Do small projects succeed in breaking global trade barriers?

Small projectshave proven today that they have a proven role in advancing economic development efforts, especially since we live in a world in which supply chains are intertwined and competition is increasing. Therefore, there is a strong reason to integrate small projects into the global trade system, so that the base of economic growth can be expanded, and the benefits of this growth are not limited to large companies alone.

Hence, this article sheds light on how international institutions view small enterprises, and the tools offered to enable them to overcome trade barriers and engage in the global economy, reaching their role in achieving Sustainable Development Goals (SDGs).

Why have small projects become a global issue?

First, we must realize that small enterprises are economic entities that are limited in size in terms of labor and capital. They have an important role in employing the workforce and moving the local economy. They are distinguished by their flexibility and closeness to the needs of communities. Which makes it an essential element in any comprehensive development path.

This broad presence gives small projects economic weight and social impact that cannot be ignored when talking about growth or poverty reduction. Despite this pivotal role, its contribution to international trade is limited, compared to its real size. It remains besieged by organizational and procedural challenges that often exceed its capabilities.

These challenges are numerous, the most important of which are complex customs procedures, the long waiting period for goods to exit, the high cost of adhering to the specifications required in different markets, as well as the difficulty of accessing information or partners and foreign markets.

Because of this clear contradiction between the economic importance of small projects and the practical reality that restricts their participation in international trade; International organizations have re-posed a fundamental question: How can small enterprises be integrated into global trade in a more equitable and sustainable manner?

Authorized Economic Operator Programs: An Untapped Opportunity

TheAuthorized Economic Operator (AEO) programsare one of the mechanisms to support international trade in recent years. They are programs that seek to simplify customs procedures and enhance trust between companies and customs administrations. These programs provide companies that adhere to safety and compliance standards with practical benefits, such as reducing the time for releasing goods and reducing inspections, which has a direct impact on reducing costs and accelerating trade.

These advantages - in theory - represent an important opportunity for small projects, but the reality shows a clear gap between the declared goal of these programs and the level of small projects benefiting from them on the ground! The participation of small enterprises in it is still limited in many countries.

A joint study launched by the World Trade Organization, the World Customs Organization, and the International Chamber of Commerce indicates that the problem lies in the difficulty of small enterprises accessing these programs. Due to the lack of information, the complexity of procedural requirements, and weak institutional capabilities, a gap that only becomes clear when looking at the experiences of the entrepreneurs themselves.

From policy to reality: the voice of entrepreneurs

The gap revealed by the Authorized Economic Operator programs between policy design and the reality of implementation becomes clear when listening to the entrepreneurs themselves; Many small business owners have indicated that the real challenges begin when trying to cross into foreign markets, as they face difficulty in finding reliable partners, understanding export requirements, and adhering to product classifications and labels from one market to another.

An example of this is what British entrepreneur Julianne Bonan narrated about how the requirements for these labels and documentation procedures in different markets turned into a real obstacle to expansion, despite the product’s readiness, quality, and success locally.

In another experience, Seiji Seiken - a Japanese entrepreneur in the industrial sector, who started his activity with a small workshop before heading to foreign markets - indicated that finding a reliable international partner was the most difficult challenge, not manufacturing ability or product quality.

Such experiences reflect - in practical terms - what international institutions have indicated regarding the complexity of procedures and lack of information, which are factors that make access to trade facilitation programs - such as economic operator programs - a difficult task for projects with limited resources and capabilities.

The role of regional initiatives in supporting small projects

With the expansion of the challenges facing small enterprises, it has become clear that facilitating global trade requires intermediary bodies that help small enterprises understand the rules and apply them in practice. Here the role of regional initiatives and business organizations appears, which are a link between international policies and the reality of companies.

In the Asia-Pacific region, for example, the role of the Asia-Pacific Economic Cooperation (APEC) forum is highlighted through initiatives that support startups and small projects, and help them connect with potential partners, exchange experiences, and understand the requirements of working across borders.

Similarly, the European Business Association - EBA, an organization representing the European and international business community in Ukraine; A practical role in helping small enterprises to survive and expand, through training programs, facilitating access to financing, and providing targeted support to export efforts, especially in times of crisis.

Such regional roles show that building more inclusive trade depends on the presence of supporting bodies that translate these laws into real opportunities, and enable small enterprises to benefit from them fairly, and in a way that contributes to achieving Goal (8) of the Sustainable Development Goals (SDGs): Decent work and economic growth.

In conclusion, enabling small enterprises to integrate into global trade is a development path that expands job opportunities and gives less-represented groups a real opportunity to access international markets in a more sustainable way.

From the perspective ofThe Earth Guards FoundationTrue development remains that which puts people at its heart, balances economic efficiency and social justice, and builds sustainable models that do not leave anyone behind.