BEIJING, Jan. 28, 2016 /PRNewswire/ -- January 26th in Beijing, Ms. Diane Wang, founder of DHgate.com and Co-Chair of the B20 SME Development Task Force proposed using China's successful e-trade business model to combat core issues SMEs face: access to finance, access to the global value chain, and improving the regulatory operating environment.
SMEs are the foundation of almost every nation's economy. SMEs employ at least 70% of workers in the majority of countries, make up 80% of net job growth, and contribute over 50% of GDP in almost all major economies. 10 million new jobs could be created if barriers to entrepreneurial ecosystems are removed.
'Core Issues SMEs Face'
Three core issues SMEs currently face that inhibit accelerated economic and job growth:
1. Access to Finance- Many global SMEs lack credit information and adequate assets to guarantee credit. More commonly in developing economies that often have less sophisticated financial systems, and less mature credit assessment systems. This is accentuated by the $3.9 worldwide unmet demand for credit.
2. Access to the Global Value Chain- SMEs are less likely to enter the global market due to multiple factors, for instance: high operational costs such as logistics; lack of skills, talents and capital; and of course the fear of not being able to compete with large multinational firms.
3. Improving the Regulatory Operating Environment- To grow and compete, SMEs must be provided with a regulatory operating environment that is conducive to their success. Proportionate costs of regulatory compliance range anywhere from 10 to 30 times greater for SMEs than for larger firms.
'Solving these Problems with China's Proven Successful Digital Model'
In past years, the Chinese government embraced the digital age and implemented a series of favorable policies and regulations, to encourage SMEs to switch to an online business model via e-trade platforms, which allow SME access to finance and the global value chain.
SMEs could access finance, by leveraging transactional data and supply chain information accumulated on e-trade platforms. Financial institutions can then analyze and determine risk based on this information, which would allow them to provide loans and other financing services to SMEs.
SMEs could access over 230 countries and regions by simply registering on e-trade platforms, and immediately starting to do business with clients worldwide, without worrying about logistics, payments, or customer service.
E-trade platforms also provide capacity building for SMEs, to ensure success in using their platforms and in achieving global worldwide business standards.
'Ms. Diane Wang'
Ms. Diane Wang, SME and women's rights advocate, not only serves as a B20 representative but also on the APEC (Asia Pacific Economic Cooperation) Business Advisory Council (ABAC) as a member of the ABAC SME Working Group and Co-Chair of the APEC Women's Forum.
Before founding DHgate.com, Ms. Wang was founder and CEO of Joyo.com, which later became Amazon China.
If you have any questions or to schedule an interview with Ms. Wang, please contact email@example.com or call +1 (949) 395-1908.
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