1 IT Usage for Direct Exports by SMEs China-Mexico-Colombia André Kublik Santiago de Chile, 23 November 2004

2 Similarities Traditional ways to export Low number of export-oriented companies B2B more than B2C (B2B SMEs suppliers-BIG companies) Websites: shop window,image and information

3 Size Assets No of Employees Microless than USD less than 10 employees Small between and USD between 11 and 50 employees Medium between and USD between 51 and 200 employees Definition of SMEs Sector ManufactureTradeServices Size Micro Small Medium BigMore than 250More than 101 Colombia México Enterprises with employees below 500 are considered small enterprises, wider range exists for medium enterprises, which generally employ 500 to 3000 China

4 IT usage inside SME companies More focussed on : Comunication: -phone, Internet Administrative-financial management processes Production: easier to measure its impact Sales-Marketing “Entrepreneurs see technology as an investment, but more as a way to reduce costs than as a generator of business opportunities with added value”

5 WAYS TO EXPORT Traditional: “enterprises are still accustomed to traditional trade method” Attending fairs “Export channel with fairs still acting as a main method in developing export market” Face-to-face “communication is required in setting up real cooperative partnership and long-term business relationship.” “Communication through Internet by enterprises becomes part of business mode, but not all the business will be conducted through Internet.” “Trade conducted through internet is limited to existing clients of established business relationships” E-business: the percentage of real e-business application is very low

6 FACTORS THAT SLOW DOWN E-COMMERCE DEVELOPMENT AND GROWTH  Expensive and not very organized delivery services  The fear of carrying out economic transactions with credit cards, on-line security payments  The lack of on-line offered products and services without attractive prices regarding to the traditional place of purchase  Limited budget to set up e-commerce applications

7 Colombia 20% participation Mexico: In direct exports, SMEs have a minimal participation, the whole of Mexican exports, participation of 6.65 %, compared to % of the big exporting companies and % of in-bond industries ( maquiladora). EXPORTS PARTICIPATION

8 SITUATION  Low incidence in the exports of the SMEs  Little penetration and application of the e-commerce  IT usage more focussed on administrative and production aspects  Traditional ways to export  Lack of export incentives and promotion tools  Lack of information systems  Increasing use of ICTs to export

9  Set up e-commerce platform, Portals, Market Places  Improving access to information on business opportunities  Intrerregional networks  More access to long term credits (to invest in technology, marketing)  Training: promoting exports-technology  Fiscal incentives to promote e-commerce RECOMENDATIONS-SOLUTIONS