Project Title

APEC SME Business Matching and Internship Consortium for Global Value Chain Integration 

Project Year

2014   

Project Number

SME 05 2014A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

SME 05 2014A 

Project Title

APEC SME Business Matching and Internship Consortium for Global Value Chain Integration 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2014 

Project Session

Session 2 

APEC Funding

113,952 

Co-funding Amount

51,412 

Total Project Value

165,364 

Sponsoring Forum

Small and Medium Enterprises Working Group (SMEWG) 

Topics

Small and Medium Enterprises 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Philippines 

Co-Sponsoring Economies

Papua New Guinea; Russia; United States; Viet Nam 

Expected Start Date

01/01/2015 

Expected Completion Date

30/09/2015 

Project Proponent Name 1

Jerry T Clavesillas 

Job Title 1

OIC Director 

Organization 1

Bureau of Micro, Small and Medium Enterprise Development, Department of Trade and Industry 

Postal Address 1

5/F, 361 Sen Gil Puyat Avenue, Makati City, Manila, Philippines 

Telephone 1

63-2 8977596 

Fax 1

Not Applicable 

Email 1

bmsmed@dti.gov.ph 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Jerry T Clavesillas 

Project Summary

Opportunities abound for small and medium enterprises (SMEs) integration into Global Value Chains (GVCs) as large global corporations extensively outsource intermediate inputs to production. However, SMEs do not seize this opportunity. A workshop is proposed to be held in June 2015 to identify the gaps faced by SMEs that hinder them from assimilating into global value chains. Training experts will be invited to provide insights on SME capabilities and inadequacies where capacity building will strengthen SMEs for global production network linkage. The identified gaps shall be the basis for the business matching and/or internships.   Workshop participants will be cross-matched to form an SME Global Value Chain Business Matching and Internship Consortium, and an online platform will be created to facilitate exchanges among members to expand the scale and scope of the project. 

This project is a two-day workshop that will gather SMEs, multi-national corporations (MNCs), and universities/institutes to discuss policy issues hindering SMEs’ successful participation in global value chains. The workshop will take place in Atlanta, Georgia, USA in June 2015.

Relevance

Globalization prompts economies to operate such that countries position within internationally integrated networks. These are manifested in recent progressions in global investments, production, and trade which are increasingly organized within so-called GVCs where the various stages of production processes are located across different countries, thus enhancing cooperation and complementation among economies.

SMEs, however, do not fully take advantage of this opportunity. The workshop proposed in this project will identify the impediments faced by SMEs. Large global corporations / MNCs would also be tapped to expound on their intermediate product needs. SME Training providers will also be asked to take part in the workshop to assess SME capabilities and deficiencies so they can position themselves in addressing the specific needs of SMEs through capacity building training programs. 

This project stands on a solid foundation in which SME participants, MNCs and training providers themselves identify their needs. They would be fused to form a consortium to enhance the exchange of knowledge and identify market expansion opportunities.

The project would also establish the Business Matching / Internships mechanisms that would be implemented in the region (i.e. Training Provider – Training Provider, SME - SME linkage, MNC-Training Provider, Training Provider – SME, MNC-SME linkage) making it a multi-year project. 

This project falls under several items of the APEC Funding Criteria on promoting SME development including improving access to global markets (Rank 1), promoting GVC (Rank 1), supply chain connectivity and performance improvements (Rank 1), and promoting innovation policy and research (Rank 2).

The project’s capacity-building initiative as well as its emphasis on global value chain is also aligned with the objectives of the New Sub-Fund on Supply Chain Connectivity (SCC) under the APEC Support Fund.

Objectives

This project aims to address the following objectives: 

1) To jumpstart information exchange and to identify the knowledge and capability gaps for SMEs in global value chains;

2) To create an SME Global Value Chain Business Matching and Internship Consortium in APEC to foster cooperation and to spur information exchange among industry stakeholders -MNCs, SME training providers, SME agencies, and industry champions; and

3) To develop an online platform for easier communication and information exchange.

Alignment

This project is aligned with Rank 1 priorities in promoting Global Value Chains and Supply Chain Connectivity and Performance Indicators. This also supports the Leaders’ instructions to enhance SMEs global competitiveness by improving access to finance and markets, supporting entrepreneurship, accelerating the growth of start-ups, strengthening capacities for business continuity and empowering our SMEs to expand to international markets and to participate in global supply chains. 

This will likewise support APEC startup accelerator initiative supported by Leaders in 2012 by developing the networks of mentors and putting in place the system for the accreditation of more academic institutions, SMEs in a regional business mentoring program. 

Further, this project is aligned with Priority 1 of the SMEWG Strategic Plan 2013-2016 on Building Management Capability, Entrepreneurship and Innovation.

TILF/ASF Justification

The project will be a venue for stakeholders from APEC developing economies to learn from value chain experts, as well as MNCs. 

SME Training providers will also be asked to take part in the workshop to assess SME capabilities and deficiencies so they can focus on the specific needs of SMEs. Aside from sharing best practices, large global corporations / MNCs would also be tapped to expound on their intermediate product needs. 

This will also encourage active engagement of delegates in the discussions and workshop sessions, particularly in exploring issues and concerns regarding GVC. 

The outcomes of the two-day workshop, as well as insights from focus group discussions and survey results will be put together into a report to be disseminated to participating economies for their reference.

Beneficiaries and Outputs

Outputs:  The workshop will provide a venue for APEC economies to share current issues and concerns in various sectors re: global value chain. The result of which will be drafted in a report format which will outline priority issues and the appropriate next steps to facilitate SMEs into global value chains. The report will be shared with the participants and APEC SMEWG both in print and online. 

With the goal of advancing the internationalization of SMEs, this project will develop the SME Global Value Chain Consortium in the Asia Pacific Region. With an alliance of stakeholders from the academe, industry, government and non-government SME agencies, the Consortium will enhance the exchange of knowledge and identify market expansion opportunities. In addition, an Online Platform for the consortium will also be developed. 

The project would also establish the Business Matching / Internships mechanisms that would be implemented in the APEC region (i.e. Training Provider – Training Provider, SME - SME linkage, MNC-Training Provider, Training Provider – SME, MNC-SME linkage) making it a multi-year project. 

Outcomes: The project as a whole serves as an avenue for SMEs, key industry players and policy makers to engage in discussions on global value chain to address gaps in knowledge, policy and practice. Identifying issues that are critical to SMEs’ participation in the global supply chain will be central to policy development.

The issues and concerns raised in the workshop, as well as best practices shared by experts in the specified industry sectors will be disseminated by the participants in their respective economies, particularly in the sector they are involved in.

The project would establish a consortium for the Business Matching /Internship Mechanisms that would be implemented in the Asia Pacific Region. The online portal would be utilized to exchange information that would help facilitate linkages of MNCs, SMEs and training providers. Through the online portal, large global corporations would be able to provide their general supply chain information while SMEs share their company capabilities and product information. Training institutions could also detail in the online platform their training assistance offerings.  The exchanges are envisioned to expand supplier information for the MNCs, facilitate access to markets of SMEs and upgrade capabilities of training providers. 

The project will have the following success indicators:

· Establishment of Business Matching /Internship Consortium within the APEC Region

· Establishment and operationalization of an Online Platform for information exchanges

·  Publication of Project Final Report

Beneficiaries: Direct beneficiaries of the project include industry stakeholders from APEC economies – SMEs, MNCs, universities/institutes, straining providers, industry associations, relevant SME-oriented government and non-government agencies, etc. that will discuss policy issues hindering SMEs' successful participation in global value chains. 

Following the result of the 36th APEC SME Working Group meeting held in the Philippines on 13-14 March 2014, this project will focus on five key sectors where SMEs have a high interest in participating in GVCs: agriculture, food processing, electronics, handicrafts, and automobiles. 

In order to provide supply chain-related experience, the logistics sector will also be among the participants of the workshop. In addition, representatives from the IT sector will be tapped for the discussion of issues regarding electronic-data interchange, vendor management inventory, among others. 

This project also aims to build relationship between training institutions such as the Georgia Institute of Technology based in Atlanta, Georgia. The workshop to be conducted in Atlanta, Georgia will serve as an initial step in fostering linkage between Georgia Tech and other participating training institutions from member economies, particularly those from APEC developing economies.

SMEs and industry organizations will gain better understanding of the global value chain and related topics that are necessary in successfully engaging with buyers, investors and other partners in the international market. Knowledge of these may contribute to further development of SMEs in the region. 

Training providers will be able to advance their knowledge in global value chain and incorporate it with their training modules. They will play a role in preparing SMEs in participating in the global supply chain. 

Representatives of government agencies will gain insights on SME capabilities and inadequacies in global value chain where capacity building will strengthen SMEs for global production network linkage. Policy makers specializing in trade and SMEs will have a huge stake in the workshop because policy development is fundamental to SME development. 

To ensure women participation, thirty percent (30%) of participants would be allocated to women.

Dissemination

The findings of the workshop, the final report, as well as the SME Global Value Chain Consortium, will be made available in print and online to the participants involved in the project, the APEC SMEWG, industry associations, chamber of commerce and industry, and other relevant SME-oriented organizations. 

The workshop presentations and the summary report/findings of the workshop will be put together into a summary report which will be shared to the APEC SMEWG for dissemination to their corresponding regions. 

Final output arising from the project will be forwarded to the APEC SME Working Group members for onward transmittal to interested groups. Discussion and outputs of the project will also be used for the development of the APEC Business Matching and Internship Consortium. The target audience of the outputs includes SME policy development officials, training providers, industry associations, and government agencies, trade promotion agencies, and SMEs in the APEC region. 

The Online Platform will be hosted by the Philippines. Possible partnership with champion economies in global value chain initiative like the USA or identification of existing platforms (e.g., by private companies or institutions) will be pursued for collaboration.

Gender

To ensure cross-representation of industry stakeholders and genders, this project will ensure that it will encourage involvement of women participants. Specifically, this project will integrate, strengthen, and advance further women’s awareness, knowledge, and involvement in the issue of global value chain, thereby enhancing their chances of getting into the international market. Women are well represented in majority of the sectors selected for this project, particularly in agriculture, food-processing and handicraft sectors. The project will ensure the participation of women entrepreneurs through known women organizations, encouraging women business owners, women managers, and APEC women delegates. Women participants will comprise at least 30 per cent of our speakers and participants.

Work Plan

Survey / FGD
An initial APEC survey and literature review  shall be conducted  to surface the issues faced by SMEs from participating in GVC and capture the supply chain information and supplier needs of MNCs. Training providers would be assessed of their capabilities and deficiencies, as well. Results of which shall be summed up to give a picture of how the SMEs, MNCs and training providers could link up to address their needs. Appropriate mechanisms for business matching shall be developed based on the results of these activities. Mechanisms may include internships, short-term study visits, and longer term joint ventures. 

Establishment of Online Portal
Results of the Survey shall be posted in the Online Portal for easy access of the Survey participants. This should update them on the outcome of the survey and help them generate business matching opportunity ideas. This would also entice their interest to be part of the Business Matching and Internship Consortium.  

Workshops and Consultations
The workshops and consultations that would be held in Atlanta, Georgia should give concrete examples of successful partnerships and interventions. Best business matching practices shall be showcased, as well. Face-to-face interactions would likewise give participants networking opportunities that they could build on.  

This project as a whole, will work as an engine to gather the necessary information crucial to the linkage and reciprocal benefit of actors in the GVC.    It will set out the active participation of the private sector to spur the functioning of the consortium and the business matching mechanism in APEC Region. The intended beneficiaries- SMEs, training institutions and large global corporations would be able to strengthen and accelerate the atmosphere in the region towards heightened interconnectedness with the effective exchange of information. It also means that the incentives of linkages and collaboration would be harnessed which in the end will promote innovative development, economic stimulation and growth for APEC economies. 

Recent literature paints the recent progression on global investments, production and trade within GVC, which enhance cooperation and complementation of economies. A strong functioning network or consortium designed precisely to facilitate trade and exchanges through business matching that would be established through this project will be a trailblazer in the design to institutionalize the promotion of GVC within the Asia-Pacific region. The advantages accrue to all players. It is therefore envisioned that they- SMEs, training institutions and large global corporations, would have the interest to promote and sustain succeeding business matching activities.
 

Table 1. Project Work Plan 

Month (2015)

Activities

January

-   Survey / FGD

-   Literature review

-   Initial discussion meetings

-   Venue and administrative arrangement

-   Identification of workshop participants

February - May

-   Sending of invitations

-   Workshop arrangements

-   Accommodations and flights arrangement for workshop participants

-   Preparation of Business Matching Internship Mechanism

-   Preliminary discussion through videoconferencing, email exchanges will be conducted by the PO and the contractor to establish a Business Matching Mechanism. The United States has agreed in helping link with known supply chains experts/institutions like Georgia Technology and Emory. The PO will likewise coordinate with other institutions in APEC for collaboration.

June

-   Conduct of Workshop and Consultation with target partner institutions in Atlanta, Georgia, USA on June 7 – 8, 2014 (see detailed workshop activities on Table 2)

-    Consortium Preliminaries

July - August

-    Preparation and Finalization of Workshop Proceedings

-    Preparation of refined Business Matching Internship Mechanism based on results of the Workshop and Consultation

-    Setting up of the Online Platform

-    Finalization of Consortium structure

September

-  Presentation of Workshop Results

-    Launching of the SME Global Value Chain Consortium in the Asia Pacific Region

-    Launching of the Online Platform for SME Global Value Chain Consortium in the Asia Pacific Region

-    Next Steps: Establishment of Business Matching / Internships:

.  Training Provider – Training Provider

.  SME - SME linkage

.  MNC-Training Provider

.  Training Provider - SME

.  MNC-SME linkage

Table 2. Workshop Activities 

Date

Activities

Day 1:

7 June 2014

Discuss the benefits of GVC in APEC and how SMEs are participating

  • Invite some success stories on industry-academe partnership (Invite US Georgia Tech to discuss their intervention on the Chilean winery industry)
  • Invite some successful industry cluster managers and how they are networking with buyers, investors, academe

Show relationship of important services industries in supporting the agriculture, food processing, automotives, electronics and the handicrafts sector

Day 2:

8 June 2014

Define mechanisms for building cooperation with academe and industry

·   What are the policies as well as regulatory barriers inhibiting the academe to participate in the governments’ efforts to support global value chain?

·   What incentives can governments give to the academe to encourage their greater involvement in industry development?

·   How can APEC establish an expert working group on GVC and what will be the participation of academe?

·   How can developing economies move up the value chain? What should be the elements of a multiyear project on GVC?


Risks

There is a possible risk of delays in the workshop. Among the risk management strategies to be implemented are:

·  early identification of target workshop participants

·  adequate visa application time

· disseminating online pre-workshop questionnaire to target participants to gather relevant information before the workshop

Monitoring and Evaluation

Progress of the project will be evaluated based on the economies’ participation in the workshop. Post activity will be evaluated on the participation of industry stakeholders – SMEs, SME training providers, SME agencies, MNCs and industry champions in the online platform that will promote alliance among APEC economies. The project targets a seventy percent (70%) participation rate of APEC Member economies considering that this will be held at the sidelines of the APEC SMEWG Meeting. The five sectors identified in this proposal should all be represented, as well. 

This project builds on the outputs of other APEC-funded GVC related projects. It draws on the role of training providers in upgrading capabilities of SMEs and exerts a pull on the function of large global corporations making them more accessible to SMEs. The consortium and the online platform that would be established through this project would therefore galvanize global production linkages. 

To assess the level of attainment of the project objectives and deliverables, an evaluation through online questionnaires and/or face-to-face or telephone interviews of project stakeholders will be conducted. Evaluation may be carried out through e-mailed M & E questionnaires and/or telephone/face-to-face interviews of project stakeholders (MNCs, SMEs, etc.) 

The Project Overseer will submit a project monitoring report to the SMEWG Program Director.

Linkages

Engagement: SMEs, MNCs, academe, training institutions, and relevant government agencies will be gathered in the workshop to discuss policy issues hindering SMEs' successful participation in global value chains. This project will build collaboration with other APEC fora: Human Resource Development, Electronic Commerce, Standards and Conformance, Agriculture Technical Cooperation Working Group, Automotive Dialogue, Business Mobility Group, Committee on Trade and Investment, Economic Committee, Policy Partnership on Women and the Economy, Market Access Group. 

Previous work: Among others, this project builds on the findings of the APEC Policy Support Unit's study published on May 2014 regarding "Integrating SMEs into Global Value Chain: Policy Principles and Best Practices". 

APEC’s comparative advantage: APEC comprises of a wide coverage in terms of its member economies and its resources. The various contact points from its member economies is the best provider of capacity building and technical expertise in efforts in facilitating trade, and advocacies focusing on policies and best practices in global value chain and supply chain.

Sustainability

Taking into consideration their important role in sustaining this project, the following sectors will be included: academe, industry, government and non-government agencies. 

In order to sustain and further encourage networking among participating APEC economies, this project will establish the Online Platform for SME Global Value Chain Consortium in the Asia Pacific Region.  The platform will be initially developed and or identified, if already existing, by the Philippines: it could be a simple network of agencies/stakeholders or an alliance working together for the internship business matching. A focal point will be identified and/or nominated per APEC member country. The focal points would be responsible in submitting MNCs/SMEs/training institutions for the business matching.  The APEC SME Working Group is expected to provide general guidelines/directions/policies for the exchanges.

Next step after the project is the establishment of mechanism for business matching internships particularly in developing linkages between training providers, SMEs, MNCs, and the academe. In the long term it is the projected that consortium members would buy-in the project. Being industry-driven, costs that would accrue in the succeeding activities after the project would have to be shouldered by the MNC/SME/training institutions themselves. 

Project Overseers

The Project Overseer will be Mr. Jerry T. Clavesillas, OIC Director of the Bureau of Micro, Small and Medium Enterprise Development under the Department of Trade and Industry at Makati City, Philippines. 

As OIC Director of DTI-BMSMED, Mr. Clavesillas is principally involved in the planning, development and administration of the comprehensive program for the Bureau. He also takes charge of the study, preparation, planning, implementation and evaluation of programs for the promotion and development of small and medium enterprises (e.g. MSME Development Plan); recommends policies and standards, objectives and priorities and likely directions in the promotion and development of these enterprises through the SME Development Council; draws and promulgates rules and regulations necessary in carrying out established policies and standards; provides technical and managerial assistance to entrepreneurs; assists the Undersecretary and Secretary of Trade and Industry in industrial planning and the formulation of policy decisions by providing pertinent  technical analysis; plans and supervises the sectoral programs of selected enterprises; enlist the opinions and suggestions of the private sector and other government agencies through dialogues and public hearings on the implementation of government programs in the achievement of the economy’s goals (e.g. Rural Micro Enterprise Promotion Program); represents the Bureau or Department of Trade and Industry in inter-agency and international meetings (e.g. APEC and ASEAN SME Working Group Meetings), seminars, conferences and other ad-hoc committee assignments where DTI is invited to participate.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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