(Geneva) – The SME Competitiveness Outlook 2022, released today, puts the spotlight on four types of services – known as connected services – that drive transformation, regardless of economic level.
The four – transport and logistics, financial services, information and communication technologies, and business and professional services – contribute directly to economic growth, with an increasing share of output, trade, and jobs. They also contribute indirectly, by making all firms more competitive.
Connected services assist firms to join the global economy through trade, ITC survey research shows. For example, in regions with high-quality connected services, 44% of all companies export, compared with 19% of firms where such services are weaker.
Inclusive growth: small firms, women, youth
The report also finds that connected services spur inclusive growth favorable to small businesses, including those led by women and young people.
‘Connected services make our societies more equal. As we rebuild from the pandemic, this services-led approach to development can help countries leapfrog and transform their economies,’ said Pamela Coke-Hamilton, Executive Director of the International Trade Centre.
‘These services link various parts of a supply chain, and spearhead digital innovation,’ added Ms. Coke‑Hamilton.
Yet most small firms in developing countries do not access these services easily.
The report sets out how companies, governments, and business support organizations can improve connected services. The Connected Services, Competitive Businesses Plan entails action for firms to:
Grow networks and manage relationships
Innovate to deliver quality services
Deepen staff skills
Use finance to diversify products and markets
Key findings
Among the report’s findings:
Connected services jobs are growing faster in low-income countries. Employment in connected services grew by about 8% a year in low-income countries from 2007–2019, compared with 4% in manufacturing and 2% in agriculture.
Strong logistics services improve inventory management and timely delivery. ITC business surveys reveal that 78% with access to high-quality services have good inventory management – compared with 36% depending on low-quality services.
Yet most small firms in developing countries do not access these services easily.
The report sets out how companies, governments, and business support organizations can improve connected services. The Connected Services, Competitive Businesses Plan entails action for firms to:
Grow networks and manage relationships
Innovate to deliver quality services
Deepen staff skills
Use finance to diversify products and markets
Key findings
Among the report’s findings:
Connected services jobs are growing faster in low-income countries. Employment in connected services grew by about 8% a year in low-income countries from 2007–2019, compared with 4% in manufacturing and 2% in agriculture.
Strong logistics services improve inventory management and timely delivery. ITC business surveys reveal that 78% with access to high-quality services have good inventory management – compared with 36% depending on low-quality services.