Report: The Productivity Challenge In Financing Inclusive And Sustainable Growth
Small and medium sized businesses’ ability to participate in international markets and global value chains has not been fully developed. A new report, from Business at OECD and B20 and sponsored by the SME Finance Forum, calls on G20 leaders to follow four core recommendations to this end:
- Pursue balanced reforms that promote productivity, economic growth and stability.
- Foster interoperable global regulatory frameworks, and commit to consistent implementation through coordination and consultation, supported by independent impact assessments both pre and post implementation.
- Develop digital policies and strategies aimed at facilitating SME growth that eliminate cross-border differences.
- Maximize data access and information sharing through digital platforms for a coordinated response to global challenges: cyber security, the digitalization and the transition to a low-carbon economy.
Gianluca Riccio, Chair of the B20-Business at OECD Roundtable on SMEs and GVCs said, “OECD research shows us that SMEs, and especially new and fast-growing businesses, still face challenges in meeting their full productivity and employment potential. To tackle this issue we urge coordinated action between G20 Presidencies, supported by input from the respective B20 communities.”
The report builds on the findings of a high level seminar held at the OECD Headquarters in Paris in May 2018, as a joint initiative between Business at OECD and B20 Argentina.
“G20 leaders must do more to strengthen cross-border coordination and remove artificial barriers to help improve the business and financing environment for SMEs or we risk missing out on their productivity potential,” said Russel Mills, Secretary General, Business at OECD. “The fragmentation of domestic and cross border regulation, alongside access to finance and the challenges of the digital transition, remain major barriers to growth for SMEs worldwide.”