Achieving better integration of SMEs in Global Value Chains

“Small and medium sized enterprises (SMEs) are the backbone of the global economy. Increasing their participation in Global Value Chains (GVCs) means growth and employment”, argued Mrs Luisa Santos, BusinessEurope Director for International Relations during her intervention at the 15th Asia-Europe Business Forum, organised in Ulaanbaatar, Mongolia, 13 and 14 July.

“Economies in Asia – developed, emerging or developing – should support their SMEs to effectively integrate in GVCs, by creating the right business environment, conducive to the development and diversification of SMEs. Here, the work of international institutions such as the OECD and the WTO can provide useful guidance”, concluded Santos.

Over the past 20 years, the digital revolution has led to a world that is better connected and to the emergence of Global Value Chains. That means new opportunities for businesses. But many GVCs are outside traditional markets, which can be challenging for SMEs.  They need to adapt to a new global trading and production reality, increase their skills and build their capacity.