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2017/SOM3/CTI/WKSP5/007

Pacific Alliance: Micro Small and Medium Enterprises in the Pacific Alliance

Submitted by: Chile

Workshop on Free Trade Area of the Asia-Pacific

Building Blocks: The Pacific Alliance Contribution to APEC Work in Services, MSMEs and Trade

Facilitation Ho Chi Minh City, Viet Nam

26 August 2017

PACIFIC ALLIANCE:MICRO SMALL AND MEDIUM ENTERPRISES IN THE PACIFIC ALLIANCE

Marcia Banda M.A.Pacific Alliance Department

General Directorate of International Economic RelationsMinistry of Foreign Affairs

2017

01 Background MSME in the PA01 Background MSME in the PA02 Incorporation of MSME in the Pacific Alliance

03 Challengesof theM SMEs in the Pacific Alliance

PEOPLE

GOODS

SERVICES

CAPITALS

PACIFIC ALLIANCE

DIRECON01 STRENGTHEN ORIENTATION TOWARD ASIA PACIFIC

DECLARATION: Priority SME

December 2011, Mérida1st BUSINESS ROUNDSHOW

May 2013, Cali

TECHNICAL GROUP OF SMALL AND MEDIUM ENTERPRISES

June 2013, Cali

27 TECHNICAL

GROUPS

PACIFIC ALLIANCEBACKGROUND MICRO SMALL AND MEDIUM ENTERPRISES

The Presidents emphasized the importance of small and medium-sized enterprises asengines of economic growth and job creation, and instruct to define supportmechanisms to ensure that they benefit from the opportunities offered by the PA

4 COUNTRIESWITH THE BEST

BUSINESSENVIRONMENT IN

LATAM(Doing Business 2016)

55%Of the employment in the

region (average)

55%Of the employment in the

region (average)

37% GDP (average)

37% GDP (average)

PACIFIC ALLIANCEMSME IN PA COUNTRIES

PACIFIC ALLIANCEBIGGEST OBSTACLES TO GROWTH OF MSME IN THE PA COUNTRIES

• Many MSME have difficult to have resources to start orcontinue a business.

Access to Funding

• Just few of the MSME have exported

Internationalization

• MSME do not face the same issues of the bigger companies

Representativiness

PACIFIC ALLIANCEBIGGEST OBSTACLES TO GROWTH OF MSME IN THE PA COUNTRIES

• Procedures could be difficult toaccomplish for the MSME

Regulations

• To start a business you have to goto different institutions

Paperwork

02 INCORPORATION OF THE MSME IN THE PA

01 BACKGROUND MSME IN THE PACIFIC ALLIANCE

03 CHALLENGES OF THE MSMEs IN THE PACIFIC ALLIANCE

MSME CONFERENCES

EXPORT FACILITATION

DEVELOPMENT CENTERS

CAPITAL FUND

REGIONAL OBSERVATORY

BUSINESSROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCEPROMOTE MSMES INCORPORATION

CAPITAL FUND LAB4+ TOURISM

ROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCEMSME CONFERENCES

Teaching about the advantages ofthe Free Trade Agreement(Additional Protocol) of thePacific Alliance.More than 12 Seminars indifferent regions of our countries.

DEVELOPMENT CENTERS

CAPITAL FUND LAB4+ TOURISM

ROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCEEXPORT FACILITATION

Distinctive logo, "ExportaFácil" ofthe Pacific Alliance. Postallogistical operators of membercountries will have this logo.Benefit of MSMEs for thefacilitation of international trade.

CAPITAL FUND LAB4+ TOURISM

ROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCEDEVELOPMENT CENTERS NETWORK

Platform for technical assistance services.

Expand the set of resources available forbusiness development.

Improve access to business advisory servicesfor entrepreneurs by providing a networkingbusiness across the hemisphere.

Promote and support job creation in MSMEsand encourage greater trade between them.

Encourage alliances and productive linkagesbetween companies of the PA.

DEVELOPMENT CENTER NETWORK OF THE PACIFIC ALLIANCE

CAPITAL FUND LAB4+ TOURISM

ROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCECAPITAL FUND

To facilitate the financing and investment ofMSMEs and enterprises, in order to contributeto their growth and competitiveness by ensuringthat they benefit from the opportunities offeredby the Pacific Alliance. The implementation ofthe Fund was carried out with the collaborationof IDB-FOMIN and will be administered by AngelVentures of México.

CAPITAL FUND LAB4+ TOURISM

ROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCEREGIONAL OBSERVATORY MSME

Is a space of effective cooperation thatpromotes access to information relevantto entrepreneurs, will combine theexperience of Chile, Colombia, Mexicoand Peru, in entrepreneurship issues forthe strengthening of public policies andregional development

https://alianzapacifico.net/observatorio-regional-pymes/

CAPITAL FUND LAB4+ TOURISM

ROADSHOWS

04 PROMOTE SMEs INCORPORATION PACIFIC ALLIANCEBUSINESS ROADSHOWS

V Business Roadshows, 28 & 29 august 2017Pereira, Colombia

2013: Cali, Colombia

2014: Puerto Vallarta, México

2015: Paracas, Perú

2016: Santiago, Chile

4000 meetings

1200 visitors

600 Enterprises

01 BACKGROUND MSME IN THE PA

02 INCORPORATION OF THE MSME IN THE PA

03 CHALLENGES OF THE MSMEs IN THE PA03 CHALLENGES OF THE MSMEs IN THE PA

Continue working for MSME in the Pacific Alliance.

PACIFIC ALLIANCECHALLENGES OF THE MSMES IN THE PA

Public Policy Index (OECD), which will serve as an input for the development of actions to improve policies in member countries.

Technology Platforms for Business Procedures:Simplification and digitization of requirements and procedures.

Entrepreneurial Education Program for young people to generate an entrepreneurial culture in them.

DIRECON

Canada

Singapore

Australia

New Zealand

ASSOCIATED STATE

The State with which all Parties tothe Pacific Alliance FrameworkAgreement celebrate and bring intoforce a binding agreement of highcommercial and economicstandards that contributes to theachievement of the objectives ofthe Pacific Alliance FrameworkAgreement.

On September 2017, PA chiefnegotiators and chief negotiatiorsfrom Australia, Canada, New Zelandand Singapore will hold their firstmeeting to agree on the Terms ofReference (TdR) of the negotiation.

PACIFIC ALLIANCENEGOTIATIONS

DIRECON

Canada

Singapore

Australia

New Zealand

MSME issues

Terms of Reference firthe negotiationsinclude the MSMEissues in terms ofcooperation andforward.

PACIFIC ALLIANCEMSME ARE INCLUDED IN NEGOTIATIONS

THANK YOU

Marcia Banda M.A.Pacific Alliance Department

General Directorate of International Economic RelationsMinistry of Foreign Affairs

2017