- November 16, 2018
- Posted by: Anish
- Category: Feed
As per WTO, trade participation of SMEs in developing countries is low, with exports accounting for 7.6% of manufacturing sales, compared to 14.1% for larger firms. MSMEs account for 34% of exports on average in developed countries. There is a positive relationship between enterprise size and export participation, with lower rates of participation for micro enterprises (9%) and small enterprises (38%) than for medium-sized (59%) and large enterprises (66%).
In developing economies, indirect exports ((i.e. sales of goods through a third domestic party that exports) in the manufacturing sector of SMEs were estimated, on average, at 2.4% of total sales, a level 3 times lower than the estimated share of direct exports. Most manufacturing SMEs in developing countries have low levels of integration in global value chains, with few backward and forward linkages in production. In developed economies, the direct contribution of SMEs to domestic value-added exports is predominant over indirect exports.
Internationalization is often defined as the strategy adopted by firms engaged in overseas activities Internationalization may take various forms, namely:
- Direct exports
- Indirect exports
- Non-Equity contractual agreements
- Foreign direct investment (FDI) and other forms of equity agreements.
In developing economies, the availability of data on international trade by enterprise size is limited in many respects. For the most part, researchers must rely on a mix of enterprise surveys and administrative data, with all the compromises that using different data sources.
The development of electronic commerce as a means for firms to reach customers in overseas markets promises to dramatically expand export opportunities for SMEs if certain obstacles – including those related to information and communications technology (ICT) infrastructure, and to the legal and regulatory environment – can be overcome.
Electronic commerce expands opportunities for SMEs to participate in international trade. On average, 97% of internet-enabled small businesses export. Meanwhile export participation rates for traditional SMEs range between 2% and 28% in most countries.
Launching The Karavan Free Trade (KF Trade) platform for SMEs (India and Americas):
Karavan Free Trade is an Online B2B marketplace for SME’s (Small & Medium Enterprises) to conduct business globally and participate in the global value-chain (India and Americas). Our goal is to ensure a seamless process for exports/imports engaging in international markets and operating as a platform for greater future international expansion.
Our Vision is to provide end-to-end support to a business enterprise for conducting global trade (import/export) across varied industries and bridge the gap between business and authorities thereby realizing their true growth potential and help expand the business.
Role of Karavan Free Trade (KF Trade):
The platform will offer free insights and data points on the country’s macro situation, industry & sector classification, regulations & standards, and the potential of exports in targeted countries. Along with this get free access and posting of real-time business queries and listing of the companies on the KF Trade platform.
Additionally, KF Trade will offer services to Small Businesses in India and the Americas such as B2B matchmaking and leads + Regulations and Certifications + Logistics & Shipping + Digital Media + Export Financing.
Our Mission is to cut across the hurdles faced by Small businesses to export/import and provide our clients with ‘Trade Instruments’ to conduct business across borders in a fast, fair and efficient manner. More Power to Small Businesses.