Dr. Gian Franco Terenzi, President WUSME
Actions for Crises Prevention and Development of Small and Medium Enterprises -SMEs
Currency Transaction Levy as a source for micro financing of SMEs in developing countries
Delegates of SMEs supporting organisations from more than 50 Countries in Africa, Asia, Europe, Latin America, USA, Russian Federation, among them Government Agencies, Chambers of Commerce and Industry, Women Entrepreneurs Organisations and Banks participated in an International Conference in San Marino 21st to 23rd April 2010, hosted by the RSM Government. Main target: The foundation of the first World Union, comprising organisations, finance institutions and experts specialising in stategies and actions for the development of SMEs world wide.
According to recent estimations of the World Bank, we have world wide approx. 500 million formal and informal entrepreneurs, 99% of them SMEs including Micro-Entrepreneurs. The number fluctuates with the ups and downs of the economic cycles. Though since the begin of this year, a significant rebound of the world economy can be felt, it has not yet become a recovery.
Current Crisis: Millions of Small- and Micro Entrepreneurs in the poverty trap
Due to the crisis approx. 14 million more people, among them millions of small- and micro entrepreneurs, primarily in the less developed countries will be in poverty in this year 2010.
Many of the achievements in recent years made to facilitate business of SMEs in the world, to reduce poverty in less privileged economies have seriously been jeopardised by shrinking demand for SMEs export products, increasing prices for energy and food, falling commodity prices, significant reductions in foreign investment and a general liquidity shortage. The strong interdependence among the worlds' economies made this a literally global economic crisis and human tragedy. "However, we have no reason be too pessimistic", warned Gian Franco Terenzi, Chairman of the Conference and elected President of WUSME the participants. " We can already see a light blue stripe on the horizon as economies are starting to recover, as our entrepreneurs are again back to business with new grand ideas and innovations: Green industries, new waste to energy and environment protection technologies, health care facilities, products and services, fight against the climate change, ago-industry are only some examples of many others."
Path breaking findings: Entrepreneurs contribute measurably to employment and Gross Domestic Product - GDP (PPP)
Recent empirical research (Entrepreneurship and the Business Cycle,
Prof. P.D. Koellinger, and Prof. A.R. Thurik , Erasmus School of Economics, Erasmus University, Rotterdam), based on the Global Entrepreneur Monitor (GEM) reports and those of the World Bank could prove the first time in history that SMEs measurably contribute to employment and Gross Domestic Product (GDP/PPP). In business, SMEs represent an important source of innovation and for Governments they contribute to wealth creation and generate tax revenues. SMEs constitute an important source of local supply and service provision to larger corporations. Constraints of SME financing in times of crises are also the reason why entrepreneurs are forced to discontinue their businesses with all the negative impacts on employment and GDP growth", said Norbert Knoll-Dornhoff, Secretary of the Conference and Professor of Economy and Fiscal Policy of an US University.
The Transaction Levy and Micro Finance: The tools for crisis prevention and SME development
Knoll-Dornhoff's prediction at the conference: SMEs cannot rely alone on Governments help and financial support in times of crises. Faced with huge budget deficits and public anger, almost all counties in the world, including the US and the Countries of the European Union will have to impose a financial transaction levy soon, based on the proposal of the Nobel Price laureate James Tobin. The revenue generating potential of a levy is tremendous. A tiny levy rate 0.005 would generate proxy. $15 billion per year, of which a substantial amount could be allocated to promote international economic development and prevent Mmes from bankruptcy in times of financial crises. A pilot CTL pilot project initiated by WUSME shall now prove the feasibility of a CTL on a voluntary basis agreed between Governments and local Banks.
President Terenzi is convinced: Micro financing has proven a critical tool in the fight for survival of Mmes in times of a crisis and for further development. Access to a range of micro finance services, savings, loans, and money transfers— enables poor families to invest in enterpriseand in better nutrition, improved living conditions, and the health and education of their children. Micro enterprises and small businesses account for the major share of the private sector and employment in many developing countries. "Immediately after the registration of WUSME we will send Delegations to the International Finance Corporation of the World Bank to the EU and to the Grameen Bank of Nobel Price Winner Proof Muhammad Junes with the goal to receive support for the new Micro Finance Enhancement Facility of WUSME", said Chairman Terre.
Commitment to SME - Agri-Industry
WUSME will also focus on Micro- and Small Agribusiness in Africa, Asia and South America as an important complementary strategy to the existing approaches being followed for the structural transformation, technological upgrading and economic diversification of economies. Agribusiness is the key determinant of overall economic growth and poverty reduction in most developing Countries. The accelerated development of agribusiness will benefit a large majority particularly of the population in most countries of Sub-Saharan Africa, and it will enhance the well-being of both producers and consumers, generate employment, income and food security and contribute to solve the problem of increasing immigration and emigration of the local population. Access to Micro-Financing for Mmes in the ago-industry will have priority for Use's Action Plan.
Prof.Dr. Norbert W. Knoll von Dornhoff
web:
wus.homestead.com
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