Preliminary Consultation on a Dedicated SME Sub- Fund and Policy Support Facility

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Annabella Baldwin
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1 015/SMEWG0/018 Agenda Item: 1 Preliminary Consultation on a Dedicated SME Sub- Fund and Policy Support Facility Purpose: Information Submitted by: Canada 0 th Small and Medium Enterprises Working Group Meeting Atlanta, United States June 015

Information Submitted by: Canada 0 th Small and Medium

2 June 015 Agenda Item #1 Preliminary Consultation on a Dedicated SME Sub-fund and Policy Support Facility Enhanced Canadian Engagement in APEC Foreign Policy Considerations DFATD Sustainable Economic Growth Strategy prioritizes support for micro, small and medium-sized private sector businesses, particularly those owned by women, and integration into regional and global markets as part of the Government of Canada s international development / poverty reduction agenda; Global Markets Action Plan sharpens Canada s trade policy toolkit and is designed to promote business-to-business links with partners globally links that are so often precursors to new ideas; APEC plays host to four of Canada s development partner economies Indonesia, the Philippines, Vietnam and Peru; As the host of APEC in 015, the Philippines is prioritizing inclusive economic growth, with a strong emphasis on SMEs, especially those led by women, and with greater inclusion of micro-enterprises as part of a broader MSME environment. 1

Government of Canada s international development / poverty reduction agenda; Global Markets Action Plan sharpens Canada s trade policy toolkit and is designed to promote business-to-business links

3 Enhanced Canadian Engagement in APEC Key Considerations APEC can be supported with Official Development Assistance (ODA) funds through the APEC Support Fund, which is available only for capacity-building projects that primarily benefit and engage developing member economies ; Based on consultations carried out in March 015, the APEC Secretariat would welcome Canadian support to further its core agenda of promoting sustainable economic growth and prosperity in the Asia-Pacific region, especially around SMEs and women in the economy; There is no dedicated funding facility (i.e. APEC sub-fund) for SME-related projects within APEC; funding for these projects competes for limited APEC General Fund resources, or requires self-financing from the proposing economy (which can limit the participation of developing economies); In reviewing SMEWG-supported projects between 009 and 01, there has been less emphasis on soft questions of human capital, employability and poverty reduction, as they relate to SMEs. APEC-Canada Growing Business Partnership: Notional Objectives Based on an analysis of the gaps and the priorities of APEC, the SMEWG, the Philippines (APEC host economy for 015) and DFATD, Canada is tentatively exploring a new ODA-funded partnership between DFATD, APEC and the SMEWG designed to advance SME growth and poverty reduction agendas within the broader APEC region. The proposed APEC-Canada Growing Business Partnership, would be designed to: Increase direct support for SMEs and support organizations in developing APEC economies on priority SMEWG issues, including management capability, entrepreneurship, innovation, financing, enabling environment, market access and internationalization (via new dedicated SME sub-fund); Strengthen the focus of APEC SME projects on questions of employability, human capital development, gender equality and poverty reduction in developing APEC economies (via new dedicated SME sub-fund); Enhance Canada s policy and research leadership on SMEs and their povertyreduction potentials (via Canadian research / policy partner).

further its core agenda of promoting sustainable economic growth and prosperity in the Asia-Pacific region, especially around SMEs and women in the economy; There is no dedicated funding facility (i.

4 APEC-Canada Growing Business Partnership: Notional Activities APEC-branded workshops, trainings and conferences directly targeting SMEs and / or service providers, to be developed and implemented on a responsive basis by developing APEC economies; APEC-branded policy dialogues focusing on barriers to business growth, with a particular focus on questions of access to finance, talent and markets; Business-oriented research studies, including poverty reduction perspectives, overseen by the SMEWG, and for the benefit of all APEC economies; Targeted, demand-based support to the APEC Secretariat on project management, gender equality and / or poverty reduction. 5 5 Alignment with SMEWG Strategic Plan 6 The proposed APEC-Canada Growing Business Partnership would also seek to address the following three priorities of the SMEWG: Encouraging more direct participation of SMEs in APEC projects, and paying special attention to youth, women and minorities within the SME context; Strengthening connections with the APEC Business Advisory Council (ABAC) and deepen the Council s engagement in SMEWG projects; Increasing the focus on longer-term results, including the engagement of SME service organizations in the optimization of SME support services. The Philippines, as the host economy for APEC in 015 has identified further priority gaps in keeping with their priority of inclusive growth, largely focusing on helping SMEs to access trade facilitation measures. 6

Business-oriented research studies, including poverty reduction perspectives, overseen by the SMEWG, and for the benefit of all APEC economies; Targeted, demand-based support to the APEC Secretariat

5 Questions for SMEWG Discussion 7 Is an employability, human capital development, gender equality and poverty reduction angle feasible within the mandate of the SMEWG? Would developing APEC economies be willing to propose projects along the lines discussed? Are there other areas of emphasis that should be explored, within a poverty reduction context? How can APEC support the widest possible direct engagement of SMEs? What would be some of the key policy / research / analysis areas that could be explored? Are other economies interested in voluntary contributions along these lines? Could the Policy Partnership for Women in the Economy (PPWE) be engaged? 7 Further Information 8 Nathan L. Taylor Senior Development Officer Department of Foreign Affairs, Trade and Development 15 Sussex Drive Ottawa, CANADA Telephone: Nathan.Taylor@international.gc.ca 8

How can APEC support the widest possible direct engagement of SMEs? What would be some of the key policy / research / analysis areas that could be explored?

APEC SMALL AND MEDIUM ENTERPRISE WORKING GROUP (SMEWG) STRATEGIC PLAN 2009-2012

1 APEC SMALL AND MEDIUM ENTERPRISE WORKING GROUP (SMEWG) STRATEGIC PLAN 2009-2012 I. Introduction The SMEWG Strategic Plan has been developed to provide focus for the work of the SMEWG from 2009 until