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Box 2.3. EU SME Centre
In 2010, European Union established the EU SME Centre in Beijing, China, to support European
SMEs that want to export to, or invest in China. SMEs typically do not have sufficient capacity to
navigate in the complex Chinese administrative and legal system, in particular in the early stages of their
market entry. The Centre help SMEs find answers to their market information, technical standards,
human resources and basic legal questions. The services provided are the following:
 Business Development: provision of market information, business development and
marketing advice
 Legal: legal information, ‘ask the expert’ initial consultations and practical manuals
 Standards: standards and conformity requirements when exporting to China, search tool for
standard databases and guidelines on conformity assessment
 HR and Training: industry and horizontal training programme, database on available
training courses, advice on HR issues
 Access to a service providers directory and information databases
 Hot-desking: free, temporary office space in the EU SME Centre to explore local business
opportunities
 Any other practical, hands-on support services to EU SMEs wishing to export to or invest
in China and directing SMEs to other specialised service providers
Source:
2.5. Policy measures to reduce internal barriers
Internal barriers are associated with limitations in organisational resources/capabilities and in the firm
approach to internationalizing. They include (OECD, 2008, 2013):
i. Informational Barriers: problems in identifying, selecting, and linking to international markets
due to information inefficiencies.
ii. Human Resource Barriers: constraints in human resources and inefficiencies in their management
for internationalisation.
iii. Financial Barriers: lack or insufficiency of financial resources to undertake international
activities.
iv. Product and Price Barriers: pressures imposed by external forces on adapting the elements of the
company’s product and pricing strategy.
v. Distribution, Logistics and Promotion Barriers: barriers associated with the distribution, logistics
and promotion aspects in foreign markets.
2.5.1. Collection and supply of information
As outlined above, informational barriers are perceived to be severe obstacles to international activity by
both policy makers and SMEs themselves. In this area the actual complexity of the foreign business
environment and the obstacles that stems from foreign regulation, lack of transparency or predictability
combine with the internal constraints of SMEs. Consistently, the provision of information is a key
component of policy measures in all countries (see Table 2.1).
Academic research evidence also suggests that attitudes to exporting represent a limiting factor for many
SMEs. SMEs may not be aware of the potential for their products and services in export markets and on
the benefits that firms may accrue by entering international markets. Because of the limits on the time,
competency and financial resources available to SMEs, they often are not able to identify and pursue new