Small Business and Trade in APEC

A REPORT HIGHLIGHTING THE CONTRIBUTION OF MEDIUM, SMALL AND MICRO ENTERPRISES TO THE ASIA PACIFIC REGION.

Over the last decade APEC economies have opened their markets achieving significant gains in exports and global growth. In line with this increasing economic integration is the growing recognition by governments in the region of the potential for greater participation by small business in international trade to contribute to income, employment and overall economic growth. Developing economies are especially seeing small businesses as potential instruments to alleviate poverty. This report highlights the fact that while gains have been achieved from reductions in tariffs, small business contribution to trade can be further improved by addressing other barriers to trade and investment. It also brings together six case studies of successful individual small and micro firms located in six APEC member economies, which have met the challenges of growth and accessing the international market. While the small businesses considered in this report have diverse backgrounds and characteristics, having operated in very different markets and economies, there are commonalities in their experiences and factors for success in growth and accessing overseas markets.

This report provides policy makers involved in the development of small business programs with some evidence on the many challenges and diverse conditions under which small business operates, particularly in the context of a competitive global market place. For small business operators there are factors to be aware of, and lessons to be learnt, from the experiences of others. This report has been prepared for the APEC Ministers Responsible for Trade Meeting in Puerto Vallarta, Mexico on 29-30 May 2002, and as a contribution to the deliberations of the High Level Meeting on Micro-Enterprises to be held in Mexico in July 2002.

The assistance of the Small Business Research Unit,Victoria University of Technology, Melbourne, is gratefully acknowledged. Information provided by Dr Chris Hall, PECC Expert Advisor on SME Issues, which significantly contributed to the weight of this report, is also very much appreciated.