Sao Paulo, 28 May 2015 International workshop on standardization and small business

AGENDA About Danish Standards in figures SMEs and standardization in Denmark The DS SME project The future for SMEs in standardization in Denmark Standardization and SMEs - the experience of Danish Standards

About Susan Redder Bruun NOW: Senior consultant at DS since 2013 Responsible for SME activities Responsible for training activities Consulting in ISO 9001 BEFORE: Owner of a training company with 30 employees for more than 20 years Business development in both non- profit and for profit companies Executive MBA from Henley Business School, UK

Danish Standards Established in 1926 Structured as a non-profit commercial foundation 150 employees 3 business units – Standardization – Publishing and selling standards – Consulting and training

Danish Standards in figures Annual turnover: BRL 64 million / Euro 21 million Performance contract: BRL 10 million / Euro 3 million

Why is the focus on SMEs and standardization? Less than 1% of private companies employs more than 250 people

The majority is micro companies

Activities dedicated to SMEs DS University – Free courses on ”Introduction to standardization”, “The rules for European/International Standardization”, ”CE-marking for SMEs and entrepreneurs” Translations and standards starter packs Implementation handbooks aimed at SMEs Consulting on strategic use of standards – free of charge Micro companies (less than 10 employees) get 50% discount on the fee in national mirror commitees

And we create partnerships with… Regional business development centers The Confederation of Danish Industries The Danish Construction Association Trade organisations Job centers

SME – activities in the 2015 performance contract 1.Easier and less expensive for SMEs to use international standards – BRL 3,5 million / EURO 1 million 2.Increased export and productivity for SMEs through international standards – BRL / EURO Increased competition and efficient market surveillance through international standards – BRL 1,1 million / EURO Increased Danish influence on international standards – BRL 6.5 million / EURO 2 million

Center of Economic and Business Research Impact assessment of businesses use of standards

Through the use of standards businesses have % more export

Through the use of standards businesses have % more added value

Through the use of standards businesses are % more productive

Through the use of standards businesses have % more employees

”SMEs create growth through standards” Financed by the Danish Ministry of Business and Growth as part of the performance contract for Segments visited and number of businesses visited Trends and tendencies Drivers and barriers The SME project ….face-to-face consulting

130 face-to-face meetings Including 34 industrial companies, 10 from the energy- and climate industry, 14 electronic companies, 12 from the food industry, 27 health- and welfare companies and 33 mixed companies

ALMOST NONE! Which aspects do SMEs have in common?

Industrial companies – the most standard savvy Machines – with and without automation 34 meetings – by and large all B2B Both small and large numbers of employees Process equipment with semi- automatic and fully automatic equipment. Very standard proficient B2B = 7 are ISO 9001 and 2 are also ISO certified Many specific customer standards/requirements

Health and welfare Cosmetics private label Mobility aids Dental 27 meetings – predominantly smaller companies up to 20 employees 4 = B2C, 11 = B2B, 12 = B2P B2C og B2P = no or little interest in standards B2B = 4 were either ISO 9001 or ISO certified

Food Food for retail Machines / parts for food production 12 meetings – predominantly smaller companies up to 20 employees 6 = B2B(retail), 6 = B2B(industry) B2B (retail) characterized by BSC, IFS, Global GAP and 2 are ISO B2B (industry) 1 is both ISO 9001, and certified

Additional points…. In 51 out of 130 companies, ISO 9001 was mentioned. 22 were certified and 20 were seriously considering certification. Most frequent combination was ISO 9001 and ISO companies thought participation in national mirror committees seemed interesting, but didn’t know much about it In industries where business is made with public and private customers, they meet no demand for standards 1 company thought DS should be closed and replaced with a branch of DIN in DK!

5 general conclusions on the SME project Competencies Compliance Knowledge Resources Strategy

A little more about competencies Standards are cumbersome and academic reading – far from the everyday live of an SME For employees in certain industries (in particular industrial companies) standards are impossible to read Need tools that make it easier to read and understand standards Need help to identify relevant directives and standards

A little more about compliance Driven by the market more than by legislation Businesses who are in compliance with the law, complain that there is a lack of regulatory control within their industry If regulatory control is carried out, the persons performing the control have inadequate competencies– too many white collar workers Public procurement has no demand for standards Public procurement doesn’t control the CE-marking of products

A little more about knowledge No or little knowledge of national mirror committees. Very little knowledge of management standards and their value Difficulties in identifying and translating relevant legislation in their area Very little knowledge of CE-marking

A little more about ressources Implementation of standards is too expensive Lack resources to hire external help ROI isn’t clear – especially with regard to management standards Profits are not proportionate to the investments Lack resources to be first-movers Standards must provide an economic yield very fast

A little more about strategy Strategy is not at the top of the agenda of SMEs Mostly SMEs act re-actively with regard to standards – they don’t see them as a strategic tool

Drivers and barriers to standards Customer demands License to operate Increased earnings or fear of loosing Legislation – especially if pointed out by customers Drivers Ressources Time and economy Competencies Don’t know how Value is not obvious Bad business case Barriers

The future for SMEs and standardization in Denmark

”Growth through increased use of international standards” Danish governments’ newly launched strategy for standardization

The ambition of the strategy 6000 more companies!