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74

4.2.3 Policy measures and tools

In the countries surveyed, SME export promotion strategies, as implemented by TPOs, as well as other

public or international institution, address largely the following key challenges, common to current or

potential SME exporters: i) Access to markets; ii) Skills development; iii) Access to finance and credit

export guarantees; and, though to a lesser degree iv) Clustering and access to technology and

innovation

4.2.3.1 Access to markets

Informational barriers represent serious impediments to SME export activities in all countries

surveyed and are typically identified by TPOs as the main target for their support programmes. In OIC

countries, these informational barriers concern many different aspects of foreign trade, including

regulations and standards, custom procedures, foreign business environment and customers,

distribution channels and potential business partners, and, also available trade promotion instruments.

The information gaps often limit the capacity of SMEs to benefit from opportunities created through

multilateral or bilateral negotiations, as well as to seize opportunities that expanding global production

networks may bring forward.

The most common tools developed in this area consist in information access points, increasingly also

in the form of on-line portals, regular publications of trade statistics, generic market information or

reports on specific markets, as well as workshops and seminars that may be targeted for a selected

group of enterprises. Access to market is also promoted through matching services, whereby potential

foreign partners are identified and linkages with local businesses created. In Malaysia, MATRADE is

often the first reference point for enquiries and visits by foreign importers. The agency's role is then to

match them with compatible local partners who can offer the products and services they seek.

In this area, beside TPOs, an important role for diffusing information and increasing awareness by

entrepreneurs is generally played by Business Associations and Chambers of Commerce. Indeed, the

lack or weakness of this business institutional fabric has been recognised in some of the countries

analysed as an additional obstacle to reach out to SMEs with information and other support

programmes.

In some countries, efforts have been made to develop a market for trade assistance services, to favour

the development of professional services in this area, which may enrich the local business eco-system.

Malaysia’s Going Export (GoEx) programme provides an example in this regard. It aims to address

challenges faced by SMEs on new market entry overseas due to the high upfront costs and lack of

detailed knowledge about the new markets and competitors. Through a structured planning and

technical advisory, the programme facilitates SMEs to access detailed information on the targeted

markets, including information on: buyers; competitors; pricing; logistics; supply chain; consumer

preference, regulations, legislation. Over time, however, the programme aims to build a pool of

experts who can help provide value-added services which are crucial to ensure the success in exports

(Box 4.4).

In Yemen, the Small Micro Enterprise Promotion Services (SMEPS) considers consultants and

providers of business development services as key strategic partners for the business and technical

development of SMEs. For this purpose, SMEPS has created a database of Yemeni consultants based

in the cities of Sana’a, Aden, Taiz and Mukalla. The database has been uploaded into a strongly

promoted directory based website. Promoting the database may encourage SMEs (with partial

financing through SMEPS programmes) to avail themselves of professional consultancy services to

improve their businesses. The website will also produce regularly business reports and business

consultancy papers.