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WUSME: Towards a new strategy for crises prevention and to create more SMEs and jobs

Guest post by: Norbert Knoll von Dornhoff

Article Overview: 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.

WUSME: Towards a new strategy for crises prevention and to create more SMEs and jobs

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. Due to the crisis approx. 60 million more people, among them millions of small- and micro entrepreneurs, primarily in the less developed countries will be in poverty in the year 2010.

Economists are warning: 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.

WUSME President Terenzi is convinced: Micro financing has proven a critical tool in the fight for survival of SMEs 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 enterprise and in better nutrition, improved living conditions, and the health and education of their children. The following DECLARATION OF PURPOSE has been decided by WUSME - World Union of Small and Medium Enterprises

The adoption of a WUSME Action Plan and Programme to include but not necessarily limited to:

1. A commitment to support and assist, as appropriate, SME and -(inclusive of those enterprises referred to as handicraft and/or cottage industries) creation, development and growth including appropriate rural activities targeting such things as continuing viability and sustainability.

2. A commitment to promote and assist in the establishment of relevant branched support services providers as appropriate.

3. A commitment to working with this vital sector to build a global networking alliance among SMEs and appropriate government and private entities, agencies, institutions and individuals supporting and promoting the ongoing creation, growth and development of SMEs and related economic enterprises and endeavors.

4. A commitment to take action as necessary and appropriate in working to create and/or strengthen a working alliance between SMEs and those agencies, institutions, groups and individuals intended to offer and provide assistance in areas such as microcredit, currency transaction levies, SME expansion and development funding, etc.

5. A commitment to creating an oversight committee dedicated to identifying and implementing best practices thereby assuring ongoing quality and continuing business improvement for the Union as well as those entities and individuals it actively supports and promotes.

6. A commitment to focus on Micro- and Small agribusiness in 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 tof 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 SMEs in the agribusiness will have priority for WUSME's Action Plan.

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Article Tags: agribusiness, crises, enterprises, micro finance, prevention, sme, union, world, wusme



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