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Lisbon Strategy : globalisation 26 february 2010 at 15:49 | Tell a friend | Printable version

Chambers go international

Programmes aiding exports for companies, notably SMEs, or the organisation of promotion meetings overseas: from Spain to Cyprus via Italy, here are the best practices implemented by Chambers to help companies seize the opportunities offered by international markets or to attract foreign investors.

Illustration : Thierry Cap de Coume
Illustration : Thierry Cap de Coume

The Export Promotion Start-up Plan (Plan Iniciación Promoción Exterior, PIPE) initiated by the Upper Council of Spanish Chambers of Commerce (“Cámaras”) aims to support companies wishing to turn their gaze to the international sector. Its objectives: to increase the number of exporting companies and to strengthen the international activities of those whose exports are limited. Its targets: internationally minded SMEs supplying their own goods or services whose export turnover is lower than 30% of their total turnover. The programme offers selected companies personalised consultancy services, notably technical, over three stages: firstly, a diagnostic of the firm’s competitiveness and its international potential; next, the setting up of an internationalisation procedure and the carrying out of market studies; finally, the execution of the procedure.
Above all, the PIPE provides financial support to participating companies: over the first two years, the programme reimburses to firms 80% of expenses incurred by internationalisation, up to a maximum of 34,843 euros.
The programme is financed by the European Fund for Regional Development, the Spanish Institute for Foreign Trade (ICEX), regional funds and Chambers. Since 1997, it has enabled 4,500 companies to become regular exporters, thus boosting their turnovers and creating jobs.
In Italy, the Special Assistance Service (SAS), piloted and financed by Promofirenze, an agency of the Florence Chamber of Commerce, shares the same purpose: to help local companies win foreign markets. Promofirenze begins by carrying out, at the request of interested companies, an export diagnostic of the firm, including a company needs analysis, a strategy definition and an offer of services (methodology, calendar, costs). This strategy may comprise a detailed market survey of target countries and opportunities presented in terms of investment, or else a business development plan. Next comes the operational phase, aiming to open up the company’s access to these markets. The firm is supported in this operation via services enabling it to meet potential partners or take part in trade fairs, for example. Other services are provided a posteriori, notably thanks to a network of ten overseas offices in strategic countries and agreements with other local structures (Chambers, private consultants).
Finally, a different approach is being followed by the Cyprus Chamber of Commerce and Industry. Here, it is not so much a question of helping local companies to export as to lure foreign direct investment onto the island, in order to contribute to job creation and the diversification of its economic fabric. Leonidas Paschalides, Manager of the Chamber’s Education and Development Department explains: “We would like international companies to set up their head offices or subsidiaries in Cyprus because we have assets to offer them. Of course, the time when Cyprus was an offshore centre is now over, but we can still promote our corporate tax rate at 10%, the lowest in the European Union, our geographical situation between two continents, excellent transport and telecommunications infrastructures, our lifestyle, and the fact that everyone on the island speaks English, which is helpful for business.”
Business forums and seminars organised in overseas countries by the Cyprus Chamber and the Ministry of Trade and Industry aim to promote these advantages. “Experts from different sectors – lawyers, accountants – as well as companies from target countries that have succeeded in Cyprus run these meetings,” says Leonidas Paschalides. “Local Chambers organise these events and take charge of inviting firms to participate. Our role is to combine these seminars with economic missions by summoning Cypriot companies. In 2010, we have scheduled twenty or so such seminars, covering member countries of the European Union as well as countries outside the EU, such as Lebanon, China, Russia, India, Libya and the United Emirate States.”
This initiative has proved its mettle: “The number of companies setting up in Cyprus is on the rise each year [approximately 20,000 per year, 75% of these being overseas companies],” rejoices Leonidas Paschalides. “We believe that this is mainly due to the events that we organise.”

CYPRUS:
Cyprus business forums/seminars
Cyprus Chamber of Commerce and Industry
www.ccci.org.cy

ITALY:
SAS - Special Assistance Service
Promofirenze - Special Agency of the Chamber of Commerce of Florence
www.promofirenze.com

SPAIN:
Pipe - Export Promotion Start-up Plan
High Council of Spanish Chambers of Commerce
www.camaras.org


Charles Delaere


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Commerce International - March 2010
No 61


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