SMEs Development

SMEs play a key role in economic development around the world. Recommendations address government initiatives and best practices for ecosystems that would allow entrepreneurship and participation in Global Value Chains but at the same time with the objective of firmly decreasing informality which has been an undesirable unbalanced issue with SMEs.

Recommendations include supporting new forms of work that would help recruiting and retaining needed skills though regulations but also with collaborative public work spaces with dedicated digital infrastructure, tax incentives for on the job training & knowledge sharing.

In order to address SMEs limited access to finance, recommendations include development of credit guarantee schemes, access to low interest loans and developing standards towards alternative sources of finance such as cooperative finance, crowdfunding and fintech.

Finally, a workstream on SMEs-friendly regulatory frameworks starting with simple registration, grace period for direct taxation regarding new ventures, gradualist tax imposition and special treatment regarding VAT would avoid unbalanced taxation. Encourage special treatments for SME-friendly regulatory frameworks by facilitating special treatments for new ventures, reducing tax compliance cost, and promoting the application of policies to reduce costs associated with the hiring of workers by SMEs.

Because digital transformation is already changing enterprises development, there is a need to enhance innovative inclusion by promoting technological clusters, and investment in digital infrastructure.