OECD Eurasia Competitiveness Programme Eastern Europe and South Caucasus Initiative
Next steps in the Eastern Partnership Enterprise Policy Performance Assessment 27 October 2011, Trento, Italy
OECD Private Sector Development 2
Enterprise Policy Performance Assessment
Next steps in the assessment process
Follow-up: How to implement reforms going forward
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3
Dimensions Sub-dimensions
8 Upgrading of Skills and Innovation
Sub
-Dim
ensio
ns
8.1 Enterprise Skills
8.2 Innovation
5.3 ACAAs
Sub-dimensions Indicators
8.2 Innovation
Ind
icators
8.2.1 Delegation of competencies and tasks
Indicators Level of Reform
Ind
icators
1 2 3 4 5
Strategic approach to broad innovation policy
Establishment of innovation and technology centres
Innovation support services
Assessment of priority areas has been completed
OECD Eastern Partnership SME Policy Performance Assessment 2012
Covering priority dimensions related to the EU Small Business Act:
Entrepreneurial Learning
Enterprise Skills
Policy co-ordination
Access to Finance for SMEs
Administrative Simplification
Company Registration
Public Private Dialogue
SME Support Services
Public Procurement
Innovation
SME Export Capabilities
Green growth
Technical standards
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Strengthening public-private
dialogue
Developing business support services for
innovative SMEs
Promoting entrepreneurial
learning and skills
Improving access to finance for SMEs
Adapting policy design to the needs
of SMEs
Measures need to be developed to further support access to credit (micro financing, credit guarantee schemes, local currency lending etc.)
Consider formalising dialogue between key stakeholders of SME policy and the private sector in a council / representative body to increase transparency of consultations in policy making
Entrepreneurial learning not sufficiently addressed in school curricula, available skills do not match labour market requirements
Improve inter-government co-ordination in SME policy implementation and take an SME perspective in reform implementation looking beyond simplification of administrative regulations and procedures
Focus business support services on SMEs with high growth potential (innovative activities and export) rather than micro company promotion
Eastern Partnership SME Policy Performance Assessment Initial findings
Source: OECD assessment based on government self-evaluation and independent experts
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Assessment of three remaining SBA principles
Principle II – Ensure that honest entrepreneurs who have faced bankruptcy quickly get a second chance
Bankruptcy is among the main risks that entrepreneurs may have to face. Ensuring that the bankruptcy procedures are effective and balanced can foster entrepreneurship. Moreover, measures to limit the stigma attached to business failures may be needed to help re-starters get a second chance.
Principle VII – Help SMEs to benefit more from the opportunities offered by the Single Market
In order to trade across borders, SMEs need to comply with a number of standards and technical regulations. SMEs have limited capacity to deal with the adoption of certification and standards which may represent significant obstacles to their ability to export their products. Governments can support SMEs who want to export by adopting internationally recognized standards.
Principle IX – Enable SMEs to turn environmental challenges into opportunities
As increasing emphasis is being put on environmental sustainability, SMEs can benefit from green growth opportunities if they adjust their business model. However, most SMEs rarely acknowledge the need to do so. Governments can help SMEs change practices and adapt to the challenges linked to environmental change.
Introduction of new principles at Trento Centre Capacity Building Seminar
27 October 2011
Second assessment cycle to be completed by 15 December 2011
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Bilateral stakeholder meetings to be held in every partner country to discuss and validate findings
Half-day meeting per country to be held in January/February 2012
• Discussion of the main findings and key conclusions
• Agreement on draft country report
• Identification of the main priorities for policy reform
Proposed dates for validation with SME co-ordinators:
Armenia: Tuesday, 24 January 2012
Ukraine: Friday, 27 January 2012 Georgia: Tuesday, 12 February 2012
Azerbaijan: Thursday, 14 February 2012 Republic of Moldova: Tuesday, 28 February 2012
Belarus: Thursday, 1 March 2012
Private sector
associations
Government
assessment
International
organisations
assessment
Independent
consultant
OECD
EBRD
ETF
European
Commission
Ministries
Agencies Public
authorities
Consolidation of findings at the regional level in March/April 2012
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Timeline for next steps
10 17 24 31 7 14 21 28 5 12 19 26 9 16 23 30 6 13 20 27 5 12 19 26
October November December January February March
OECD to present to SBA co-ordinators: 1) Draft indicators on three new assessment principles 2) Questions regarding SBA assessment
Finalise draft thematic chapters and send to SME co-ordinators for review
Send draft country chapters and individual score sheets to SME co-ordinators for review
Provide feedback on new indicators and questions
Complete assessment on three new principles
Proposed dates for stakeholder meetings: Armenia: Tuesday, 24 January 2012 Ukraine: Friday, 27 January 2012 Georgia: Tuesday, 12 February 2012 Azerbaijan: Thursday, 14 February 2012 Republic of Moldova: Tuesday, 28 February 2012 Belarus: Thursday, 1 March 2012
Completing assessment on three new principles 15 December 2011
Bilateral stakeholder meetings in every country February – March 2012
Workshop to agree on final scores and weighting of indicators March 2012
SME co-ordinators
OECD
Regional Workshop to validate results
Official launch of final report in June 2012
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Enterprise Policy Performance Assessment
Next steps in the assessment process
Follow-up: How to implement reforms going forward
OECD Private Sector Development 9
Agribusiness ICT Transport & Logistics
Tourism Construction Textile
Entrepreneurship Promoting an entrepreneurial culture
Think small first Taking an SME approach to policy making
Responsive administration
Reducing the administrative burden on doing business
Second chance / Bankruptcy
Services / Public procurement
Access to Finance
Standards and technical regulation
Skills and innovation
Environment and green growth
Internationalisation
SBA
Po
licie
s
(Ho
rizo
nta
l ap
pro
ach
)
Key SME Sectors (Vertical approach)
Typical policy barriers to address through targeted intervention
Moving towards targeted implementation of reform Based on typical SME policy barriers to address
Typical policy barriers to address horizontally
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• Lack of qualified staff
• Lack of financial resources to purchase adequate domestic machinery and equipment
Identifying policy barriers and financial impact on SMEs Through an activity based analysis in priority sectors
Company Set-up
Research & Development
Source Make
• Lack of qualified staff, especially management and technical
• Administrative burdens to open and operate an SME
• Lack of standard quality certifications and low quality of goods compared to production requirements • Limited adequate infrastructure leading to need to collect raw products directly from farmers
• Lack of qualified resources especially at the junior level (limited attractiveness from young graduates to work in this sector)
• Low quality of transport infrastructures
• Imports of substitute goods at a higher price than locally produced
• Disproportionate import of foreign technologies and equipment
•Capital investment in large farms and machinery
• Company sponsored professional training for local managers and technical staff
• Current trend towards ownership of a distribution subsidiary to ensure on-time supply to retailers
• Significant recruitment or posting of highly remunerated foreign specialist and expatriates
• Extra-time and transaction costs
PO
LIC
Y B
AR
RIE
RS
FIN
AN
CIA
L IM
AC
T O
N
SMEs
Deliver
Activity based analysis in agribusiness
Source: OECD interviews with foreign investors in agri-business
• Lack of access to international markets
Example
OECD Private Sector Development 11 Source: OECD analysis
12 months 2 years 3 years Moderate
Good
High
Very High
The size of the bubble reflects the
estimated financial costs of the policy
Low
High
Timeline for pilot
implementation
Estimated
final impact High impact Longer term
gains
Potential impact, timing for implementation and estimated cost
Supply-Chain Financing
Investment Policy & Promotion
Guarantee Schemes
Retail Development
Special Economic Zones
Producers' Organisations
Extension Programmes
Quick implementation
Prioritising policy reforms to improve SME competitiveness Based on economic analysis
Example
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Supporting the implementation of policy reform Through multi-stakeholder dialogue and policy advisory services
Example of governance system at the country level
Ministry representatives and government
agencies
SME Representatives
Policy/Sector Working Groups
Steering Committee
International organisations
• Plan the project • Analyze data and develop materials for Working Group
meetings • Identify key insights and proposes road-map / action-plan
for implementation • Present regular project update to the Steering Committee • Provide coaching in the implementation of policy reforms
Experts
OECD
• Provide feedback • Collect data (e.g. data request,
questionnaires) • Co-operate in analysis
development • Review materials • Provide experts’ contacts
• Take decisions on reform implementation
OECD Private Sector Development 13
Country-specific SME Competitiveness Reviews
And ensuring policy dialogue at the regional level Through peer review and monitoring performance
Policy Working Group on Competitiveness
and Enterprise Policy Development
Eastern Partnership SME Competitiveness Strategy
Based on:
Strong political commitment from all six partner countries
Sound OECD policy recommendations
Established framework for co-operation with partners:
EU, EBRD, ETF, GIZ
Collaboration with OECD members, such as:
Austria, Czech Republic, Netherlands, Poland, Sweden
Applied OECD Instruments Database Capacity Building for policy
makers
Azerbaijan Armenia Belarus R. of Moldova Georgia Ukraine
Identification of policy barriers
Monitoring performance Exchange of best practices
Regional Approach Components
1-2 Sector and/or Policy Working Groups
1-2 Sector and/or Policy Working Groups
1-2 Sector and/or Policy Working Groups
1-2 Sector and/or Policy Working Groups
1-2 Sector and/or Policy Working Groups
1-2 Sector and/or Policy Working Groups
Eastern Partnership Enterprise Policy
Performance Assessment
Forthcoming 2012
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Annex
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Actions Q3 11 Q4 11 Q1 12 Q2 12
Governance and co-ordination with partners
21-22 July Stakeholder Meeting in Torino (OECD, EU, EBRD, ETF)
February: OECD Steering Committee meeting
Regional events
24-28 October: Policy Seminar • SME Policy Tools • Three additional principles
March Workshop for SBA co-ordinators to validate rankings, weighting and draft report (TBC)
April/May: Working Group meeting and SME Panel • Presentation of findings • Next steps
June: Launch of Report
Policy assessments
July - October Analysis of country assessments, preparation of draft thematic chapters
November - December: Second round of data collection with support of local consultants (principles 2, 7, 9) December Finalisation of thematic chapters (principle 3, 4, 5, 8, 10) and draft country profiles
January - February: Finalisation of thematic chapters (principle 2, 7, 9) and country profiles March – April: Quality check + printing
Country missions
February – March Country-specific stakeholder meetings
Other key dates
29-30 September Eastern Partnership Business Forum, Sopot
13 October: EU Platform 2 meeting
Overall Road-Map for 2011-2012 Action Plan
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Contact details
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Daniel Quadbeck Policy Analyst, OECD Eurasia Competitiveness Programme Tel: + 33 1 45247522 Fax : + 33 1 45249335 e-mail: [email protected]