DDG Zhang: Digital innovation key to expanding trade prospects for small businesses

Speaking at the MSME Group's third meeting of its Joint Solutions Lab, DDG Zhang cited the results of a 2023 survey showing that two-thirds of businesses intend to expand internationally, and 80% of micro entrepreneurs are already selling to more than one economy. 

"This clearly shows how technology is remaking global trade by empowering business of all size to reach custom worldwide," he said.

Noting the ongoing discussions among members on WTO reform, DDG Zhang said these discussions should be client-centred, focusing on the needs of MSMEs to improve their business ecosystems. He also said members should use innovative and creative approach like the Joint Solutions Lab to share knowledge and contribute to the reform discussions.

The 10 November event focused on the theme of "Digital Innovation Ecosystems and Scaling Digital Trade Solutions for MSMEs." The event brought together policymakers, government representatives and a Geneva-based small business leader to discuss policy that can support MSMEs at the core of today's digitally focused global trade.

Ambassador Lominadze of Georgia, the MSME Group member that initiated the Lab discussions, shared Georgia's experience in digital transformation and MSME empowerment. He highlighted reforms which included streamlined business registrations, digital customs and tax systems, and entrepreneurship support programs particularly benefiting women-led and rural enterprises.

Youlia Lozanova of the International Telecommunication Union highlighted growing policy gaps exacerbated by COVID-19, particularly due to siloed regulatory approaches ill-equipped to address innovations like artificial intelligence (AI). ITU promotes an ecosystem approach, integrating strategic foresight, open tech innovation, entrepreneurship support, experimentation, and comprehensive policy-ecosystem connectivity through its Innovation and Entrepreneurship Alliance for Digital Development, she said.

Martin Labbé of the International Trade Centre shared findings from the June ITC SME Competitiveness Outlook showing that 87% of SMEs using digital tools reported increased sales, and 84% reported cost reductions. He stressed however that the enabling environment remains challenging due to infrastructure affordability, regulatory frameworks, and digital skills.

Representatives from the private sector also offered their views.  Ana Ugulava from Enterprise Georgia detailed work aimed at bridging digital policy gaps and helping MSMEs enter international markets, while Usha Seturi from the Geo IG Forum described efforts in Georgia to improve connectivity through partnerships with government, regulators, and community networks. Sergio Estupiñán, co-founder of Swiss edtech startup Beekee, noted the ongoing challenge related to digital infrastructure and stressed that while AI can assist, it cannot replace the essential role of real-world organizational support.

Closing the Lab, MSME Group Coordinator and Barbados' Ambassador to the WTO Matthew Wilson summarized key takeaways for policymakers and stakeholders.  These included the continued challenge of Internet connectivity and access to finance, the need for a supportive regulatory and technological environment, the importance of investment by MSMEs in digital tools, and assisting MSMEs in assessing their needs.

The Informal Working Group, which met for the first time in March 2018, was set up to explore ways in which WTO members could better support MSMEs' participation in global trade.  The group has 104 member participants, with Cameroon becoming the latest member to join the discussions on 29 October.