S32a Role and responsibility of SME Chief Executives facing globalisation - 中欧社会论坛 - China Europa Forum

S32a Role and responsibility of SME Chief Executives facing globalisation

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- Preparatory documents for the workshops - meeting in Paris in July 2009

- China-Europa Forum catalogue

Workshop presentation

Chinese Proposal

From the 1940s on, the development of small and medium-sized enterprises (SMEs) never ceased, forming an unstoppable movement. The economic crisis of 1973 1975 in western world being a watershed event was followed by a rush in the rise of SMEs in America, Japan and Western Europe. In light of the varied roles SMEs play in creating jobs and technical innovations, governments support the industrial restructuring of SMEs with a series of beneficial policies in legislation protection, management, fiscal and financial support and technical aid, and at the same time mobilize all sectors of society to offer comprehensive services to SMEs.

Despite a short history in China, SMEs are gradually taking larger shares in national economy. The thirty years since China’s reform and opening up to the outside world have seen a series of profound changes in China’s economy. China’s socialist market economy has been improved. As state-owned enterprises (SOE) withdrawed from the competitive fields, private enterprises and foreign businesses slowly entered into some formerly monopolistic industries. Following the trend that state-owned enterprises retreat while private-owned enterprises advance, those vigorous SMEs in China have gained impetus leading to development of regional economy as well as growth in employment. Using their institutional advantages, the SMEs evolved into industrial clusters in market competition with large-scale companies. In the mean time, in the coastal areas of southeast of China, where SMEs are flourishing, civilian chambers of commerce (business associations) bourgeoned and refined simultaneously.

With the constant development of the SME, independent dominant value come into being after these business elites with awareness of innovation enjoyed high of economic status. In the course of social changes, they demanded emancipation from social forces so as to have more freedom in social and economic choices, thus boosting local economy and social dynamics as they develop.

How do we protect the vitality and vigor of newly born SMEs? How can they benefit from policies and local culture? In what ways do these enterprisers of SMEs maintain self-discipline and autonomy?

Moreover, how the development of local SME, in all its regional and cultural diversity, impact social beliefs and improve the local welfare system? With much concern, the question is how SME enterprisers push forward local democracy and civilian society, accumulate social capital, participate in regional integrated governance so as to contribute to vigor of the economy, politics, culture dynamics and the well-being of individuals?

Topics for debates

1.SMEs in the context of the current financial crisis and the importance of assisting SMEs.

2. SMEs and local innovation, to discuss the interaction between SMEs and social dynamics.

3.Female entrepreneurship.In a global economy of more than 50% women we need to change the perceptions of women in business.

4.SMEs in the context of global trade and investment negotiations.

5.SMEs’ and innovation in the context of rural development.

6.Corporate social responsibility and a need for greater equity.

About us

Chinese Prime Mover:XIN Wang,Director of Economic Observer Center of The Economic Observer,xinwang@eeo.com.cn

European Prime mover:Sharma Madi,Founder of the Madi Group, original.madi@tiscali.co.uk

Mediators:Jin Rui,Nankai University,cooljinrui@163.com

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Workshop’s news

  • Subject: Meeting of Madi Sharma and Prof Xin Wang in preparation of Europa-China Forum workshop, July 2010 – SME Managers Workshop S32a

Following the cancellation of the Europa-China Forum conference in Ningbo and Hong Kong earlier this year due to Swine Flu there was a meeting of Prime Movers and Chairs in Paris in July 2009. Unfortunately as Prime mover for the European side I was unable to attend the meeting in Paris. This meeting in Beijing had the objective to review the discussion made in July in Paris and to plan the work, delegates and terms of reference for each side in 2010.

  • Meeting time: 21st-22th October 2009, Beijing 22nd-24th October 2009, Ningbo
  • Main participants: Madhu SHARMA, Member of Economic and Social European Committee Wang XIN, Director of Economic Observer Research Center Xingyu LI, Director of East Yongde software Ltd. Yun CAO, General secretary of Ningbo Businessmen sodality Ying GENG, Vice-secretary of Ningbo Businessmen sodality Jia WANG, mediator of European side Rui JIN, mediator of Chinese side
  • Main discussion:

21st October: (XIN Wang, Madhu SHARMA, Xingyu LI, Jia WANG, Rui JIN) 1. introduction of each side 2. visit of Economic Observer Research Centre – An important and highly valued financial media outlet for business, politicians and academia. 3. review of discussion made in July in Paris

o exchange of actual situation of five major difficulties of SMEs in each side (financial supporting, labour problem and social security, interaction with local region, role of women, social responsibilities, innovation and business support, new markets and opportunities)

  • Madhu SHARMA and Wang XIN in front of Economic Observer

Madi explained the interaction between the EESC and the CESE of China, and the role of the Economic and Social Committee especially in being the bridge with civil society. The issue of SMEs has arisen in the last China-EU round Table meeting in Beijing and therefore Madi directly introduced Professor Wang to Mr Li and Mr Wu from the China ESC by telephone.

Lunch was a superb meal in a private dining suite, supported by excellent music from Mongolian musicians.

The following day the group transferred to Ningbo which is a relatively new city, expanding due to the influence of entrepreneurship. The Chinese delegates are very keen to demonstrate to European partners the potential opportunities in Ningbo and the willingness of Chinese business to build relationships with European businesses.

  • Meeting in tranditional Chinese tea room (left 2: Xingyu LI)

22nd October: (XIN Wang, Madhu SHARMA, Yun CAO, Ying GENG, Jia WANG, Rui JIN)

1. continuation of review of discussion made in July in Paris

o discussion about the other problems (trade barriers, innovation and development of products) o modify the results in July according to the importance of problems 1. Financial support / why SMEs can’t get easily the financial support? 2. Trade barriers / How to reduce and avoid trade barriers? 3. Innovation and development of products / How to encourage the innovation and development of products in SMEs? 4. Interaction of SMEs and local region / How to improve the interaction of SMEs and local region? (In fact, social responsibilities, labour problem and social problems can be included in this point) 5. The role of women entrepreneurs / What does the role of female play in SMEs?

2. Discussion of main participants of each side in 2010

European side: since the availability of each people is not 100% for sure, we listed 6 potential candidates instead of 5

3. Discussion in detail of our work in 2010

o Meeting in Ningbo (Three days before the biennials in Hong Kong, seven people in Europe including Jia and Madhu and 7 people in China): + Further exchange of five main difficulties and five main actions in each side + Visit of Ningbo’s SMEs o Biennials in Hong Kong, (seven people in Europe including Jia and Madhu and 7 people in China)

4. Proposition of enlarged meeting with more people involved (Three days before the biennials in Hong Kong). In fact, much more candidates are interested in this direct exchange of SMEs between China and Europe, so we decided to try to get more people involved in Ningbo’s visit.