According to the International Chamber of Ecommerce (ICC), with global trade flows flat lining, the Internet and digital technologies have a key role to play in boosting global commerce in support of inclusive growth. The ICC believes that the Internet is rapidly breaking down traditional barriers to international trade, making it easier for small businesses to go global for the first time.
The ICC secretary general on 03 August 2016 visited Silicon Valley for a series of high-level meetings with tech giants and start-ups on how we can accelerate the development of digital trade for the benefit of all.
The ICC’s vision on how to promote small business growth through e-commerce and digital trade can be summarised in three simple steps.
1. Enhance awareness and training - Many small businesses worldwide lack exposure to information, as well as technology products and services. They possess little awareness of the e-commerce ecosystem as a whole. In the United Kingdom for example, 38% of small business owners with no website say they lack knowledge on how to use digital technology. More development in training programmes across the globe is required to increase digital literacy among consumers and businesses.
2. Facilitate speedy and cost-effective delivery - When it comes to exporting products via online platforms, small, medium enterprises (SMEs) continue to face trade facilitation challenges. Such challenges include burdensome customs administration and long and expensive delivery. In Europe, 15% of companies selling domestically refrain from going global because of excessive transportation costs. By simplifying customs procedures, SMEs could see their cross-border sales increase by 60 to 80% in some economies.
3. Simplify rules and regulations - 46% of European companies that export cross-border say the legal framework is one of the most difficult barriers to overcome. Dealing with different rules and regulations for VAT, tariffs, customs duties, data privacy and protection is a daunting obstacle for many small businesses. Standardisation and simplification of legal requirements could boost e-commerce sales and allow more SMEs to go online. According to the Information Technology and Innovation Foundation (ITIF), decreasing barriers to cross-border data flows would increase Gross Domestic Product (GDP) in the United States of America by 1%.