Book

Description

Due to limited availability of human and financial resources and technological capability, SMEs have not been successful in exporting their products and/or importing high-quality intermediate goods. SMEs are in a disadvantageous position compared with large firms for gaining benefits from globalization. They are located in both urban and rural areas, and support the economic activities in many areas and regions. This review is concerned with the impact on SMEs on Economies and highlights the impact of GVCs on SMEs performance. It explores the benefits of SME participation in global value chains, the challenges SMEs face, and proposes policy actions when appropriate. As many disadvantages’ SMEs face, GVCs provide an easier way to engage in trade because they can take part in one task or process—and not the entire production process. In light of these observations, this review examines the pattern and evolution of SMEs’ participation in international trade, particularly in GVCs. It also examines the factors that determine their participation in trade and GVCs, as well as identify obstacles and how SMEs deal with these obstacles. Those analysis adopts two approaches. One is a quantitative, statistical approach; the other is a qualitative, case study approach. A mix of these two approaches is expected to yield meaningful results.