(MENAFN- Khaleej Times) Small businesses that use digital tools for a higher number of purposes are more likely to engage in international trade and succeed, according to a survey.
Across 33 countries globally, while 42 per cent of small and medium businesses are positive about their current state, 60 per cent are optimistic about the future, the survey by Facebook reveals.
The findings of the "Future of Business Survey" is significantly relevant to the UAE, where SMEs (small and medium enterprises) that account for 86 per cent of the total workforce, are the chief enablers of economic diversification, innovation and a shift to a knowledge-based economy.
The UAE is giving a big priority to SMEs across policies and initiatives with an aim to boost their share of the segment in national economy to 70 per cent from 60 per cent by 2021.
Another key finding of the survey, conducted in collaboration with the World Bank and Organisation for Economic Co-operation and Development, is that "when small businesses engage in international trade, they thrive."
The research reveals that small businesses (45 per cent) that are engaging in international trade are more likely to increase jobs in the next six months, than non-traders (37 per cent).
On a global level and across all survey months, 18 per cent of SMEs state that they did create jobs in the past six months and 39 per cent that they want to create jobs in the next six months. The survey covers more than 140,000 small businesses, in 33 countries around the world, provides information to help businesses learn from each other and to encourage them to use technology to further their reach.
The study finds that digital presence matters for international trade: 17 per cent of small businesses with a digital presence are engaged in international trade.
Small businesses engaged in international trade are more confident about the present and near-term outlooks of their businesses than non-traders. For the UAE, where the number of SMEs is more than 350,000, accounting for more than 94 per cent of the companies operating at present, the survey findings underscore the potential of the sector in driving the growth of the economy. Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said government has taken some strategic measures towards the goal of achieving a GDP share of 70 per cent from the SME sector by 2021. At present, as many as 73 per cent companies in the wholesale and retail trade and 16 per cent in the services sector are SMEs. The manufacturing sector also has an 11 per cent share for SMEs. Together, these SMEs contribute to 86 per cent of the total workforce in the UAE and account for a GDP share of 60 per cent, according to the minister.
This year's Facebook survey results focus primarily on Gender Management - gender equality in business should be a priority in every part of the world.
According to the survey, although barriers to starting a business in some countries are significant, when women circumvent them, they are equally confident about the present and near-term outlooks of their businesses as are men.
Small businesses drive economic growth and are responsible for the vast majority of jobs in economies around the world, through adopting digital tools that decrease the barriers to entry into the international economy..
One interesting finding is that women-run businesses use digital tools for five of the six purposes included in the Future of Business survey more than male-run businesses.
Typically, women are not seen as the main consumers of technology, but in fact, they are using digital more than men to run their businesses, shows the survey.
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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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