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Small and medium-sized enterprises (SMEs) make an important contribution to economic growth, employment and social development but also face challenges brought about by globalisation, technological change and the information age. In this environment, it is important that SMEs are innovative and that governments play a role in improving the environment for SMEs and entrepreneurship. The first OECD Conference on SMEs at Ministerial level held in Bologna on June 14-15, 2000 and entitled 'Enhancing the competitiveness of small and medium-sized enterprises (SMEs) in the global economy: strategies and policies', gathered representatives from government, business, unions and civil society in 52 countries to share experiences and insights from business and SMEs. The Conference and its preceding Business Symposium explored four common themes and culminated in the adoption of the 'Bologna Charter for SME policies' by 50 participating OECD and non-OECD countries which proposed innovative policy and practical initiatives for improving the business environment for SMEs. This background paper to the third theme, 'Realising the potential of electronic commerce for SMEs in the global economy', examines the transactions, business processes and other commercial operations taking place over the Internet, and their implications for SMEs.

The conference report is indexed at TD/TNC 69.468. Background papers are indexed from TD/TNC 69.469 to TD/TNC 69.472. Show less

This technical paper reviews and establishes associations between two parallel strands of theoretical and empirical literature: (a) one examining the relationship between economic opening, or trade liberalisation, and the return to skills; and (b) one examining the relationship between human capital and growth. Based on the literature, the paper examines how trade and investment liberalisation may affect the demand for, and returns to, skill in developing countries. The first section of the report briefly reviews some issues of definition and measurement in the study of skills and skill-based wage differentials. The following section reviews the key role of capital-skill and technology-skill complementarity for the OECD countries where it is plentiful and for developing countries where it is meagre. The report then reviews evidence in support of the assertion that increased trade openness in developing countries may result in a shift in skill demand through newly accessible foreign capital and technology. As self-employment is also important in many developing countries, the effect of economic openness on the returns to education in entrepreneurship is also addressed. The report concludes with a brief summary of some policy implications. Show less