In 2019, the Think20 (T20) is convening in Japan under its G20 presidency. Together, the world’s leading think tanks will drive policy innovation to help G20 Leaders address pressing global challenges and seek a sustainable, inclusive and resilient society. EFI is present at T20, in particular in Task Force 9: SME Policy faced with Development of Financial Technology.
Small and medium-sized enterprises (SMEs) account for more than half of formal employment globally and are crucial for stimulating improvements in productivity. However, many SMEs face challenges related to their sizes, limited resources, market access and relationship with larger enterprises. The SME Task Force will discuss possible policy recommendations to address those challenges. Policies to raise entrepreneurship awareness, supporting diversified entrepreneurs, and smoothing processes for business start-up as well as business transfer will build an eco-system that allows easy entry and exit of start-ups to promote future economic growth and employment. Also, sustainable growth of start-ups calls for policies that address their internal constraints of resources, such as policies to build network among universities, research institutes, and companies to foster R&D and innovation, especially for strongly motivated SMEs; to utilize new technologies and innovative business models to improve SMEs’ access to financial services/resources; to improve labor mobility and promote investment in human capital; to reduce trade and investment barrier for SMEs to integrate into global markets.