Fostering Greater SME Participation in a Globally Integrated Economy
By Miriam Koreen and Lucia Cusmano
Global value chains (GVCs) offer new opportunities for SMEs to integrate the global economy. Benefits from GVC participation depend on the nature of inter-firm linkages and position in global production networks. The digital transformation is reducing trade costs, increasing SME involvement in trade and spawning a new breed of born-global enterprises. Nevertheless, trade costs and restrictions remain which impact SMEs disproportionately. The increasingly complex trading environment requires whole-of-government approaches to address SME constraints in internationalising, including access to information, skills, technology and finance, as well as trade facilitation and connectivity.