1st Roundtable of the OECD Digital for SMEs Global Initiative

BROAGENDA29 November 2019 | OECD, CC4

First roundtable on Digital for SMEs (D4SME)

■ What’s the issue?

Digitalisation is reshaping economy and society, holding the promise to enhance individual well-being, spur efficiencies and increase opportunities for many businesses and entrepreneurs. Digital technologies offer new opportunities for start-ups and established Small and Medium-sized enterprises (SMEs) to participate in the global economy, innovate and grow. Startups as well as large technological firms are taking the lead in the transformation, but there is a “missing middle” that is less represented in policy discourse that might be lagging behind, with implications for productivity and inclusive growth. Ensuring the uptake and effective use of digital technologies by traditional SMEs and entrepreneurs is central to unlock fully the potential of the digital revolution.

At the OECD Ministerial Meeting on Strengthening SMEs and Entrepreneurship for Productivity and Inclusive Growth (Mexico City, 22-23 February 2018), Ministers and high level representatives from over 50 countries and 12 international organisations and associations stressed the importance of “fostering conditions for SME adoption and diffusion of innovative and digital technologies, investment in complementary knowledge-based assets and digital security”. Participants asked the OECD to foster international cooperation, and inform discussions about the good framework conditions and policy practices in support of SME digitalisation.

■ About the Roundtable

The launch event will kickstart the OECD Global Initiative on “Digital for SMEs” (D4SME), with the following objectives:

To enhance understanding on how different types of SMEs can seize the benefits of digitalisation to innovate, improve competitiveness, participate in Global Value Chains and harness the ongoing and foreseeable transformations in business models and relations;

To promote knowledge sharing and learning among policy-makers, businesses, researchers and institutions at the global scale;

To offer insights to policy-makers and regulators for designing and implementing better policies to foster SME participation in the digital and globalised economy.

The closed-door meeting will gather more than 50 representatives from governments, regulators, business, SME associations, incubators and international organisations. Participants will sit at the Roundtable to discuss under Chatham House rules opportunities and challenges related to the digitalisation of SMEs in four sessions. Each session will be kickstarted by an OECD government and a digital small or medium-seized enterprise showcasing their experience to introduce the policy topic, followed by an open discussion. Participants to the First Roundtable will also take stock of the insights emerged during the day and the main global development in the area to co-define the next steps of the OECD D4SME initiative.

For more information, visit our website: oe.cd/D4SME

Join the conversation on Twitter @OECD_local #D4SME

Contact

Marco BIANCHINI, Economist | Marco.BIANCHINI@oecd.org OECD Centre for Entrepreneurship, SMEs, Regions and Cities

AGENDA | 1st Roundtable on SME Digital Transformation and Empowerment

29 November 2019 | OECD Headquarters

09:00 –09:30 Registration & welcome coffee

09:30 – 10:00 Opening Remarks

Angel Gurría OECD Secretary-General

CHAIR Minister Hon Stuart Nash Minister of Small Business, New Zealand and Chair of the OECD Digital for SME initiative

10:00 – 11:15 Session I: SMEs’ access to digital infrastructures and platforms

What digital infrastructures for SMEs?

Access to digital assets is critical for firms to compete in a knowledge-based economy. On the supply-side, connectivity to high quality and affordable communication infrastructures and services, data transfer, management and protection, and access to digital platforms and knowledge networks have become strategic. On the demand side, SMEs need to have the skills to identify, access and manage technology, data and networks to unlock the potential of the digital transition.

The session will discuss how access to digital infrastructures could be enlarged to include most SMEs, and how the platform economy, unlocked by such access, is playing a key role in scaling up SMEs’ digital skills and networks for knowledge, trade, and finance.

Key Questions

How digital platforms can offer the simplest and cheapes path to digitalisation for SMEs? And what could regulators and policy makers do to ensure the process is fair and inclusive?

How do incubators and accelerators can support the diffusion of digital technologies among startups and traditional SMEs?

11.15 - 11.45 Coffee Break

11:45 – 13:00 Session II: Artificial Intelligence for SMEs

How will A.I. impact SMEs?

SMEs and entrepreneurs might achieve considerable improvements in decision-making by leveraging data analytics techniques to increase productivity. However, there are challenges to be overcome, as the lack of digital awareness can lead to mistrust in digital technology and to low adoption as risks and benefits are not clear. Moreover, lack of financial resources, data management experience and talent, constitute significant barriers.

SMEs must also operate in an environment in which the use of machine learning algorithms by large firms is becoming pervasive and cloud-based A.I. services offered by large players might become crucial for their development in business functions as marketing, customer service and sales.

The session will discuss the recent development in the field, including the relevance of the OECD Principles on A.I for SMEs, the impact of government policies and of large digital infrastructures on the evolution of the technology for SMEs.

Key Questions

Which uses of A.I. solutions could have the most relevant impact on SMEs’ business models and practices?

Most SMEs do not have the resources to develop their own A.I. systems and services, so which could be the best solutions to ease their access to this technology?

What would be the impact of the implementation of the OECD A.I. principles on small and medium enterprises?

13:00 – 14:30 Lunch Break

14:30-15:45 Session III: Blockchain for SMEs and entrepreneurs

Is the blockchain revolution a game changer for SMEs?

Blockchain and in general Distributed Ledger Technologies (DLTs) are one of the most disruptive innovations currently shaping the global economy. DLTs are expected to play an increasing role in the future, also by opening up new opportunities for SMEs and entrepreneurs to innovate their business model, access financing and global markets.

The session will discuss the most important blockchain services that can improve SMEs’ access to finance and competitiveness, along with the regulatory and policy choices that can impact the development of the sector, as well as the possibilities that the diffusion of this technology could open up for traditional SMEs.

Key Questions

What are the opportunities and what are the challenges for SMEs and entrepreneurs to adapt their business models and adopt blockchain solutions?

Can blockchain-based services assist SMEs to operate more efficiently, transparently and with more trust in global value chains?

What role can governments and regulators play to support SMEs and entrepreneurs in their struggle to stay ahead of the curve in this emerging technological area?

Which policies or regulatory reforms have proved effective to enhance the uptake of this technology in the business sector? Are innovative policy and regulatory approaches emerging? And what are the strategies to implement such policies?

15:45 – 16:15 Coffee Break

16:15-17:30 Session IV: Fintech for SMEs

How is Fintech transforming the SME financing environment?

Financial inclusion and traditional SME lending are deeply impacted by the many digital applications that go under the definition of “Fintech”. The financial sector has been one of the fastest in digitalising its services, due to the immediate gains in terms of flexibility, cost reductions, timeliness and the strong competition dynamic. Many innovative and disruptive solutions have been introduced in particular for banking and payment services (e.g. mobile banking, Chip and contactless cards, Blockchain/Distributed Ledger Technologies). Traditional financial institutions like banks and insurance companies have not hesitated to create partnerships or acquire Fintech start-ups to keep up with the rapid evolution of the market.

Financial regulations have played an important role in lowering the barriers to entry for the market to innovative firms. SMEs and entrepreneurs. Accordingly, they have benefited by obtaining easier access to financing and lower costs. Nevertheless, challenges remains in terms of guaranteeing that transparency, consumer protection and appropriate AML/KYC practices are applied by the new players.

Key Questions

How can fintech solutions make it easier for SMEs to access credit and financial services?

What are the regulatory issues for the wide diffusion of fintech services among the SME population?

17:30 – 18:15 Conclusion & the Way Forward

What’s the way forward for the D4SME initiative?

Taking stock of the insights emerged during the day and the most important development at global level in this area, participants will reflect on the outcomes of the discussion and co-define the next steps of the OECD Global Initiative on D4SME.

18:15 – 20:00 Cocktail in the OECD Château

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