Developing Local E-commerce Ecosystems under Covid-19 pandemics

Developing Local E-commerce Ecosystems under Covid-19 pandemics is a project funded through the GIZ program "Private sector development in disadvantaged regions in Serbia". The estimated time for implementation is 12 months, and the activities envisaged by the project will be implemented on the territory of Šumadija, Raška, Moravica and Zlatibor districts. The realization is entrusted to the ICT Cluster of Central Serbia, a business association based in Kragujevac, which brings together companies, institutions and organizations from the ICT sector from the territory of Central Serbia.

The COVID-19 virus pandemic has affected almost all countries of the world. Governments, the economy and citizens are facing various difficulties in their daily activities. The measures taken, such as the state of emergency with limited movement and "locking", have brought many challenges to almost the entire population and endangered the entire economy, especially the work of MSMEs.

Large international and local trading companies already have e-commerce platforms, but the situation caused by the COVID-19 virus has shown that such platforms are insufficient to meet basic daily needs, especially the needs of the elderly population in small communities and municipalities. The situation is a little better in big cities (like Belgrade), but most of the platforms were blocked by numerous orders at one point.

Small and medium-sized enterprises in the field of trade and production, as well as small agricultural farms (closed markets) are threatened by serious consequences caused to a large extent by reduced movement of citizens. The overall situation is not in favor of individual efforts of SMEs to find an adequate and innovative solution due to lack of professional, technical and financial capacity. At the same time, entrepreneurship has undergone a global transformation due to the effects of COVID-19. Not only has the range of opportunities for entrepreneurial activity been redefined, but practices for realizing entrepreneurial opportunities have also changed.

The recent transformation of entrepreneurship has been fueled by another global trend: the digitization and application of digital technologies and infrastructure to redefine the way economies, societies and businesses operate under disrupted value chains. The rapid development of ICT, the application of these solutions and Android technologies have shaped new trends and imposed the need to change and adopt, as well as to use new opportunities for other industries and e-commerce. The fact that this represents an opportunity to reduce the negative effects on the economy at all levels must also be taken into account.

Another reason to focus on the digital economy and e-commerce is that digital technologies are developing rapidly around the world, and experience tells us that MSMEs develop up to three times faster when actively using ICT technologies, creating new jobs. Therefore, the transition to the digital economy is necessary and one of the ways for faster economic recovery.

This project takes all of the above into account and provides support to domestic companies and MSMEs to go through the process of digital transformation. The project aims to support MSMEs in the field of e-commerce access, provide an adequate response to the situation caused by the COVID-19 virus pandemic, as well as to explore opportunities for cooperation with the IT sector but also to expand the market for IT companies.

The general objectives of the project are:

• Improved sustainability, productivity and competitiveness of MSMEs and their ability to adapt to customer needs and new market demands.
• Improved value chain through strengthening cooperation with the ICT sector and promoting ICT cluster services for both cluster members and other MSME sectors in Central Serbia.

The specific objectives of the project are:

• Improved MSME capacities in order to facilitate adaptation to the changed supply chain and distribution channels in order to maintain local markets and access new markets through the application of digital entrepreneurship.
• Increased use of information technology for business modernization in all aspects (services, processes, marketing, organization).
• Contribute to improving response and recovery in disaster situations by strengthening cooperation between the private (MSME) sector, the public sector and civil society organizations.

The mentioned goals will be achieved through:

• Result 1: Local partnerships established, and the needs of stakeholders and potential beneficiaries identified by basic research;
• Result 2: Improved retail capacities of MSMEs relevant for online sales and further digitalization of business;
• Result 3: Local MSME provided with an e-commerce network platform
• Result 4: Project promoted in accordance with GIZ visibility guidelines.

The project envisages the implementation of activities that include researching the attitudes and needs of citizens, MSMEs and local institutions, as well as training and professional assistance with a focus on capacity building of MSMEs to facilitate the process of digital transformation and e-commerce, in cooperation with the ICT sector.