Tag Archives: SMEs

How Selling Online Helps Small Businesses in the Developing World Break into Export Markets

From the report on page 14. It shows that in 2014, eBay was the primarily an export platform for the eBay-enabled SMEs in Chile, Colombia, South Africa, Indonesia, and Thailand

From the report on page 14. It shows that in 2014, eBay was the primarily an export platform for the eBay-enabled SMEs in Chile, Colombia, South Africa, Indonesia, and Thailand

Can e-commerce markets help create a more inclusive global economy where small and medium enterprises (SMEs) from developing countries can export their products overseas without facing major obstacles? According to a recent report published by eBay Public Policy Lab, Small Online Business Growth Report: Towards an Inclusive Global Economy, the answer is yes.

As the World Economic Forum notes, internet-based commerce sites have a positive impact for SMEs around the world because they open up new export opportunities, facilitate access to low-cost imported inputs, and e-commerce marketplaces make it easier to globally sell and source goods by reducing non-tariff barriers to trade, such as access to information.

The eBay report looked at its own data to examine if these arguments were true. The datasets of transactions from small online business (sellers with sales of more than USD $10,000 on eBay marketplace) from 2010 to 2014 in 18 countries, including emerging markets like Brazil, Mexico, Colombia, Chile, South Africa, India, Indonesia and Thailand.

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Small Business in Egypt: the Heavy Burden of Following the Rules

Sayed Diab makes his living providing sound systems and digital services for events like this CIPE discussion. (Photo: CIPE Egypt)

By Ahmed ElSawy

This post originally appeared in Arabic on the CIPE Arabia blog.

Sayed Diab spent 26 years of his life working as a technician supplying organizations with sound systems and related digital services for their events and conferences. Six years ago he started his own business in this field and has since made his living providing his services to CIPE, other NGOs, business associations, and think tanks in Cairo, Egypt.

Diab recently sat down for an interview about his experiences running his own business in Egypt and what he has learned as a small business owner from the many CIPE events and discussions he has worked on.

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Promoting Advocacy with Technology

panoply

By Lauren Dawes, Panoply Digital

This blog post was originally published by Panoply Digital, who are helping CIPE partners around the world improve their digital capabilities.

In a previous blog, Michael wrote about the work we have been doing with the Center for International Private Enterprise (CIPE) for almost a year now – developing a training programme to teach partners of CIPE’s network how to better communicate and carry out their advocacy efforts via the use of technology. The programme is the brainchild of Maiko Nakagaki, Programme Officer (Global) at CIPE who identified a need and opportunity to bolster their partner’s capacity to better serve their members through the integration of technology. The initial phase of our project consisted of surveys and in-depth interviews to assist us in identifying several high-need countries to conduct the training workshops. The first of those, Nigeria, took place on February 15-16 where I was hosted by the Association of Nigerian Women Business Network (ANWBN) to deliver four modules: Research, Polling and Tracking, Communication, and Online Presence.

Many of the ANWBN coalition was represented across the two days including International Women Society of Nigeria (IWSN), Women’s Consortium of Nigeria (WOCON), and NACCIMA Women Wing (NAWOG). The training consisted of live demos and hands on activities which was great fun given the how keen the group was to learn. Of course there were the obvious concerns when preparing to deliver the training – limited bandwidth and power outages being the main ones – but the internet held strong and the outages kindly timed themselves with our scheduled breaks! One of the key outcomes was to ensure that there would be uptake of some of the tools that we trained the attendees on. For that to be a viable option, they needed to be free or low-cost, require minimal bandwidth, be accessible across multiple devices and easy to implement and use. With that in mind, we opted to use a couple of Google tools: Alerts and Forms; BulkSMS and SMS Poll to cover communication and capturing data on basic devices; and Feedly.

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Building Sustainable Feedback into Ukraine’s Economic Reform Efforts

Expert Discussion of SURE Draft_April, 2015

(Photo: CIPE)

This past year has been filled with both positive and negative news regarding ongoing reforms in the Ukrainian economy. Ukraine entered into a historic free trade agreement with the European Union that went into effect on January 1, 2016, which was met with the predictable implementation of retaliatory tariffs on Ukrainian goods by Russia.

Additionally, and in spite of raucous parliamentary sessions and infighting among the parties, the Rada (Ukraine’s legislature) has adopted various pieces of pro-reform legislation, some of which were proposed by CIPE’s partners under a recently completed USAID-funded program Supporting Urgent Reforms to Better Ukraine’s Business Environment (SURE).

The support of USAID allowed CIPE and partners to build a sustainable institutional framework for business associations representing SMEs to have direct input into legislation that effects SME operations specifically, and to improve the environment for doing business in Ukraine more broadly.

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Russia’s Plan for Economic Recovery: Demolish Small Businesses

With shocking disregard for property rights, due process and the rule of law, overnight on February 9 the Moscow city government set out around city to raze hundreds of small businesses. The demolition took place in spite of the fact that many of these businesses had the proper paperwork to operate a business in that location, and in some cases court orders staying any proposed demolition. While the Moscow city government can rely on revenue from other sources, these kiosks and mini-malls supported hundreds of small shops that provided employment for over 2,000 Moscow residents according to the city’s own estimates.

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Kuwait Needs More Young Entrepreneurs

Photo: Hanna Rhodin

Photo: Hanna Rhodin

By Hanna Rhodin

There is a long history of a bustling merchant culture in Kuwait. Since the 18th century, the country has been known for trade: whether in exchanging goods with India, boat-building, or its pearling industry. Wealth has come to be associated with certain families within the country, thanks to their past success in business that, in some cases, dates back generations. Today these families continue to dominate the private sector. However, according to the official statistics, nearly 85 percent of the Kuwaiti population is still employed by the government. While the last decade has showed a surge in entrepreneurial initiatives, roadblocks and barriers remain.

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Helping Diaspora Investors Make a Difference in their Home Countries

A money transfer service where people can receive remittances in Hong Kong. (Photo: Wikimedia Commons)

A shop in Hong Kong where people can receive money sent from abroad. Remittances accounted for more than 80 percent of foreign investment into mainland China from 1979 to 1995. (Photo: Wikimedia Commons)

“There is nothing more powerful than individuals motivated to invest in meaningful programs in their home countries,” said Eric-Vincent Guichard, the Founder and CEO of Homestrings, an online platform facilitating global diaspora investments.  The son of a Guinean father and an American mother, Eric spent most of his formative years in Guinea attending primary and secondary school before moving to the United States. From his personal experience, he knows the challenges that diaspora communities face when trying to invest in their country of origin.

Remittances comprise a significant portion of the foreign directed investment (FDI) in many countries. According to the World Bank, global remittances consistently dwarf foreign assistance by a factor of three, with $414 billion projected this year alone.  Even in countries that attract a lot of investment from global markets, the role of diaspora investment is substantial: between 1991 and 2001, the Indian diaspora was responsible for $2.8 billion of the $10 billion in foreign investment the flowed into the country. In China, diaspora investment accounted for the vast majority — 80 percent — of total FDI between 1979 and 1995.

Remittances have come to play this vital role as source of FDI despite various rules and regulations that make it difficult for individuals to invest in private companies back home. Traditionally, diaspora remittances have flowed mostly to family members, religious institutions, and non-governmental organizations.

These channels are invaluable when it comes to supporting charitable causes and small family businesses, but do not give investors much control over how the money is used or provide the opportunity to re-invest or make a profit. This significantly limits the potential of diaspora investment to develop larger, more productive businesses that can create jobs and economic growth back home.

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