Chair’s Proposal on MSMEs’ Innovation and Resilient Growth

(Guangzhou Proposal)

The Asia-Pacific region counts on Micro, Small and Medium-sized Enterprises (MSMEs) as a vital source of innovation, employment and supply chain resilience. Advancing MSME growth is critical for member economies to strengthen their competitiveness. This proposal puts forward recommendations with the objective of fostering innovation and resilient growth of MSMEs across the Asia-Pacific region for consideration by member economies, including possible further areas for cooperation under the APEC SME Working Group. In this regard, the Chair suggest APEC economies to:

I. Elevate MSMEs’ Performance and Excellence

1. Support MSMEs’ role as an important driver of innovation and economic growth, and foster competitiveness of MSMEs. Particular attention can be given to helping these MSMEs integrate into innovation ecosystems, participating in global supply chains.

2. Strengthen intellectual property protection for MSMEs and leverage digital technologies to enhance infringement monitoring and enforcement efficiency.

II. Intensify Entrepreneurship Support for MSMEs

3. Tailor entrepreneurship policies to the different growth stages of MSMEs, to unlock broad entrepreneurial potential, with a particular focus on the policies that support the startups and scaling up of MSMEs.

4. Further to the Jeju Initiative on APEC Startup Alliance, foster startups and entrepreneurs through support for the development of incubators, accelerators and other  mechanisms, providing office space, training, mentorship, and investment and financing matchmaking services, as appropriate.

III. Promote the Digital Transformation including AI Adoption of MSMEs

5. Encourage the provision of easy-to-deploy and accessible technological solutions for MSMEs’ creation, management, production, and services, and foster digital transformation among MSMEs across their value chains.

6. Support MSMEs in building the capacity to adopt and deploy digital technologies including AI through practical applications, best practice sharing, and capacity-building, so as to enhance their productivity and operational efficiency.

IV Promote MSMEs access to global value chains

7. Enhance services for MSMEs, and leverage digital tools to facilitate MSMEs’ integration into global value chains. Encourage innovative approaches for MSME participation in global markets, including strengthening supply‑chain networks and fostering constructive engagement among enterprises of all sizes.

8. Foster cooperation for MSME development through voluntary information sharing in APEC on customs-related practices, strengthening policy exchange on market participation, and generating greater opportunities for MSMEs across economies, including by developing dedicated zones for MSMEs.

9. Support the transition of MSMEs to the formal economy through fostering an enabling business environment, digitalization, skills development, improved access to finance, and greater integration into global markets. Advancing these areas can help MSMEs overcome barriers to formalization, strengthen their competitiveness and participate more effectively in the global economy.