countries in transition. (Image Credit: Twitter)

ADBI-ADB-CI workshop on Small and medium-sized enterprises (SMEs) will be held in Beijing, China tomorrow.

These enterprises in China helps to shift the focus from mass production to demand-driven and market-oriented economies. SMEs are considered as the backbone of economic activity in Asia and the Pacific. SMEs are very acute to sustain inclusive economic growth and social development. Out of 100% enterprise, more than 96% of the total enterprise in the region are SMEs and it holds about 42% of total GDP and employs 62% of the workforce.

SMEs in the Central Asia Regional Economic Cooperation (CAREC) countries, especially in the former Soviet Union states, face peculiar challenges where the private sector is still in the initial stage of development. Stronger SMEs can foster private enterprise, innovation, market development, employment, and economic diversification, and induce efficient allocation of scarce resources.

By joining global value chains, SMEs can contribute to development in the CAREC landlocked economies. SMEs, especially in agri-business in the CAREC region, can help diversify the production base, create jobs, reduce poverty, and ensure regional food security.

Linking regional agriculture value chains in sparsely populated cities and distant markets will not only improve market shares and cash flow projections but also offer better access to finance.

In Central Asian regional Economic Cooperation SMEs face odd challenges where the private sector is still in the initial stage of development. Stronger SMEs can nurture private enterprise. Connecting with global value chains, SMEs can contribute to development in the CAREC landlocked economies.

In CAREC region especially in agri-business can help diversify the production base, create jobs, reduce poverty, and ensure regional food security.

GOALS:

  1. In terms of their access to finance in view of the abovementioned constraints SMEs faces stocks of the challenges in the CAREC landlocked economies.
  2. Assess opportunities of SMEs to link with domestic and global value chains and the potential impact of this on their access to finance.
  3. Recommend policies to develop SMEs' access to finance and trade finance, especially in agri-business,
  4. SMEs with regard to the effective regulatory framework; access to finance (banks, capital markets, start-up finance and non-traditional micro-lending or community lending, risk capital);
  5. Transmit research management experience from ADBI to CAREC Institute (CI), by (i) demonstrating to CI ADBI's system for planning, implementing, monitoring, and evaluating research activities, including how its research management group is structured;

PARTICIPANTS:- 20 academics think-tank researchers, and students.

COUNTRY : China