Nobody can guarantee that companies all over the world will work reliably and will still exist in ten years. But every company wants the very right partner for a serious and long-term cooperation. The upcoming supply chain law in Germany reinforces this as it requires clarity and certainty about your business partners. But how can you recognize this in advance of cooperations? For this purpose, the German Institute for Small and Medium-Sized Enterprises (DIKMU) has launched a worldwide certification program for SMEs: The label, according to standards of the “German Mittelstand” gives both partners this security and thus promotes “sustainable” international cooperation.
One can argue about the title of being an “export world champion”, but the fact remains that German small and medium- sized companies (SMEs) are particularly successful internationally. But beyond the “hidden champions”, they were often seen not only as solid and reliable, but also as staid and slow. However, the 2008 financial crisis demonstrated, that the “German Mittelstand” is robust, sustainable and strategically positioned for the long term, even in times of crisis. The term “Management made in Germany” makes the rounds of appreciation.
CREATE TRUST
Many companies around the world would like to follow their example. And German and European companies also want their international partner companies to have these characteristics of “sustainable management”: It would increase trust among one another and make cooperation much easier.
LACK OF INFORMATION AND SECURITY
However, SMEs in particular – and not only in Germany – are often uncertain: On the one hand, they have little or no knowledge of the specific economic conditions, practices and customs of their cooperation partners in other countries. Failed collaboration, unpredictable politics and reports about white-collar crime and “mayflies” in the media further unsettle them. In addition, doubts are repeatedly raised – whether justified or not – as to whether the business partners, especially in emerging markets, have sufficient commercial knowledge and management skills to still exist in a few years’ time. More reliable information and certainties about the potential partners would improve this situation. But this is difficult to obtain, especially for SMEs, and often involves too high costs.
WHAT THE SUPPLY CHAIN LAW REQUIRES
The upcoming supply chain legislation in Germany and the EU will increase the pressure to know who you are working with. The European Companies are therefore increasingly demanding proof from their potential partners that the latter operate professionally, sustainably, and seriously. The ones who suffer are the SMEs worldwide, who would like to cooperate internationally. Most of them certainly work competently and seriously but face great difficulties and high pressure by having to present themselves to international business partners as the good guys among the bad guys.
THE SOLUTION: CERTIFICATION
The German Institute for Small and Medium-Sized Enterprises e.V. (DIKMU) as a leading research and teaching unit on the management of SMEs knows the particular characteristics and management behaviors of German companies – and it can recognize and evaluate these characteristics and their prerequisites in companies. Therefore, it was only natural and after demands out of the business community to launch a worldwide certification program “Certified Entrepreneur – to German Standards” (CE2GS). It starts during these months with the accreditation of assessors (reviewers). SMEs worldwide can have themselves assessed and certified in the sense of the above – in a process that is affordable and timely, even for SMEs. They then receive this reputable certificate from the German Institute for SMEs, with which they can excel in cooperation negotiations.
WORLDWIDE REVIEWERS WANTED
The certificate is awarded by DIKMU after a final examination, but the assessment (review) beforehand is carried out by selected, accredited assessors (reviewers) in the respective countries of the SMEs – thus taking into account the country and culture-specific conditions on site. DIKMU is currently looking for suitable partners as reviewers in all countries of the world. About 100 have already been accredited.
ON TOP: “CLUB OF CERTIFIED ENTREPRENEURS”
With the CE2GS certificate, SMEs worldwide receive a valuable credential for mutually beneficial cooperation – it promotes cooperation and economic prosperity of all SMEs in the world. And in addition to this, the global network, the “Club of Certified Entrepreneurs" will soon be established.
A TASK FOR ALL
Therefore, chambers of commerce, associations, politics, and diplomacy are called upon to make this “promotion program” known in their countries and to arouse interest – it would be practiced economic promotion.
Article: Prof. Dr. Jörn-Axel Meyer