Blog Share: How Can Europe’s Trade Policy Better Benefit Small Exporters? | By Lucian Cernat

According a recent blog at World Economic Forum, Out of the total number of exporting firms, more than 80% are SMEs (over 600,000 exporters). With over €500 billion of merchandised exports, SMEs account for over a third of EU exports. These exporting SMEs employ more than 6 million people throughout Europe. Therefore, while the happy few are still accounting for a dominant share of total EU exports, SME exports are too large to be ignored. And so are those firm-level characteristics that lead SMEs to become successful exporters, which bring us to the third conclusion: Export performance of EU SMEs by member states is quite diverse.When benchmarking SMEs export performance by member states against the EU average, they can be clustered in two dimensions: The proportionate number of exporting SMEs and the value of their exports. Some countries excel in both dimensions, whereas others fall behind in one or in both aspects. Understanding the different SME export performance across countries is important in establishing trade-related domestic policy priorities in various EU countries. Benefits of export to SMEs is inevitable. Nevertheless, one should not underestimate the importance of import to a large economy as European Union. Business and people in large economies would only truly benefit from trade if governments are willing to open up its market and welcome foreign businesses. Read more…