Digitizing commerce: a winning strategy for the internationalization of SMEs

 

The debate on the internationalization of the economy It focuses increasingly on the capacity of the mipymes to transcend borders, an effort that, according to the World Trade Organization (WTO), depends directly on the digital innovationThe Deputy Director General, Xiangchen Zhang, spoke at an event of the WTO Informal Working Group on MSMEs, emphasizing that the results in digitalization are achievable and essential.

 

Zhang cited the results of a 2023 survey that revealed that two-thirds of the companies They plan to expand internationally and that a impressive 80% micro-entrepreneurs are already selling to more than one economy. In his statements, the executive pointed out that: "This clearly shows how Technology is reshaping global trade by empowering businesses of all sizes to reach customers worldwide."

 

The event, the third meeting of Joint Solutions Laboratory The MSME Group focused on the theme of "Digital Innovation Ecosystems and Scaling Up Digital Trade Solutions for MSMEs." It brought together business leaders, government representatives, and policymakers, who agreed that discussions on WTO reform should focus on the needs of SMEs to improve their business ecosystems.

 

A 2023 report indicates that most businesses are looking to expand globally, highlighting the transformative role of technology in world trade.

 

 

Experiences and Challenges in Digital Transformation

 

Ambassador Lominadze of Georgia shared his country's successful experience in digital transformation and empowerment of SMEsHe highlighted key reforms such as the simplification of business registrations, the implementation of digital customs and tax systems, and entrepreneurship support programs that especially benefit rural and women-led businesses.

 

For her part, Youlia Lozanova of the International Telecommunication Union (ITU) warned about the growing political gaps caused by isolated regulatory approaches, ill-equipped to address disruptive innovations such as Artificial Intelligence (AI)The ITU promotes a ecosystem approach which integrates strategic foresight, open technological innovation, and business support.

 

Martin Labbé of the International Trade Centre (ITC) provided specific data about his SME Competitiveness Outlook June, noting that 87% of SMEs using digital tools reported an increase in sales, as well as the 84 % a cost reductionHowever, he stressed that the enabling environment remains challenging due to the infrastructure affordability, regulatory frameworks, and digital skills.

 

Representatives from the private sector reinforced this perspective. Sergio Estupiñán, co-founder of the startup Beekee, a Swiss educational technology company, emphasized that while AI can assist, it does not replace the essential role of organizational support in the real world.

 

As a conclusion to the Laboratory, the Coordinator of the MSME Group, Matthew Wilson, summarized the main challenges for policymakers: the persistence of difficulties in the internet connectivity and the access to financing, the need for a supporting regulatory and technological environmentand the importance of SMEs investing in digital tools and assessing their own needs.

 

The Informal Working Group, which began its meetings in March 2018, currently has 104 members and is actively seeking to improve the participation of mipymes at the world trade.