20th INSME Annual Meeting

“Unlocking Sustainable Finance for SMEs”

14 – 15 October 2024

Rome, Italy

Co-organized with:

 

BACKGROUND

INSME is pleased to celebrate its 20th Anniversary this upcoming October, alongside its members and partners. 

The idea of launching an international initiative for SMEs was conceived in 2000 by the Italian Government and introduced as part of the OECD Bologna Process on SMEs, which was a set of endeavours agreed to by OECD members to implement recommendations adopted during the OECD Ministerial Conference on SMEs and Globalisation in June 2000. The resolutions in the first OECD Ministerial Conference on SMEs were set forth in the Bologna Charter in SME policies which included a reference to the set-up of INSME as a gateway and effective interlocutor for governments committed to implementing policies in support of SMEs. Thus, in February 2004 the network became an independent legal entity, increasing its partnerships and activities and enhancing its commitment to SMEs through several projects, initiatives, and policies.

CONFERENCE THEME

In recent years, the global agenda has recognized the urgency of addressing societal, climate changes as one of the most pressing issues facing countries, leading to the increase of Environmental, Social and Governance (ESG) considerations impacting small and medium-sized enterprises worldwide. Global efforts to achieve climate mitigation are particularly significant in the economic sphere and have crucial effects and consequences for entrepreneurship and SMEs. Indeed, tackling the climate crisis calls for the green and net zero transition of millions of SMEs, which have a significant aggregate environmental footprint (at least 50% of the greenhouse gas emissions of the business sector) and need to adopt cleaner business models. Moreover, as eco-entrepreneurs and eco-innovators, SMEs also have a critical role to play in devising innovative climate solutions (OECD, 2024).

In light of this, the demand for more sustainable products and greater transparency and accountability of financial institutions and large corporations concerning their environmental and social performance has grown in recent years, prompting even SMEs to adopt the new financial sustainability and ESG integration standards as customers seem more incline to favour sustainable businesses and products. Examples of this include the mandatory sustainability report (European Commission, 2023) for large companies which is promoted by the European Commission and its ripple effect on smaller realities. 

The 20th INSME Annual Meeting aims to explore the new dynamics of sustainable finance with a focus on ESG integration, and to study their present and future impact on SMEs, highlighting the main obstacles they face in adopting sustainable financial practices and the opportunities that may arise from its implementation. Although most SMEs are only at the beginning of their journey to net zero and account for a relatively small share of sustainable finance investments, they need to equip themselves with the financial tools and resources needed to align with the new demands of investors, regulators, and policymakers. 

Accordingly, the drivers for Financial Institutions (FIs) and large enterprises to provide sustainable finance to SMEs are growing. Increased demand for sustainable finance from investors, reputational considerations, and the emergence of new products and market opportunities afforded by the green and net zero transition are driving financial actors such as banks, FIs, venture capital, and large corporations to adopt sustainable solutions and apply them in their value chains. Equally, SMEs are encouraged to align with the new standards as their participation in value chains, access to finance and competitiveness increasingly depend on businesses’ ability to measure, report on, and improve their sustainability performance (OECD, 2022).

Nevertheless, the road to green growth is marked by several constraints for SMEs. When it comes to accessing sustainable finance, besides the longstanding barriers in accessing finance resulting in limited access to capital markets and difficulties in obtaining loans, SMEs face additional challenges. It is therefore crucial to investigate the main shortcomings and hurdles that slow down the green transition for SMEs to structure tailored policies, recommendations, and guidelines. It is, thus, necessary to consider the main difficulties faced by SMEs such as the lack of data related to SMEs’ environmental performance, lack of a homogeneous methodological approach to define and measure environmental sustainability, lack of knowledge and expertise, technological, market and regulatory uncertainty and resource constraints (OECD, 2024).

In conclusion, ensuring that SMEs have access to affordable financing suitable for their sustainability-related needs is an essential priority for policymakers, financial institutions, and governments seeking to accelerate the business sector’s net zero transition.

CONFAPI – The Italian Confederation of Small and Medium-Sized Enterprises

VENUE

Unioncamere – Sala Longhi, Piazza Sallustio 21, 00187, Rome, Italy

Unioncamere, formally known as Unione Italiana delle Camere di Commercio, Industria, Artigianato e Agricoltura, represents the system of Italian Chambers of Commerce, Industry, Crafts, and Agriculture. Established to support and promote the interests of businesses across Italy, UNIONCAMERE comprises a network of over 100 Chambers of Commerce nationwide. These chambers serve as crucial intermediaries between local businesses and governmental authorities, offering a range of services that include business registration, trade promotion, market research, and economic development initiatives.

AGENDA

The Agenda may be subject to change depending on speaker availability. Please check the page for updates.

N.B. All times are indicated in CEST, please check your time zone here.

The working language of the conference will be English.

Conference Program – Monday 14 October 2024

9:00 – 10:00 Registration and Welcome Coffee

10:00 – 11:00 Opening speeches  

• Sergio Arzeni, President, INSME, Italy
• Valentino Valentini, Deputy Minister at the Ministry of Enterprise and Made in Italy, Italy
• Cristian Camisa, President, Confapi, Italy
• Christoph Ahlhaus, President, BVMW-German Mittelstand, Germany
• Alessandra Ricci, CEO, SACE, Italy

11:00 – 12:00 Session 1: Sustainable finance, is it an oxymoron?

The role of key economic and financial players is pivotal in driving the transformation of SMEs towards sustainable finance by leveraging their influence, resources, and expertise to foster a culture of sustainability within the SME sector. From banks to investors, these entities can leverage their influence and resources to drive sustainable practices within SMEs. Moreover, the discussion will focus on elucidating the primary tools and mechanisms available to aid SMEs in meeting the stringent standards mandated by sustainable finance initiatives.

The panel will discuss the following issues:

• What is the role of key economic and financial players in supporting the transformation of SMEs toward sustainable finance?
• What are the main tools to help SMEs comply with the standards required by sustainable finance?

Chair: Prof. Jay Mitra, Founder of IEF, Essex Business School, United Kingdom

Panel discussion with:

• Mariangela Siciliano, Head of Education, Business Promotion and Supply Chain, SACE, Italy
• Ali Muqaibal, CEO, Sharakah, Oman
• Andrea di Anselmo, President, META Group, Italy
• Aurora Candel, Director for SMEs, Ministry of Entrepreneurship and Tourism, Romania
• Sophia Kassidova, Head of Strategy and Green policies, BDB, Bulgaria
• Aladdin D. Rillo, Managing Director for Policy Design and Operations for the Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia.

12:00 – 13:00 Session 2: Integrating ESG and Innovation

Integrating ESG principles into SME policies yields significant benefits in fostering innovation, enhancing social impact, securing competitive advantage, and promoting sustainability. This approach, indeed, drives innovation by encouraging the development of sustainable products and processes, thereby opening new market opportunities and customer bases, while also enhancing resource efficiency and reducing operational costs. Moreover, this commitment to sustainability allows SMEs to attract socially responsible investors and unlock funding and opportunities.

The panel will address the following issues:

• How can SMEs thrive by integrating ESG?
• What are the opportunities and innovation benefits of integrating ESG?

Chair: Giovanni Zazzerini, Secretary General, INSME, Italy

Panel discussion with:

• Vasso Kyrkou, Head of International Relations, Enterprise Greece, Greece
• Martin Rupper, Managing Director, IMP³ROVE, Germany
• Massimo Deandreis, Director, SRM Intesa Sanpaolo, Italy
• Maria Lucia Castrillon, Director, PROPAIS, Colombia
• Bruce Billson, Ombudsman Small Enterprises and Family business, Australia

13:00 – 14:30 Networking Lunch

14:30 – 15:30 Session 3: Supporting Policies and ESG Regulation

Stricter environmental regulations and carbon pricing mechanisms could impose compliance costs and operational constraints on SMEs, particularly those with high carbon emissions. Speakers will analyze the existing regulatory landscape and discuss what is being done, and what must be done to ensure SMEs don’t drown in the sea of sustainability.

The panel will address the following issues:

• What are the main regulatory barriers SMEs face in complying with ESGs?
• What has been the feedback from SMEs thus far in pilots or in the framework already in use?

Chair: Hamsa Thota, Founder of Innovation Business Development Inc., USA

Panel Discussion with:

• Orkhan Mammadov, Chairman of the Board, KOBIA, Azerbaijan
• Lorenzo Galanti, Director, ITA, Italy
• Pasquale Salzano, President, SIMEST, Italy
• Giovanni Da Pozzo, President, Promos, Italy
• Lishia Erza, Director, Indonesian SMEs Association, Indonesia
• Abed Fattah Alkayed, CEO, Jordan Enterprise Development Corporation, Jordan

15:30 – 16:30 Session 4: The Twin Transition

The twin transition encompasses the concurrent digital and green transformations necessary to enhance the competitiveness and sustainability of SMEs. Achieving this requires SMEs to cultivate crucial digital competencies, including advanced digital literacy, proficiency in data analytics, sustainable operational practices, and innovation management capabilities. However, SMEs encounter several challenges such as constrained financial resources, limited access to cutting-edge technology and expertise, and the intricate challenge of integrating digital advancements with environmentally sustainable practices.

The panel will address the following issues:

• How can SMEs harness the twin transition to improve their ESG performance?
• What is a success story of positively leveraging ESG to tackle the twin transition?

Chair: Paola Zerilli, Senior Lecturer, University of York, England

Panel Discussion with:

• Giuseppe Tripoli, Secretary General, Unioncamere, Italy
• Said Charna, Senior Advisor, Union for the Mediterranean, Spain
• Raimund Broechler, Senior Researcher & Innovation Manager, Netcompany Intrasoft, Luxembourg
• Boyko Takov, CEO, Bulgarian SME Promotion Agency, Bulgaria
• Qamar Saleem, Global Head, SME Finance Forum, United States
• Sebastiano Toffaletti, Secretary General, European Digital SME Alliance, Belgium

16:30-17:00 Summary of the outcomes and closing remarks

20:00 – 22:00 Gala Dinner 

INSME General Assembly – Tuesday 15 October 2024

9:00-10:00 INSME Board Meeting

10:00 – 11:30 INSME General Assembly (Members Only)

Members of the General Assembly are informed about ongoing and future activities, projects and achievements, including the INSME 2023 financial statements and the forecast for 2024. Delegates share updates about their projects and initiatives and new members introduce themselves.

11:30 – 13:00 Brokerage Event

The Brokerage Event is a prime opportunity to connect, collaborate, and innovate with fellow INSME members and partners. Attendees will gain valuable insights into current funding opportunities in the EU and globally, share best practices, and forge new partnerships for ongoing and future project proposals. This event promises a dynamic environment for learning from peers, brainstorming and pitching new initiatives and driving forward innovative projects.

If you would like to make a short pitch of your organization, present a project opportunity to be developed jointly or if you are looking for a partnership, please get in touch with the INSME secretariat at secretariat@insme.org

Registration

Participants can easily register for the annual meeting by accessing the registration link. This online platform allows individuals to securely submit their information and confirm their attendance at the event. Completing all required fields accurately ensures efficient organization and preparation. INSME eagerly anticipates welcoming attendees and encourages prompt registration to facilitate seamless participation.