Benefits to Region

Micro-Small-and-Medium Sized Enterprises (MSMEs) continue to lead growth and development in APEC economies. Data from the World Bank indicates they create 7 out of 10 jobs and contribute up to 40% of gross domestic product in emerging markets, serving as the backbone of their economies. As identified by a 2023 OECD SME and Entrepreneurship Paper, getting MSMEs “fit for the era of hybrid [business models] is critical”. However, MSMEs “face challenges in seizing these opportunities” to grow in an omni-channel environment. This project seeks to strengthen MSME ability to become “omni-channel” – seamlessly integrating their operations across physical and digital channels – increasing their access to customers worldwide and enabling them to grow their business, ultimately improving their ability to successfully integrate into the global economy. This project also seeks to strengthen policymakers’ ability to develop “balanced” policies that do not inadvertently favor one channel over another and collect purpose driven data from the originating platform (physical or digital) to inform policy decisions.

This project will benefit all APEC economies that seek to support and enable their MSMEs to engage in the global value chain and marketplace, including those government officials that support citizen-facing government services. This includes women-owned MSMEs who are negatively impacted by “unfavorable institutional and regulatory frameworks that have made it more difficult for female SME owners to effectively collateralize their assets or to deal with regulations and procedures.”

Eligibility and Fund Priorities

As required by the Sub-Fund for Digital Innovation, the project directly supports: facilitating greater participation of businesses in global commerce, in particular MSMEs; promoting adoption of innovative technologies and services; and enhancing trust and security in the use of ICTs. The project will benefit all economies, particularly developing APEC economies, by building on and complementing earlier digitalization initiatives both within the DESG and other APEC committees, like the SMEWG, as outlined in the earlier sections. It will engage a broad range of stakeholders, including policy makers and regulators, the private sector and relevant private sector organizations, and civil society, where appropriate. The project also contributes to the Cross-Border E-Commerce Facilitation Framework priority to encourage and facilitate MSME participation in global commerce by leveraging physical and digital marketplaces to make them successful regionally and globally.

Capacity Building

This project will build long term capacity in APEC economies that will contribute to more sustainable and equitable economic development. It also builds upon DESG 05 2022A “Catalyzing Stakeholders for Effective Implementation of Digital Licensing and Permitting Measures for Post-COVID-19 Economic Recovery” by improving the facilitation of MSME assets through the omni-channel environment. The planned workshop will also allow participants – both government and private sector – to build mutually supportive networks across the region for MSME integration in the global economy. The project will have value-add for all APEC economies, specifically the travel eligible economies.