AECM Annual Event 2015 - Lucia Cusmano
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The document summarizes Lucia Cusmano's presentation at the AECM Annual Seminar in Berlin on June 19, 2015 about building a conducive environment for innovative small- and medium-sized enterprises (SMEs). It discusses challenges SMEs face such as access to finance and regulations, and how business investments have shifted to non-OECD countries. It also outlines an OECD project to benchmark SME performance and business environment policies across countries to help address these challenges.
AECM Annual Event 2015 - Lucia Cusmano
- 1. AECM Annual Seminar Berlin 19 June 2015 Building a conducive environment for innovative SMEs Lucia Cusmano Senior Economist Secretary to OECD Working Party on SMEs and Entrepreneurship (WPSMEE) OECD Centre for SMEs, Entrepreneurship & Local Development (CFE)
- 2. OECD Ministerial Council Meeting 2015 Unlocking Investment
- 3. Sustaining investment in innovation Business investment in knowledge assets slowed, but weathered the crisis better and recovered earlier (Index, 2005=100) Source: OECD (2014) based on OECD National Accounts.
- 4. Attracting investments Investments shifting to non-OECD countries Source: OECD Economic Outlook, 2015/1
- 5. Channelling liquidity into productive investments The puzzle Stock market boom: asset prices rising in response to zero interest rates and quantitative easing Stagnating productive investments: uncertainty and high risk perceived by investors Emergence of new financing instruments: expanding (from a low basis) and engaging new (sometimes unexperienced) investors Growth capital gap for businesses: heavy reliance on traditional debt to fulfill investment needs
- 6. Investment for sustainable and inclusive growth • Sustain the cyclical recovery, which is still fragile – subdued actual and expected demand – lingering uncertainty – remaining excess capacity in many areas • Increase productivity Labour productivity growth Less investment Scarred labour markets and de-skilling Slower diffusion and embodiment of new technologies
- 7. What are the main constraints for SMEs? Finance … and beyond The most pressing problems faced by euro area enterprises ECB Survey on Access to Finance, April-September 2014 % of respondents Source: ECB (2014)
- 8. The business environment matters (and so structural reforms) Main components of importance for SMEs • Navigating and complying with regulation • Dealing with taxation • Protecting rights and enforcing contracts • Building trust in institutions and public services • Implementing anti-corruption practices • Standing fair competition • Finding customers • Overcoming barriers to international markets • Accessing public markets • Accessing finance • Finding appropriate skills • Sourcing knowledge, technology and innovation • Managing intellectual assets • Managing energy costs
- 9. OECD project on Benchmarking policies for stronger SME performance Objectives • Enable countries to benchmark their SME performance and SME business environment conditions internationally, and draw links with policies. • Fill an important information gap on SMEs. Pilot project (2015-16) Phase 1. SME business environment scoreboard for OECD countries Phase 2. Comparative assessment of selected policies targeted to SMEs in pilot countries (Canada, Israel, Portugal and the UK)
- 10. SME business environment scoreboard