UNITED

NATIONS

E

Economic and Social

Council

ECONOMIC COMMISSION FOR EUROPE

Distr.

GENERAL

OPA/AC.20/2

16 January 2001

ORIGINAL: ENGLISH

COORDINATING UNIT FOR OPERATIONAL ACTIVITIES

REGIONAL ADVISORY SERVICES ON ENTREPRENEURSHIP

AND SMALL AND MEDIUM-SIZED ENTERPRISES

Note by the secretariat

1.	The present note provides an overview of the activities of the Regional Advisory Services of the United Nations Economic Commission for Europe (UN/ECE) on Entrepreneurship and Small and Medium-sized Enterprises (SME), directly related to the activities of the Working Party on Industry and Enterprise Development and its Teams of Specialists.

2.	At its inaugural session, held on 31 October -1 November 2000, the Working Party took note of the interim programme of work of the Regional Adviser on Entrepreneurship and SMEs and requested a provisional programme of work for 2001 – 2002 to be presented at its second session.

3.	In order to have a complete picture related to operational activities, the document below also includes activities related to SME development carried out by the Regional Adviser on Gender and Economy as well as the Technical Adviser who acts as the CEI Focal Point at the UN/ECE.

4.	The UN/ECE Strategic Goals of the Programme of Work for the Development of SMEs in Countries in Transition and Emerging Market Economies (further as CITs) aims at accelerating and assisting the creation of a sustainable supportive business environment for SMEs (policy and legislative framework and supportive infrastructural institutional and organisational elements, such as business support institutions, access to financial resources and information, access to technology and technology transfer, equal opportunities for women entrepreneurs, etc.).

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5.	The operational activities target the macro-institutional and organizational (micro-) arrangements as well as the dimensions (e.g. gender) of the institutional system in order to accelerate the creation of an environment which is conducive for entrepreneurship, in general, and SME development, in particular. Such an approach also allows to halt and reverse some disturbing development trends, such as growing poverty and social inequalities.

6.	In addition, a cluster approach has been employed to address specific needs of SMEs, including the lack of the technological capacity and capabilities.

7.	The SME related operational activities are basically implemented by the Regional Adviser on Entrepreneurship and SMEs. Some of the activities are provided by the Regional Adviser on Gender and Economy, while other ones are the task of the CEI Focal Point.

8.	The Regional Advisory Services on Entrepreneurship and SMEs are developed in close relationship with the Working Party on Industry and Enterprise Development (WP.8), creating strong synergies within the UN/ECE in this area. Efforts will be oriented towards the creation of a unique platform of understanding the means and tool of sustainable entrepreneurship development, among other by elaborating sub-regional Declaration on SMEs, especially within the framework of the Central European Initiative (CEI), the Black Sea Economic Cooperation (BSEC) as well as of the Commonwealth of Independent States (CIS). The CEI Declaration on SMEs adopted by the Ministers of Economy on 24 November 2000 in Budapest during the CEI Summit will be also considered as reference in declarations and in advisory activities related to the implementation of SME policies at national and regional level. Ministerial Meeting on the future and support of SMEs in the BSEC countries will be held in May 2001 in Istanbul. Assistance will be also provided to the Chairman of the Advisory Board on Support and Development of Small Businesses in the CIS member States, Minister for Entrepreneurship and Investments of Belarus. This could lead to the elaboration of a comprehensive SME support guidelines for the all CITs and to the convening of a UN/ECE Ministerial Conference at the Palais des Nations at the end of 2002 or beginning of 2003. In this direction, special support will be given to the organization of the next CEI Summit Economic Forum which will take place in November 2001 in Italy.

9.	It is planned to organize forums on best practices on national policies and programmes of promotion of entrepreneurship and SMEs in CITs as well as expert meetings on benchmarking of various aspects of supporting and operating SMEs. The UN/ECE Coordinating Unit for Operational Activities will organize these events in cooperation with the UN/ECE Committee for Trade, Industry and Enterprise Development as well as with other United Nations agencies and international and regional organizations:

(a)	UN/ECE organized a Forum on "Best Practice in National Policies to Support Entrepreneurship and SMEs in CITs: The Hungarian Experience" held on 1 November 2000 and an Expert Meeting on "Best Practice in Business Advisory, Counselling and Information Services" held on 2-3 November 2000 in Geneva. The events were attended by nearly 150 high-level policy makers and experts from 33 countries and 10 international organizations (see document OPA/AC.16/5).

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(b)	In view of the great interest, triggered by the UN/ECE publication on "Best Practice in National Policies to Support Entrepreneurship and SMEs in CITs: The Czech Experience" (OPA/AC.11/1) issued in 2000, a similar activity will be implemented through the publication of a paper "Best Practice in National Policies to Support Entrepreneurship and SMEs in CITs: The Hungarian Experience", based on the Forum.

(c)	The Coordinating Unit for Operational Activities is preparing a Forum on "Best Practice in National Policies to Support Entrepreneurship and SMEs in CITs: The Polish Experience" to be held on 24 October 2001 at the Palais des Nations.

(d)	In 2002, a forum on best practices will be devoted to other emerging market economies. Preliminary consultations have been carried out with the Governments of the Baltic States and Slovenia.

(e)	The subject of the Expert Meeting to be held in 2002 will be determined, following the similar event of the year 2001.

10.	Some operational activities for SME development have to be oriented to respond to special requirements of governmental authorities, national SME infrastructural institutions and non- governmental organization to promote sub-regional, national and local entrepreneurship. Assistance should be provided in support of the following activities:

(a)	Promotion of technology transfer between SMEs in CITs and those in advanced market economies. The Regional Adviser on Entrepreneurship and SMEs will assist in elaborating a working programme for the implementation of the Memorandum of Understanding signed between Greek, Russian, Turkish and Ukrainian Technology Transfer Centres in 2001; modalities and means will be searching how to extend the activities of this network to other UN/ECE member countries in 2001-2001.

(b)	The CEI Focal Point at the UN/ECE will continue to facilitate technology transfer through the coordination of specific technical cooperation projects, such as the CEI Agriculture Wholesale Markets Programme and advisory services within the CEI Project Opportunity Methodology. On investment promotion, database of project proposals on the Web is under development.

(c)	Assistance in increasing the competitiveness of SMEs through benchmarking and the creation of special business service institutions, e.g. quality development centres for the implementation of quality management systems and ISO 9,000 and 14,000 series standards.

The Regional Adviser on Entrepreneurship and SMEs as well as the Secretary of the Working Party on Technical Harmonization and Standardisation Policies will assist in organizing the BSEC Workshop on "Standardization and Quality Control for SMEs" to be held on 29-30 March 2001 in Istanbul.

An Expert Meeting on Best Practice in Creation of Quality Assurance Systems for Enhancing the Competitiveness of Small and Medium-sized Enterprises (SMEs) will be held on 25-26 October 2001 in cooperation with the Working Parties on Technical Harmonization and Standardization Policies as well as on Industry and Enterprise Development(see document OPA/AC.18/1).

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(d)	Providing policy advise in the creation of non-conventional financial intermediaries for SMEs, e.g. credit guarantee schemes, business angels, venture-capital, etc.

(e)	Assistance in developing self-employment and alleviating poverty through microcrediting. In this respect, the following activities are envisaged:

-	The Coordinating Unit for Operational Activities suggests a proposal for new activities of the WP.8 oriented towards the reduction of poverty and social inequality (see document OPA/AC.20/1) through the creation of an integrated Team of Specialist on Entrepreneurship and Poverty. Further operational activities will be decided, based on the outcome of the second session of the WP.8.

-	The CEI Focal Point is assisting in the development and implementation of a microfinance project for crisis affected areas in Albania. Elaboration of a similar project is envisaged, at the request of the Government of the Republic of Moldova.

-	The Regional Adviser on Entrepreneurship and SMEs and the CEI Focal Point at the UN/ECE will assist in organizing the BSEC Workshop on "Poverty Alleviation through Microcrediting and Family-based Entrepreneurship Development" to be held in September 2001 in Tirana (Albania).

(f)	Facilitating the development of family businesses, home-based entrepreneurship and the promotion of business activities of disabled people and the youth.

11.	The UN/ECE activities related to the promotion of women's entrepreneurship are stemming from the specific elements of the political and economic environment, which are particularly affecting women in the transition economies. The implementation of the programme is the responsibility of the Regional Adviser on Gender and Economy in cooperation with the Regional Adviser on Entrepreneurship and SMEs.

12.	UN/ECE has created a Regional Network to Support Women's Entrepreneurship, which will be an informal forum for the discussion of women's entrepreneurship via Internet. The purpose of the network is to promote research, exchange of experience and the identification of best policies to promote women's entrepreneurship in the ECE region. Establishing of the network is also intended to increase gender sensitivity of the ECE programmes in the area of SMEs. The address of the Network is: http://www.unece.org/oes/gender/Welcome.html.

13.	The Coordinating Unit for Operational Activities has launched the Project on "Portrait Gallery of Excellent Women Entrepreneurs in CITs". The project aims at raising awareness of the need to provide a support for women's entrepreneurship in the ECE region as a whole. The Portrait Gallery is developed by the Regional Advisor on Entrepreneurship and SMEs and located on his web-site at http://www.unece.org/indust/sme/gallery.htm. Having sufficient number of excellent women entrepreneurs, it is envisaged to invite them in 2002 to the Palais des Nations and review the situation of women entrepreneurs in the transition economies, their role in the economy and their vision at the dawn of the 21st century.

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14.	The UN/ECE organized a Regional Workshop on Gender and Labour Market held on 15-17 January 2001 in Warsaw, Poland. The Workshop gathered over 80 participants from eastern Europe, the Baltic States as well as from Russian Federation, Kazakhstan, Uzbekistan and other CIS countries. The participants evaluated activities of international organizations during the ten years of transition and proposed further actions to increase women's employability. Promotion of women's entrepreneurship was accepted as an important avenue to reach this objective. The Workshop was organized in cooperation with UNIFEM and the World Bank.

15.	Annual reviews of best practices in national policies to support entrepreneurship will include a section on women's entrepreneurship.

16.	Within the framework of the Black Sea Economic Cooperation Organization the Regional Adviser on Entrepreneurship and SMEs and the Regional Adviser on Gender and Economy will assist in organizing the BSEC Workshop on "Women entrepreneurship" jointly with BSEC PERMIS and the German KAF to be held on 11-12 June 2001 in the Russian Federation.

17.	Contacts have been established with the regional network Central European Business Women's Academy (CEBWA). UN/ECE will explore the possibility to assist CEBWA in expanding its activities. A possibility to organize a workshop in 2001, perhaps in the Federal Republic of Yugoslavia, on the financing women's businesses is being considered.

18.	UN/ECE will include in its work programme the organization of Round Table discussions on Women's Entrepreneurship during the forthcoming 4th and 5th CEI Summit Economic Forums in 2001 and 2002.

19.	Furthermore, UN/ECE has been elaborating a specific approach to development of SMEs in sub-regional groupings and initiatives (BSEC, Baltic States, CEI, CIS, SECI, and Stability Pact). UN/ECE aim is to develop a large network of all categories of stakeholders (public authorities, professional associations, business and NGOs) which are involved in the development of entrepreneurship in order to disseminate knowledge and information as widely as possible.

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