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Summit Discusses Financing of SMEs, as ABAC Prepares to Advise APEC Leaders

APEC Business Advisory Council (ABAC) Lima, Peru | 16 November 2008

The APEC Business Advisory Council (ABAC) has concluded the 2nd Small and Medium Enterprises (SME) Summit as it prepares to address regional Leaders.

According to ABAC Chair, Juan Francisco Raffo:

"Smaller businesses will be particularly important to economies as they cope with the outcomes of the global financial crisis. About 80 percent of all workers in the region are employed by SMEs. So the way that economies fare is directly correlated to the ability of SMEs to address both future challenges and opportunities."

Summit participants considered ways to improve their business performance in order to survive in increasingly competitive and challenging markets. These are reinforced by recommendations to be presented by ABAC, calling upon APEC Leaders to implement three support programs:

  1. Technological infrastructure - information communication technology services and technological infrastructure for SME development in all APEC member economies by 2020;
  2. Financing capacity building - comprehensive capacity building programs to reinforce the SME financing capability of all APEC member economies; and
  3. Training - to overcome the shortage of advanced management knowledge and skills, necessary to entrepreneurship and finance and marketing skills.

The recommendations of ABAC are of particular importance to Leaders as the group represents an exclusively private perspective. ABAC comprises some of the most influential business minds from throughout the APEC region. Members are appointed by Leaders of their respective economies.

SMEs account for over 90 percent of all businesses in the APEC region. Beyond wealth generation and distribution, the influence of small business extends to areas such as technological advancement and social development.