They are at the center of the economic scene, but also on the crest of the wave when a crisis breaks out. They are the first to feel its effects. Some survive, others fall by the wayside or wait for the storm to pass in order to re-emerge. Small and medium-sized enterprises (SMEs) constitute the backbone of the Argentine economy that has been going through a recession. What to do with Argentine SMEs? There is an important space for growth for SMEs in international trade. With this conviction, Sebastián Ferrari and Manuel Aispuro, from the Argentine Chamber of Commerce and Services (CAC), spoke with Customs News about “Pymes al Mundo”, a free online showroom, in constant evolution, made to help companies carry out more and better international trade transactions, where growth becomes evident.
Question: What is Pymes al Mundo about?
Manuel Aispuro: Pymes al Mundo (Small Business Champions) was created at the 2017 Ministerial Conference of the World Trade Organization (WTO), during which the “Small Business Champions” competition was held. The CAC and Mercado Libre applied for the Pymes al Mundo (Small Business Champions) project, created with the aim of promoting exports by small and medium-sized Argentine companies through new digital formats. The project was won at the end of 2017, but it started in mid-2018 with a selection of 25 companies, an open event and training.
Sebastián Classic Ferrari for sale and Manuel Aispuro, responsible for SMEs in the World
Q: What advantages does the program offer for SMEs to use?
MA: The program is free. We select the registered SMEs, with federal guidance, based on the exportable activity they develop, creativity, innovation and experience in foreign trade. Once selected, they are provided with the virtual showroom to promote their profile and products, as well as receive a training program. The activities are online, therefore, entrepreneurs do not have to travel. They only have to connect to the platform to attend the trainer's talk and ask questions.
Boosting SME exports
Q: What requirements must an SME meet to consider internationalisation?
MA: The company must be an SME, have a website, a foreign trade representative, have a healthy credit situation and meet certain quality standards. This is because the selected company will be presented by the Argentine Chamber of Commerce and Services.
Q: Which sectors are in a position to export?
MA: Argentina stands out for its food sector. Last year we had cases of wine and honey exports. But the services sector is growing. Pymes al Mundo started with two SMEs exporting services and now we have four. However, the product offering is very heterogeneous. Innovative SMEs have advantages when it comes to exporting.
Regional market
Q: Which countries currently offer the best chances of success for SMEs?
Sebastian Ferrari: Chile, due to proximity; Brazil is a large market that demands Argentine products. Also, the United Arab Emirates and Europe. In this first stage, the companies uploaded to the platform, which represent ten provinces and various sectors, received visits from fifty countries around the world. However, we recommend that SMEs that are starting to export begin in the region where there are no language barriers and transportation costs are lower. This year we are working on an action with the Paraguay chapter of the ICC that is interested in SMEs around the World and wants to do a trade mission to export to that country.
Q: Let's get to the tips: What should I do to be selected?
MA: The SME must have an updated website with clear images; not having one is a major limitation. In addition, its behavior must be serious and responsible. Also, there must be a foreign trade manager.
Once selected, the CAC offers a platform in Spanish, English and Portuguese that allows users to upload their profiles in the three languages, as well as upload a description of their products, following the instructions we provide and the forms of contact, such as WhatsApp. In the 21st century, queries must be answered in less than an hour to avoid losing interest. Sometimes sales are made by responding quickly.
A key piece of information that must be included in the platform is the tariff position of the product they offer, to facilitate the operation for the importer.
Q: What tools do you use to adapt training to the needs of companies?
SF: The CAC offers training based on two pillars: digital tools and new markets. Each video conference with digital experts or embassies is held monthly.
At the beginning of each year, we send registered SMEs a form to define their priority within a series of topics that we choose, or on topics that they propose. Based on the results, we design the training for the entire year.
Typically, digital marketing, web design, new markets and business models are provided. Depending on the market interest (usually Brazil, Chile, the United States), training is organized with the business managers of the embassies, whose talks cover what the market is like, what fairs are available and the opportunities offered. Last year, we also organized a training on tariff positions.
Opportunity to grow
Q: How many companies took the step in 2018, 2019 and how many do you think will do so in 2020?
MA: Pymes al Mundo started with 26 companies in 2018 to reach 126 in 2019, which is the number we currently have on the platform. These companies are from the City of Buenos Aires, Córdoba, Santa Fe, Santiago del Estero, Tucumán, Neuquén, Mendoza, La Pampa, Misiones, Salta and Jujuy. platform is a permanent window to participate. Companies from the provinces can do so without having to travel.
For those registered and selected, the First training will be on March 3rd next and the rest of the activities will be done online on the first Wednesday of each month during 2020.
Q: How would you describe this experience in terms of development for the country?
MY: Exporting is a difficult, long-term process. SMEs must train themselves to escape the ups and downs of the domestic market. SMEs to the World is an opportunity to grow.
SF: Argentine SMEs are passionate and expert in what they do. Exporting is a challenge, it is something that our country needs to grow. We must get out of the stop and go which has been affecting Argentina for more than 70 years. We need more exporting companies to achieve stability and to have the country we deserve. And Pymes al Mundo is a constantly evolving program that helps us grow.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
