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MSMEs in APEC: Apples and Oranges and Why We Need Better Data By Glacer Niño A. Vasquez and Emmanuel A. San Andres   Enabling better data sharing and analysis to drive evidence-based policies can empower small businesses and foster a more inclusive and vibrant economic environment. When it comes to talking about micro, small and medium enterprises (MSMEs) in APEC, some important questions come to mind. For example, how many MSMEs are there in APEC? What percentage are involved in cross-border trade in APEC? And how many of these MSMEs are owned and operated by women? These questions matter when we are trying to come up with effective policies together. But here’s the catch—we can’t answer all of them right now. MSMEs in APEC are a bit like apples and oranges. Both are fruits, but they are so different that lumping them together does not make much sense: storage and serving tips for apples do not necessarily work for oranges, and vice versa. Right now, the data we have for MSMEs just does not stack up. It’s not comparable, and we can neither add them nor average them out. While each APEC economy gathers a ton of information about MSMEs at the domestic level, that data does not translate well at the regional level. The problem lies in the fact that we have different definitions, varying estimates, and a mix of data types. This lack of consistent data is a real roadblock. It makes it tough for the region’s policymakers to cooperate on MSME issues at the regional level. Without accurate and reliable information, it is like stumbling around in the dark. Imagine trying to find your way in a new city without a map or GPS: you don’t know whether you are on the right path to reach your destination. That’s what it feels like for policymakers trying to address the needs of MSMEs when the data is all over the place. For example, APEC policymakers have been promoting MSME internationalization for almost a decade, but until now we do not know if we have made any real impact. This confusion stems from the different definitions and classifications of MSMEs across APEC economies. For example, what one economy might call a “medium-sized enterprise,” another might classify as “small” and yet another one as “large,” depending on the metric used. These differences make it almost impossible to draw accurate comparisons or insights across economies. Even though APEC economies collect a lot of useful data for their domestic use, the inconsistencies stop us from seeing the whole picture of how MSMEs are doing in the APEC region as a whole. But it is not all doom and gloom. There are opportunities to improve the way we share and understand data about MSMEs in APEC. For starters, 20 APEC economies regularly conduct surveys to gather information about their MSMEs. While these surveys happen at different times and use different methodologies, they tell us that most economies already have the budgetary, technical, and administrative resources to gather MSME data. Plus, 12 economies are already linking data from various sources, including surveys, administrative records, and trade documents. This means we have a goldmine of information that we can use to build better connections between our data. Most APEC economies collect data about important things like the number of employees, sales and trading activities of MSMEs. This creates a great opportunity for better sharing of information across the region. However, we still have some gaps to fill, especially when it comes to things like international trade, inclusion, sustainability, and digitalization. Filling these gaps will not only help us understand MSMEs better but also ensure that our policies are on track to deliver. Now that we know what the challenges and opportunities are, let’s talk about some simple steps we can take to improve data sharing without creating too much hassle. First, APEC economies can create clear and consistent definitions for how to process primary data. This will help ensure that the data can be easily combined and analyzed later. Think of it this way: you wouldn’t (or shouldn’t) toss apples and oranges randomly into a basket; rather, you will want to label one basket for apples and another for oranges and sort them accordingly at the onset. Similarly, we need to coordinate our data syntaxes, taxonomies and formats in advance. By doing this, we can make everything more manageable and avoid confusion down the road. Next, to make this work, APEC economies need to stick to the agreed processes and reporting methods. This means we have to clearly define who does what in the data collection and sharing process. If we lay out everyone’s roles ahead of time, it will help ensure that everyone knows their job and how to talk to each other. This will make it easier to gather and analyze data from different economies. To ensure we collect quality data, we should review and clean it up to remove any inconsistencies. Think of it like sorting through the apple basket to make sure no wayward orange gets through, or vice versa. We also need to establish a way to make the most of this data in regular discussions and reports. Finally, let’s make this information available to everyone—policymakers, researchers, stakeholders and interested parties. Imagine putting all that valuable data in one central place, like an online marketplace, where everyone can find what they need—perhaps at the StatsAPEC portal. In conclusion, if we want to support our MSMEs and help them grow, we need to take a more serious look into data interoperability. By improving how we share and understand data in APEC, we can ensure that MSMEs of all shapes and sizes can be compared, analyzed and understood, leading to evidence-based policy discussions at the APEC level. This collaboration will pave the way for better policies and strategies that empower these businesses to thrive, ultimately promoting a more inclusive and vibrant economic environment for everyone in APEC. *** Glacer Niño A. Vasquez is researcher and Emmanuel A. San Andres is senior analyst at the APEC Policy Support Unit. For more on this topic, download the report,  Enhancing MSME Data Interoperability in the APEC Region. News Releases • Features • Publications • Events • Photos • Videos