Enhancing The Role Of SMEs In Global Value Chains

The business challenges of the acceleration of globalization, aided by rapid developments in information and communication technologies, improved transport facilities, behind the border regulatory reform, and tariff reductions-affect SMEs and large multinational enterprises differently. The current phase of globalization, characterized by the globalization of production processes, has required important modifications in the relationships among partners throughout the value chain. Participation in global value chains can bring stability to SMEs and allow them to increase productivity and to expand their business. This is often accomplished by the upgrading of their technological and human capital, as a result of their greater exposure and facilitated access to information, new business practices and more advanced technologies.