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Showing posts with label Michael Kang. Show all posts
Showing posts with label Michael Kang. Show all posts

Monday, October 24, 2016

Supporting women entrepreneurs


One in five SMEs are owned by women, but many tend to be micro-enterprises with limited capital. Extending a helping hand to ensure their success is important because not only would it contribute to economic growth, it would also ensure the well-being of family.

FOLLOWING the talk on women entrepreneurship at our SME Club last May, we joined force with the Secretariat for Advancement of Malaysian Entrepreneurs (SAME), of the Prime Minister’s Department, to launch the Women Talentship Workshop on Oct 6 with the aim of encouraging women to participate in entrepreneurship.

The idea is to equip women with the necessary knowledge and skills in order for them to create and run successful businesses.

The workshop was well received. We had about 300 women participating.

Encouragement and support for women in entrepreneurial activties is important. Based on the latest statistics available (Economic Census 2011), nearly one in five SMEs (19.7%) are owned by women. About 92% of these SMEs are involved in the service sector.

Many of these businesses are likely to be unregistered micro-enterprises operating in the home or on temporary premises, with fewer or no employees and limited capital for expansion.

There are several common challenges faced by these small-scale, women-owned businesses. First of all, the women entrepreneurs constantly struggle with finding a balanced role between career and home.

Women are expected to shoulder the burden of being a mother and a homemaker, apart from being a breadwinner or business woman. And this is a challenging task.

Our workshop was intended to encourage women to participate in entrepreneurship while embracing well-balanced roles through three levels of strategy planning and development, i.e. personal discipline, communication discipline, and business discipline.

SAME’s advisor, Grace Chia, who is an advocator and practitioner of entrepreneurship, says the three disciplines are practised by many successful businesswomen.

By personal discipline, one means the ability to identify, acknowledge and understand your own strengths and weaknesses as the first step to finding your niche in business.

We should focus on leveraging on our strengths and finding peers with skills that we lack.

When we talk about communication discipline, we emphasise the ability to communicate in order to achieve a win-win outcome among family members, business partners and customers. You must be able to persuade your team to share your vision, in order to be able to tap the resulting synergy and move towards common goals.

By business discipline, we are refering to the bankability and marketability of your business. Often, many businesses fail to get financing because they lack solid fundamentals in finance and accounting, and consequently the bookkeeping for the company.

Also, the lack of a workable marketing plan may deter the access to financing as well as opportunities for success.

We must be able to prepare a bankable business plan when we want to obtain financing from a third party. A good bankable business plan would include an attractive and convincing business idea, what problems it can solve, how it fits with market needs, what effective and feasible marketing strategies you have, and what the ROI or return on investment is likely to be.

Also, it is essential to show entrepreneurial elements in the business plan when one is applying for financing. This is to help you to differentiate yourself from the usual business plans. More importantly, the entrepreneurial elements suggest that you are serious and have in mind a long-term endeavour rather than just a profit-making plan.

Equally important is to know your products well.

Who are your target groups? How are you going to promote the products to them? We may have good products, but there may not be a market for the products.

We recognise the importance of promoting women entrepreneurship for the reason that the success of women entrepreneurs will contribute to economic growth as well as the well-being of families. There is no reason for us to neglect the talents and capabilities of women, which form half of the population in Malaysia.

Women entrepreneurs should fully utilise government programmes that promote entrepreneurship among women. Some of the government agencies and programmes that aim to assist women entrepreneurship include SAME’s women talentship initiative, SME Corporation’s Skills Upgrading Programme, and Matrade’s Women Exporters Development Programme.

By Michael Kang, who is the national president of the SME Association of Malaysia.

Related posts:


 Promoting women entrepreneurs; mind your finances

Jun 20, 2016 ... Do we need specific initiatives to help female entrepreneurs? Some say no, because men and women face similar obstacles in business.



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Aug 27, 2016 ... As an entrepreneur with businesses and investments, my natural .... Promoting women entrepreneurs; mind your finances Jun 20, 2016 .
 

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Supporting women entrepreneurs


One in five SMEs are owned by women, but many tend to be micro-enterprises with limited capital. Extending a helping hand to ensure their success is important because not only would it contribute to economic growth, it would also ensure the well-being of family.

FOLLOWING the talk on women entrepreneurship at our SME Club last May, we joined force with the Secretariat for Advancement of Malaysian Entrepreneurs (SAME), of the Prime Minister’s Department, to launch the Women Talentship Workshop on Oct 6 with the aim of encouraging women to participate in entrepreneurship.

The idea is to equip women with the necessary knowledge and skills in order for them to create and run successful businesses.

The workshop was well received. We had about 300 women participating.

Encouragement and support for women in entrepreneurial activties is important. Based on the latest statistics available (Economic Census 2011), nearly one in five SMEs (19.7%) are owned by women. About 92% of these SMEs are involved in the service sector.

Many of these businesses are likely to be unregistered micro-enterprises operating in the home or on temporary premises, with fewer or no employees and limited capital for expansion.

There are several common challenges faced by these small-scale, women-owned businesses. First of all, the women entrepreneurs constantly struggle with finding a balanced role between career and home.

Women are expected to shoulder the burden of being a mother and a homemaker, apart from being a breadwinner or business woman. And this is a challenging task.

Our workshop was intended to encourage women to participate in entrepreneurship while embracing well-balanced roles through three levels of strategy planning and development, i.e. personal discipline, communication discipline, and business discipline.

SAME’s advisor, Grace Chia, who is an advocator and practitioner of entrepreneurship, says the three disciplines are practised by many successful businesswomen.

By personal discipline, one means the ability to identify, acknowledge and understand your own strengths and weaknesses as the first step to finding your niche in business.

We should focus on leveraging on our strengths and finding peers with skills that we lack.

When we talk about communication discipline, we emphasise the ability to communicate in order to achieve a win-win outcome among family members, business partners and customers. You must be able to persuade your team to share your vision, in order to be able to tap the resulting synergy and move towards common goals.

By business discipline, we are refering to the bankability and marketability of your business. Often, many businesses fail to get financing because they lack solid fundamentals in finance and accounting, and consequently the bookkeeping for the company.

Also, the lack of a workable marketing plan may deter the access to financing as well as opportunities for success.

We must be able to prepare a bankable business plan when we want to obtain financing from a third party. A good bankable business plan would include an attractive and convincing business idea, what problems it can solve, how it fits with market needs, what effective and feasible marketing strategies you have, and what the ROI or return on investment is likely to be.

Also, it is essential to show entrepreneurial elements in the business plan when one is applying for financing. This is to help you to differentiate yourself from the usual business plans. More importantly, the entrepreneurial elements suggest that you are serious and have in mind a long-term endeavour rather than just a profit-making plan.

Equally important is to know your products well.

Who are your target groups? How are you going to promote the products to them? We may have good products, but there may not be a market for the products.

We recognise the importance of promoting women entrepreneurship for the reason that the success of women entrepreneurs will contribute to economic growth as well as the well-being of families. There is no reason for us to neglect the talents and capabilities of women, which form half of the population in Malaysia.

Women entrepreneurs should fully utilise government programmes that promote entrepreneurship among women. Some of the government agencies and programmes that aim to assist women entrepreneurship include SAME’s women talentship initiative, SME Corporation’s Skills Upgrading Programme, and Matrade’s Women Exporters Development Programme.

By Michael Kang, who is the national president of the SME Association of Malaysia.

Related posts:

Jun 20, 2016 ... Do we need specific initiatives to help female entrepreneurs? Some say no, because men and women face similar obstacles in business.
 
 
Mar 28, 2016 ... Entrepreneurship is not a job. It's about providing a solution, and pulling people and resources together to make that change. Workable ...
 


Aug 27, 2016 ... As an entrepreneur with businesses and investments, my natural .... Promoting women entrepreneurs; mind your finances Jun 20, 2016 .
 
 
Jun 4, 2016 ... The solution, said Jim and other global leaders speaking in Copenhagen, lies in investing in women and girls, a strategy that is crucial to ...
 
 

Monday, June 20, 2016

Promoting women entrepreneurs; mind your finances


Do we need specific initiatives to help female entrepreneurs? Some say no, because men and women face similar obstacles in business. However, there can be no denying that women face challenges not experienced by their male counterparts.

LAST May, the SME Association of Malaysia organised a talk on women entrepreneurship at its regular SME Club get-together. We were worried that the topic would not be interesting, but to our surprise, the event was well received.

About a hundred people participated in the talk.

When we told the SMEs that we were going to have a talk on women entrepreneurship, some of them asked: Why talk about women entrepreneurship? Does it matter? Why bother?

After all, business is a men’s world. The place for women is at home.

Others said there was no need to differentiate women entrepreneurs from entrepreneurs in general, as many of the barriers faced by female-owned SMEs were similar to those faced by male-owned SMEs.

To this, I would say: Yes and no.

While male and female entrepreneurs may face similar constraints in general, women face specific barriers and challenges not experienced by their counterparts.

While women make up about 50% of Malaysia’s population, less than 20% of the SMEs are owned by women. Even though the number for women entrepreneurs is small, it’s nonetheless encouraging as it shows that women no longer buy the stereotype of business being a male domain.

There are several key reasons for women to get into business. Running your own business provides flexibility in managing career and domestic responsibilities.

Also, it gives some degree of personal freedom to women who are dissatisfied with “fixed” employment. Job flexibility, like work hours, office location, environment, and the people they work with, is appealing to many women.

Other reasons for women to start a business include income security and career satisfaction. Some women become entrepreneurs due to some personal circumstances, like being laid off, divorce, or the retirement of their spouse. They start a business to improve or maintain their social or economic status.

Some women who do not have any previous work skills or experience start a business in order to prove that they can be productive and useful.

The majority of women-owned businesses are smaller outifts than those owned by men, and they are mostly concentrated in the service sector (about 90%). Many of these businesses are likely to be unregistered micro-enterprises operating in the home or on temporary premises, with few employees and limited capital for expansion.

Access to financing is one of the biggest challenges. They are less aware of the options relating to loan and grant opportunities. In addition, women usually lack the collateral required compared to men, stemming in part from restrictions on asset ownership.

Women entrepreneurs are also less likely than their male counterparts to have a history of interaction with formal financial systems, lowering their credit-worthiness and potentially raising interest rates on loans assumed.

They also encounter obstacles in accessing opportunities to acquire knowledge and skills that underpin successful entrepreneurship. This may be due to impediments in access to education, training and job experience. These are usually compounded by the demands of domestic responsibilities.

Time constraints further limit women entrepreneurs’ formal networking, which, in turn reduce access to skill and capacity-development opportunities. Formal networks, such as business associations, provide a wealth of information on business opportunities, access to government officials, grants and support programmes, as well as credit credentials and access to loan packages, to name a few.

Good networks provide good access to information and resources. First-hand information allows entrepreneurs to move one step ahead and grab the opportunities. A good pool of resources would help entrepreneurs to survive in bad times and to expand more effectively.

The Government needs to take a proactive role in promoting women entrepreneurs. We need to put in place gender-responsive policies and capacity-building initiatives to address the structural, institutional and socio-cultural inequalities.

It would perhaps be best to start by enhancing their access to finance, which is essential in building a good business foundation.

By Datuk Michael Kang who is the national president of the SME Association of Malaysia.

Mind your finances


 
Up to 36 of business failures are caused by inadequate financial management, according to a report by the ACCA. —123rf.com

IN GENERAL, more than 50% of startups fail within five years, and up to 36% of business failures are caused by inadequate financial management, according to a report by the Association of Chartered Certified Accountants (ACCA) entitled “Financial management and business success - a guide for entrepreneurs”.

The report says many entrepreneurs are not equipped to make informed and effective decisions about their financial resources.

“Having the right financial capabilities remains vital throughout the life of a business, whether you are just starting out, have an established business or are looking towards a final exit from a firm,” explains Rosana Mirkovic, ACCA’s head of SME policy.

“Businesses are changing and innovating more rapidly than ever, and the financial management needs of organisations must continue to evolve alongside their developments. Recognising the right financial management capabilities is therefore imperative to their success,” she explains.

Mirkovic adds that understanding financial information is vital for offsetting the risk of business failures as it reveals the early warning signs of impending problems.

The report by ACCA addresses the financial literacy skills gap, potentially serving as a guide to those starting their own businesses and are new to financial management.

Business planning plays a critical role at every stage of the business, says the report.

“Preparing a business plan pushes you to identify and assess the opportunities and threats facing your business. It helps ensure that you have an in-depth understanding of your market, the competition and the broader business environment,” it elaborates.

Effective planning takes into account long-term goals, objectives, strategy, tactics and financial review.

ACCA also advises startups to seek good financial advice and involve their accountants or individuals with financial expertise at the planning stage to take full advantage of their expertise in areas such as business planning, raising business finance, tax planning and setting up financial management systems.

Significant financial expertise may be needed to understand and evaluate the different financial options entrepreneurs may have. This includes knowing the company’s financial strength, financing cost, financial flexibility, business control, financial risk, personal finances and business strategy.

“Good financial control offers far more than just keeping track of purchases and sales. Rather than approach financial control as a chore to be left to the bookkeeper, your aim should be to see how the right capabilities can improve your business,” the report advises.

ACCA notes that business owners should gradually develop the capabilities of their in-house financial team.

“Choosing the right solution for your particular business takes careful planning. Your overall investment in financial capabilities — whether you are paying for additional employees, higher salaries for more skilled employees, training costs, use of external providers or upgraded systems — must be affordable and offer value for money,” it adds.

But financial management is at its most powerful when used to drive improvements in business.

Moreover, for many entrepreneurs, it could also lead to a successful business exit. Preparation for a successful exit typically begins far in advance of its final date.

Effective exit planning needs to start early and take into account a whole range of issues like timing, succession, management systems and tax efficiency.

Related posts:


Jun 4, 2016 ... The solution, said Jim and other global leaders speaking in Copenhagen, lies in investing in women and girls, a strategy that is crucial to ...