Opinion | Pandemic survival: G20 must help small businesses transform digitally

Name: China’s e-commerce and live-streaming booms are opportunities for private equity, Carlyle Group says
Uploaded: 2021-09-02T06:37:13.000Z
Duration: 10 min 19 s
Description: China’s e-commerce and live-streaming booms are opportunities for private equity, Carlyle Group says

Digital transformation in the corporate world has yet to realise its full potential for boosting global economic recovery

It is vital for the G20 to help small businesses understand the benefits of digitalisation, and offer training and funding aid

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A man promotes cured meat via live streaming from his factory in Shangpai, Feixi county, in the eastern Chinese province of Anhui on January 13. Photo: Xinhua

Diane Wang

Published: 2:37pm, 2 Sep 2021

As an organisation born to tackle a global crisis, the Group of 20 is now obliged to help the world navigate through the Covid-19 storm and recover economically. While there are many tasks for the G20, helping companies – especially micro, small and medium-sized enterprises (MSMEs) – survive this unprecedented crisis should be at the heart of its agenda.

Some governments have taken adequate measures, such as tax and fee exemptions in China and direct rent subsidies in Singapore, to help companies stay afloat and salvage the situation via various means, including digital transformation.

The world has reached a turning point on digitalisation like never before, as video conferencing, e-commerce, live streaming and other technologies enable companies to continue their business in spite of lockdowns, social distancing and travel restrictions.

In 2019, the World Economic Forum (WEF) predicted in a white paper that 60 per cent of global gross domestic product would be digitised by 2022. Given that the pandemic has materially increased the speed of digitalisation and permanently changed how people live and work, this figure could well be even higher by the end of next year.

However, digital transformation in the corporate world, which may involve design, production, marketing and sales, has yet to realise its full potential for boosting the global economic recovery due to various constraints.

10:19

China’s e-commerce and live-streaming booms are opportunities for private equity, Carlyle Group says

In our policy paper for the G20 this year, we – the Digital Transformation Task Force of the Business 20 (B20 Italy) – have come up with four recommendations: reducing internet connection inequality; promoting trust in the digital ecosystem; supporting public and private digital advantages; and fostering a digital-ready and inclusive society.

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