In the statement at the European Day Entrepreneur on 6th October 2011 in Dubrovnik, Republic of Croatia, the WUSME Delegation urged Governments of all Nations to adopt efficient measured to protect Micro-Small and- and Medium Enterprises from the next financial crises which is not far off. A new financial framework shall comprise the following instruments:
1. National Mutual Funds for MSME Crises Prevention and Development (MCPD Funds), independent from Governments and Banks, financed with a 0,01% Currency Transaction Tax and 0,3 % of the VAT (Value Added Tax) which entrepreneurs collect for the Governments free of charge. The only exemption is Austria – a success story.
2. Tax reforms aiming at equity financing instead of bank loans, e.g. by
tax exemptions for profits remaining in the companies for investments.
3. Reduction of remittance cost in the tune of 50% by using automatic teller machine (ATM)/debit card transfer services, which are being offered by a growing number of private banks.
4. Reforms of Institutions in less privileged Countries with bad rankings in the World Bank Group “Ease of Doing Business”.
5. Central Bank (s in African Countries shall issue Guarantees for private underwriters for the financing of hydro power plants, wind parks and solar power plants. (Main obstacle for economic development: Electricity)
Gian Franco Terenzi, President WUSME, stressed the importance of Micro-Financing for small businesses, crafts and agribusiness in less developed economies. Since we cannot expect in the next years much better access of small business to bank loans and Government grants, idependent Crises- and Development Funds must be part of a new financial architecture, said Mr. Terenzi.
In his introduction to the WUSME High Level Panel Discussion, Norbert W. Knoll von Dornhoff, General Secretary, regretted that the European Investment Bank – EIB has not so far produced any evidence that its loans have actually benefited local populations and businessmen even in more stable political circumstances. The EIB has invested in North Africa since 1979 nearly 2 billion EURO but EIB concentrated too much of its investments on the energy sector. Knoll urged the EIB management to extend global loans and equity finance to SMEs in “Danger Zones” of the African Continent rather than in North Africa.
WUSME can certainly provide support to the less privileged economies in the following areas, said S.J. Juneja, Vice President of WUSME at the Panel Discussion:
Facilitate technology transfer from WUSME member countries to the organisations and enterprises in Africa.
Enterprise to enterprise cooperation.
Training to entrepreneurs for setting up SMEs.
Undertake mission with a view to provide policy and
institutional reforms.
Dr. Gian Franco Terenzi is President of WUSME, entrepreneur and Member of Parliament of the Republic of San Marino.
Dr. S.J. Juneja, India, is Vice President of WUSME and Indian entrepreneur
Dr. N.W. Knoll von Dornhoff, Austria, is General Secretary of WUSME and associated Professor of Economic and Fiscal Policy of the International University of Entreprenology, Hawaii, USA