G20 Executive Talk Series

B20 Executive Committee

Dr. Eric Schweitzer

DIHK–President

SMEs – the backbone of economies

The time for the business community to raise its voice is now. Recent developments in global politics and economics show that businesses must emphasize the importance of international collaboration clearly and insistently. B20 Germany can play a key role in guiding the G20 towards a more open and inclusive environment for global trade and investment. Our mission includes enhancing free trade, increasing the participation of SMEs in global value chains and promoting inclusive labor market related education – topics that are also important to the Association of German Chambers of Commerce and Industry (DIHK). To raise the voice of SMEs around the globe with our global network of German Chambers of Commerce and Industry is part of that mission.

World trade is becoming increasingly uncertain for companies. Each month the WTO, OECD and DIHK detect more trade barriers that make it harder for companies to keep up with the pace in international competition. More and more political actors seem to turn away from multilateral trade agreements. The trend of protectionism is growing. However, free and rule-based trade is important, as it allows economies to grow and create jobs, globally and locally on the basis of a widely accepted and fair level playing field. When trading systems are designed multilaterally and in an inclusive manner, they create welfare for everyone. B20 Germany aims to ensure and further develop framework conditions for open markets and free trade.

Around the globe more than 90 percent of companies are classified as SMEs which provide the large majority of employment in almost all economies. Comparatively though, SMEs proportion in Global Value Chains represents only a small share of the global trade volume. Regulations and insufficient access to financial and digital resources hinder them to act beyond borders. B20 Germany argues that the performance of SMEs could be improved drastically by increasing their access to trade as well as to the financial and digital infrastructure, especially outside industrial centers.

An open and inclusive society requires a responsive education system that ensures the transfer of the right skills. Vocational training has often proven an efficient method to qualify future employees in theoretical and practical skills. True to the motto “learning by doing”, the trainees gain qualitative knowledge and the employers are sure to have well educated employees. B20 Germany focuses on promoting such an inclusive labor market relevant education.

The B20 process is an important framework of working together as a global community. In harmony with the other G20 engagement groups and the Sustainable Development Goals of the United Nations, B20 empowers businesses around the world to meet the challenges with the right approaches.

The network of German Chambers of Commerce and Industry (AHKs) with its 130 locations in 90 countries will continue to support the B20 process in shaping the world of tomorrow. The chambers guide companies in the process of internationalization with legal advice, reliable contacts and specific business knowledge about the country of interest. The approach of thinking global, but acting local has been a successful model for a resilient German economy abroad.

Our world is at a crucial stage. Challenging times ask for reasonable actors in the business community. Let’s face the challenges and respond to them with sustainable solutions – to be more responsive, more responsible and more resilient. I encourage all of you to share the recommendations of B20 Germany for your advocacy at home.

AN OPEN AND INCLUSIVE SOCIETY REQUIRES A RESPONSIVE EDUCATION SYSTEM THAT ENSURES THE TRANSFER OF THE RIGHT SKILLS. VOCATIONAL TRAINING HAS OFTEN PROVEN AN EFFICIENT METHOD TO QUALIFY FUTURE EMPLOYEES IN THEORETICAL AND PRACTICAL SKILLS.

Eric Schweitzer is the President of the Association of German Chambers of Commerce and Industry (DIHK), which is the umbrella organization for both, the 79 Chambers of Commerce and Industry (IHKs) in Germany and the 90 German Chambers of Commerce Abroad (AHKs) worldwide. The DIHK speaks for more than three million entrepreneurs, representing all commercial enterprises in Germany.

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