If we are a manager of a tiny or medium-sized association we are substantially focused on your evident business challenges. But did we know that SMEs beget half of sum domestic product in a G20 economies, comment for three-quarters of grave practice and emanate 80 per cent of net pursuit growth?
Research by Accenture and Alibaba Group – that owns a South China Morning Post – shows that a value of cross-border business-to-consumer e-commerce is set to grow from US$230 billion in 2014 to US$994 billion in 2020 and comment for roughly 30 per cent of all B2C online retail. Much of this is driven by SMEs.
One reason because SMEs have turn an critical partial of a tellurian economy is that they have addressed many normal hurdles – such as logistics and a cost of scaling adult – by digital solutions. Leveraging analytics, Big Data, apps and amicable media, SMEs are shortening a costs of identifying new customers, distinguished new partnerships and substantiating brands.
Smaller companies also have a distance advantage – they are mostly nimbler than their behemoth competitors. Our recommendation to all businesses is to lead attention intrusion – don’t be a disrupted. One proceed to lead is to work with partners. We have found that many of a companies many prepared to interrupt are some-more intent in flourishing and broadening their ecosystem partnerships and are peaceful to combine to support innovation, research, expansion and a launch of new products.
That means building a network of alliances to build handling models that are incomparable than a particular business. Think of it as a propagandize of fish swimming together to sentinel off bigger predators. But this proceed is even improved than that: it’s not only a counterclaim mechanism, it’s a expansion strategy.
We call these businesses “platform companies”, and a ones that are successful are a ones that gain on a whole ecosystem rather than simply leveraging resources from within their possess company.
But let’s face it, SME managers still have many singular challenges. The cost of borrowing from financial institutions, when it is possible, is mostly prohibitively high for SMEs in Asia-Pacific. Indeed, unmet direct for micro credit and SME credit is between US$3 trillion and US$4 trillion, according to a International Finance Corp. Many SMEs also miss entrance to abroad markets due to a costs and complexities involved; a cost of regulatory correspondence for SMEs can be 10 to 30 times incomparable than for incomparable businesses.
It doesn’t have to be so expensive. Last week, as partial of a G20 summit, business leaders collected underneath a auspices of a Business 20. And as partial of a work for a B20’s SME Development Taskforce, we support a recommendations to a G20. One of them is to deliver a Electronic World Trading Platform, that is a private sector-led beginning focused privately on eradicating barriers to online trade. This could assistance tiny traders who have been enabled by e-commerce to buy and sell opposite borders. By formulating common norms for etiquette and correspondence as good as a harmonisation of standards and taxation, a cost of doing business – quite for SMEs – would drop.
Time will tell if a Electronic World Trading Platform comes to fruition. It could turn a personification margin for businesses of all sizes to contest globally. Meanwhile, it’s needed for SME managers to use digital solutions to optimise their business capabilities and build height businesses to offer some-more services that business expect.
Gianfranco Casati is organisation arch executive for rising markets during Accenture
Article source: http://www.scmp.com/business/article/2017965/taking-big-boys-small-businesses-can-power-economies