ISBC 2007

International Small Business Congress

Plenary Sessions

1. Positioning SMEs toward Free Trade Agreement s

Spread of FTAs (Free Trade Agreements) and Response of SMEs

Hyun-Jae LEE

Administrator, Small and Medium Business Administration (SMBA),

Republic of Korea

Abstract

With the gradual expansion of FTAs, the world economy is witnessing cutthroat competition and transcending national boundaries. SMEs that are playing a leading role in national industries are now facing with opportunities of increased overseas markets as well as challenges of decreased domestic markets due to the acceleration of FTAs.

However, it is not an easy task for SMEs to compete with multinational companies and survive this era of ultimate competition. SMEs, fundamentally, have comparative disadvantages against large firms in terms of finance, manpower, technology and overseas marketing. Therefore, overcoming the challenges of FTAs requires appropriate supports from the government and self-rescue efforts of SME themselves.

For this reason, the government should focus on inducing their self-elaborated competitiveness by promoting internationalization of SMEs not on simply rescuing or rewarding SMEs with direct support. This will be done by mapping out systematic, effective SME stabilization measures according to the national conditions. On this account, some major governmental support could be introduced; such as fostering innovative businesses; increasing financial assistance according to the growth potential of the company; establishing a systematic training system, improving the conditions of workforce demand and supply and creating the demand for new technology products.

Above all, it is important for the entrepreneur themselves to restructure their business with the spirit of global entrepreneurship based on market principles before receiving governmental support to survive global competition era.

2. Service SMEs: Challenges and New Opportunities

Growth and Challenges vis-à-vis Service MSMEs in Indian Economy: Role of State

G.U.K. Rao, Ph.D.

Director, School of Enterprise Development, National Institute for Micro, Small and

Medium Enterprises (NIMSME), Ministry of MSME, Government of India

Email: registrar@nimsme.org

Abstract

Leaping advances in information and communication technologies have acted as a negator of distances across the world. The developments and happenings at one end of the earth are reaching the other end in a matter of seconds. Added to this, markets being thrown open in the hitherto conventional and closed economies has catapulted services sector into the top ranks in the economies.

This is especially true of Indian situation. Already, the contribution of services sector to GDP in India , at 55 per cent, has gone far ahead of the manufacturing sector and the traditional agriculture. By the turn of the current decade, with a growth of 42 per cent, this sector is likely to override the other sectors.

The definition of the services sector is widely inclusive. Barring agriculture, mining and manufacturing, practically every other activity comes under the umbrella of services: education, health, transportation, finance, relating, information, hospitality, communication, entertainment, recreation, maintenance, beautification – practically every field involves a wide range of services.

This paper mainly aims at presenting a brief analysis of the changing status of services sector in the Indian economy. The presentation focuses on classification of services; contribution to the economy; key drivers of the sector; and, role of the State. The analysis of services sector covers the period 1950-51 to 2006-07, clearly tracing the changing trends in the behaviour of the economy and the major shifts in sectoral contributions. Important service sectors like IT and ITes, education and training in entrepreneurship, entertainment, retail markets, tourism, business development services, micro-finance for micro enterprises, telecom services contributing to the economy and exports have been discussed in the paper.

The lists at the Appendix elucidate the range of services in India and their correlation with global chains.

Characteristics of High-growth Service SMEs in Korea

Youn-Suk Park , Ph.D.

Korea Small Business Institute, Republic of Korea

Email: yspark@kosbi.re.kr

Abstract

This presentation discusses the characteristics of high-growth service SMEs in Korea .

We surveyed over 100 high-growth firms, defined as upper 10 percent of those experiencing the growth in the knowledge-intensive service sector from 2000 to 2005. The six factors are considered to investigate the characteristics of high-growth service firms: Innovative technology/service, marketing, finance, human capital, entrepreneurship, and public policy. The result shows that the entrepreneurship plays a major role in their growing process. In addition, the public policy related to technology and finance is important for firm growth in many cases (These are temporary conclusions which will be confirmed and added after conclusions are definitely set).

Forming Alliances to Compete on the World Stage

Douglas Wright

Chairman, the Worldcom Group, Australia

Email: dawright@wrights.com.au

Abstract

SMEs in the services sector are constantly looking for new customers, but now their target market has expanded globally. SMEs have the opportunity to deliver services almost anywhere; previously the preserve of multi-nationals..

Through Alliance Formation , SMEs can work together across borders to build new markets and to increase expertise. Douglas Wright's presentation examines how each participant can benefit from the formation of alliances?

Combing local expertise in a multitude of markets enables SME service providers to compete with the multi-nationals and to win business collectively and individually.

Our speaker reveals how the Worldcom Public Relations Group, the world's leading network of independently owned public relations counselling firms frequently wins competitive business pitches against large international consultancies. Composed solely of SMEs, Worldcom has more than 100-partner offices in 39 countries; 1,750 employees and revenue in 2006 of US $189.2 million.

3. Logistic Innovation for SMEs

Logistic innovation in the food supply chain

Johnathan Sutton

Category Technical Manager - Fresh Produce - Thailand & Malaysia ,

Tesco Lotus , UK

Email: Johnathan.Sutton@th.tesco.com

Abstract

The food supply chain has undergone a massive transformation in recent years. This has been driven by changes in consumer demand for quality products to be available 24 hours a day 7 days a week. Producers, suppliers and retailers have developed and invested in their systems to meet these demands using both high level specialist equipment and also using some simple, low cost options.

The issue between suppliers investing in innovation and consumers seeking lower prices will be a constant debate for many businesses for many years. However there are some very simple methods of improving the supply chain and driving the quality standards for food, in line with modern consumer needs. Keeping a clear focus on these costs and measuring the benefits, ensures that the value chains are intact and the greatest efficiencies can be delivered into these chains.

The modern trades are seen as the format to drive changes, but they must remain competitive within the fresh food market sector and innovation needs to add value to the process for consumers not just cost.

I will approach the significant relationships between innovation, cost, return, benefit and consumer expectations and why the development of the supply chain is important to Tesco and its consumers.

4. Internationalization of Micro-enterprises: Local Links-Global Reach

Enhancing the Role of Micro and Small Enterprises in Global Value Chains:

India 's Initiatives

Chukka Kondaiah, Ph.D.

Principal Director, National Institute of Micro, Small and Medium Enterprises (NIMSME), India

Email: ck@nisiet.org

Abstract

Globalisation has impacted the micro and small enterprises (MSEs) of the developing countries in different ways. In India , the enterprises resisting globalisation are facing uncertainty. Enterprises readily responding to new phenomena are niftily converting the challenges and threats to opportunities and strengths, thereby breaking new grounds and carving out a place for their products in the global value chains.

With a view to assisting the MSEs and facilitating their integration with the global value chains, the Government of India has initiated a range of schemes. Among these, the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is of historic significance.

The initiatives emanating from the Act take the form of easy access to finance, awareness creation and capacity building through information dissemination and training, counselling and escort services, mentoring and monitoring, and provision of business development services. Cluster development strategy with its proven results receives special thrust so as to integrate MSEs in the global value chains.

This paper discusses some of the major initiatives of the Government of India in the recent years towards promoting and strengthening the MSEs, and outlines the pertinent institutional mechanism. It also underscores the urgent need for the developing countries to formulate policies and programmes enabling the MSEs to qualify in terms of cost, quality, markets and other parameters, so that they can be compatible partners in the value chains under globalisation, and harvest the benefits thereof.

Linking Greater Mekong Subregion (GMS) SMEs to International Markets:

The Role of Global Value Chains and their Implications for GMS Co-operation

George Abonyi

Visiting Professor

Department of Public Administration and Executive Education Program

Maxwell School , Syracuse University

Email: gabonyi@gmail.com

Abstract

Economic cooperation in the Greater Mekong Subregion (GMS) is aimed at increasing linkages among the participating countries, and between the GMS and the global economy. A key challenge facing GMS economies is how to link more effectively domestic enterprises, particularly small- and medium-scale enterprises (SMEs), to international markets. The emergence of global value chains (GVC), and associated international production networks, is transforming production, trade, and investment in an expanding range of industries. This offers potentially significant opportunities for integrating GMS enterprises, particularly SMEs, more effectively into the international economy. Global value chains and production networks are creating an international economy increasingly characterized by fragmented and specialized production dispersed across borders. This can provide opportunities for smaller enterprises to enter into large-scale exports and build new competitive capabilities by concentrating on a few core activities; or to focus on specialized outputs for niche markets that may be regional or even global in scale. Although individual SMEs may face significant constraints and risks in responding to such opportunities, cooperation through enterprise clusters could provide a potentially effective mechanism to achieve collective efficiencies through joint action, and support the participation of GMS enterprises in global value chains. Such cooperation can build on existing GMS cooperation in areas such as transport and trade facilitation to address specific cross-border opportunities and constraints in selected industry value chains of shared interest. This can expand significantly the benefits of development through cooperation in the Greater Mekong Subregion, within the framework of an evolving regional and global economy.

Parallel Sessions :

1. Dynamic Changes of SMEs in Asia

2. Franchising and Beyond as New Business Creation Tools

Franchising: Global and Regional Trends

Matthew Shay

President, International Franchise Association, USA

Abstract

Over the years, franchised-small businesses have continued to make their mark on the globe, entering new, fertile markets and increasing their presence in a variety of countries. The International Franchise Association promotes the interests of franchising worldwide, and also encourages U.S.-based franchise systems to expand their operations internationally. The association is active in organizing trade missions, exhibitions and providing information about many countries.

Companies interested in expansion must assess whether introducing their brand into other countries will increase profits, revenues, market share and brand recognition. Currently, IFA-member companies have opened establishments in more than 100 countries.

International expansion, for any company, requires an awareness and acceptance of cultural, language, geographical and regulatory differences. Once these key items have been addressed, effective relationships with members, customers and potential partners can be fostered. Advances in technology have greatly eased the communication challenges that international expansion can sometimes present and have facilitated better relationships between parent companies and their franchisees.

3. Commercialization of Research and Development for SMEs

4. Market Cultivation: Roles of Entrepreneurs

Synergising International Entrepreneurial Opportunities for Agribusiness SMEs

Anthony M. Zola

President, MIDAS Agronomics Co., Ltd.

Mekong International Development Associates

Email: zolaam@gmail.com

Abstract

The presentation proposes that agribusiness SMEs play a key role in linking smallholder farmers to regional and global value chains. It is through agricultural SMEs that downstream and upstream linkages in the agriculture value chain are brought together. The agribusiness SMEs connect farmer networks with downstream processing and retailing networks that include regional and multinational firms. The presentation discusses the increasingly important role that agribusiness SMEs can play in strengthening the comparative advantage and competitive position of farmers, micro-enterprises, and small- and medium-scale agroindustries, and in expanding revenue generating opportunities for all stakeholders.

The presentation will:

· Examine key trends in global agribusiness;

· Identify agribusiness SMEs in the Greater Mekiong Subregion (specifically in Cambodia , China/Yunnan, Laos , Myanmar/Burma, Thailand , and Viet Nam );

· Discuss the implications for agribusiness SMEs of global trends in the agriculture sector;

· Examine how agribusiness SMEs can be integrated into regional and global value chains;

· Introduce selected GMS food and agricultural products with potential for processing and export; and,

· Recommend m easures / new business models and practices that agricultural SMEs can use to manage market risks in globalised agriculture

Market Cultivation: Roles of Entrepreneurs

Andrzej Herman

Dean, Collegium of Business Administration,

Warsaw School of Economics , Poland

Email: ahermaster@gmail.com

Abstract

A transition from the decline of a mass-production market economy to rise of value from knowledge economy. Knowledge economy and new entrepreneurship. Knowledge and the traditional elements of value creators: land, labor, capital. Knowledge economy and new service economy. Knowledge entrepreneurs in the knowledge markets. The role of customer knowledge. Intellectual property and the new entrepreneurs. E-Entrepreneurs. Academic entrepreneurship.

5. Roles of Trading Firms in SMEs Trade: Strengths and Limitations

Roles of Trading Firms in SME Trade: Strengths and Limitations

Shigeru Ueda

President, CEO&COO Shikoku Kakoki Co., Ltd. Japan

Abstract

Shikoku Kakoki is one of Japan 's leading medium-sized enterprises dealing with three business divisions, namely machinery, packaging materials, and food. As for our company's core business, machinery, we manufacture and sell filling machines that are used for filling cartons or cups with fluid foods. Although it's a niche market, we occupy a large share of the Japanese market and have been increasing our exports, and have become known among dairy plants worldwide.

By introducing some business practices of Shikoku Kakoki and medium-sized trading companies, Mr. Ueda, Shikoku Kakoki's CEO, will discuss the importance of trading companies and how they play a key role in SMEs' efforts toward becoming a leading medium-sized enterprise or international enterprise.

- Why did Shikoku Kakoki decide to do business with a medium-sized trading company rather than a major trading company?

- How does the trading company's role change, as the scale of the business grows from its time of founding, to the time it establishes an overseas presence, to the time it becomes an international company?

- What demerits arise from using a trading company?

- What does Shikoku Kakoki think is the trading company's role in the further development of internationalization in the Asian market from now on?

6. Searching for Global Outsourcing Opportunities

Searching for Global Outsourcing Opportunities

Lessons and Learning from India

Ravishankar Ananthakrishnan,

CoOptions Technologies Limited, India

Email: aravi61@yahoo.com

Abstract

Outsourcing is a specialised service where an external organisation – manages, improves, redesigns and creates low-cost, high-quality business processes, for an existing business operation or business function, which were previously handled by in-house persons, to improve cost, control and quality - thereby increasing profit and value to all the organisation's stakeholders.

The Internet and the imperatives for organisations to improve market share and profitability has made global outsourcing a must-have strategy in most organisations. However, global outsourcing requires a broad array of business skills that are essential ingredients for success

India has emerged as a global outsourcing hub, and controls 44 percent of the global offshore outsourcing market of software and back-office services. Some of the reasons are - improved infrastructure, proactive govt policies and abundant, skilled, English-speaking manpower

Business model innovation has been identified as the number one priority by global CEO's. Areas emerging in this area are

· Focus on transforming business processes with tangible business deliverables.

· Combines the strength & capability of global multinationals and frontline vendors

· Globally integrated model - world is one market & processes in different countries

· Second-generation outsourcing that combines business consulting services and IT services to deliver measurable business value to customers

· The focus shift - from cost - to value - for clients

· Newer pricing models, based on value or outcomes

Unlike costs being the primary driver for IT-based outsourcing, it is the availability of skills that is driving non-IT outsourcing. This new trend is Knowledge Process Outsourcing which delivers high value to organizations by providing domain-based processes and business expertise rather than just process expertise.

A number of large contracts are going with selective sourcing. Organizations are continuing to un-bundle large IT contracts and look at best-of-breed providers. The SME segment can make a difference in this area of outsourcing by focusing on specific niche areas. Speed, quality, flexibility and being ahead of the curve of knowledge, will be the key differentiator. KPO, an area which is growing rapidly has phenomenal scope for SME's, keeping the value proposition of outsourcing in focus.

Outsourcing is here to stay but vendors would have to align their objectives more closely with the customer and develop more refined metrics to meet client needs.

Searching for Global Outsourcing Opportunities

Dato' Hafsah Hashim , CEO ,

Small and Medium Industries Development Corporation (SMIDEC) , Malaysia

Email: hafsah@smidec.gov.my

Abstract

The Malaysian economy has gone through a substantial transformation moving from a commodity-based economy to a manufacturing and services-oriented economy. As a developing country, Malaysia has put emphasis on comprehensive policies and strategies to spur the development of the industry and to take advantage of the changes brought on by globalisation and technological changes. Malaysia is today one of the most open economies in the world, with total trade registering more than 285 per cent of the Gross Domestic Product. In 2006, the World Trade Organization ranked Malaysia as the 19 th largest trading nation, 19 th largest exporter and 23 rd largest importer.

By virtue of prudent planning which include adequate policies, strategies, infrastructure and logistics facilities, Malaysia has been successful in attracting multinational corporations (MNCs) to locate in Malaysia and thus provide outsourcing opportunities for Malaysian companies.

The presentation will comprise an overview on the development of outsourcing in Malaysia covering electrical and electronics, automotive, ICT and logistics services sectors as well as the role of SMEs in the outsourcing activities. The presentation will also include several aspects on current strategies to promote Malaysia as a preferred outsourcing destination.

7. Young Entrepreneurs

YOUNG & SUCCESSFUL IN POLAND

Anna Czechowicz

Vice Director, Small Business Chamber Warsaw

Email: promocja.mirip@pro.onet.pl

Abstract

It is not easy to set up and run a company in Poland . First of all, it covers high risks and secondly – as young businessmen point it out – Polish universities and colleges do not offer enough practical background. ‘Theoretically, the State policy is aimed at encouraging young people to stay at home and establish their own companies. But young entrepreneurs do not feel being supported. 'If Poland wants to stop young people from leaving the country it has to create more friendly atmosphere in the above mentioned area.

Young entrepreneurs actively participating in Academic Enterprise Incubators estimate the risks of setting up a firm in Poland as very high. In the scale from 1 to 10, the average response was 7.4. Much lower risks are taken – in their opinion – by a person who goes to work abroad. This research additionally showed that Polish universities and colleges do not prepare their graduates to be able to found their own firms.

The entrepreneurs interviewed estimated the amount of knowledge in that area acquired by them while studying at the average level of 2.4. ‘What we miss is practical training. We have too many classes dealing with theory. What we need is interactive ‘case study' exercises and other practical courses as it is done in other countries. Students should be asked to run their own companies while studying. In the Netherlands , for example, for third semester students of Economics it is a must within the framework of incubators of enterprise.

So, its not easy to be a young entrepreneur in Poland . Can you imagine to think about starting a business without money, with no chance to get a loan, not knowing where to turn to for some practical or legal advice? All you have is strong motivation, a PC, some theoretical knowledge, perhaps some savings. Do you think it's enough to become an entrepreneur? Would you dare to become one?

But you should know there are young people all over Poland who become businessman, starting from scratch. Their businesses are growing and become efficient and innovative. They are able to compete with other companies selling successfully their services or products abroad.

You will be given a general view of Poland , SME organisations, as well as the Polish legal system. From my presentation you will learn about young SMEs entrepreneurs in Poland , who have chosen to run a business, knowing there is not much help from the outside. Also, an example of successful cooperation between young entrepreneurs will be given. You will see how young people start to become smart.

Drivers to Internationalization in a SME Company with Yung and Dynamic Management

Giorgio Secchi

President, Luxlife S.r.l. , Italy

Email: g_secchi@hotmail.com

Abstract

Nowadays luxury is considered one of the hottest business topics for young people willing to invest in a worth and fascinating field. Off course Luxury offers the opportunity to deal with high end companies and people and can lead to high profits when the activity runs properly.

One of the common error while dealing with Luxury is to consider it as a special “world” where everything is easy and the worth comes with almost no efforts. It's not like that: luxury, like any other field of business has its own rules, difficulties and high level of competition; in other words it requires a high professionalism and an adequate management culture.

When a newborn company wants to star a business based on internationalization is a key factor to focus on a specific and structured idea. To which country or area address, in which way to explore the new market and how to set a presence there are the strategic bases to any business plan.

Once an initial structure has been settled, whatever it implies a presence abroad or a good networking from a central hub, it's essential to have a good balance between the initial business plan (the starting idea) and the feedbacks received from the work on the field (the real market). Only in this way a company can create the right path to international success.

Luxlife is an example of how to deal with luxury starting from an idea (representing Italian top level design brands in China and Far East ), creating a structure imprinted on strategy and organization, develop this structure updating it constantly looking both at the initial business plan and at the feedbacks received from the work on the field. Today Luxlife has a well-built presence in China with a good networking activity; the new challenge is to expand the structure and the concept created for China to other Asian countries in order to become more and more the main referent of the Italian luxury in the whole area.

Business Model Study: Business Plan Development by Utilizing Brand Value

Son, Seungpyo (Brian Son)

Korean Minjok Leadership Academy , Korea

Email: kykymhng@gmail.com

Abstract

The relativity between brand values and high market power has been previously verified in scientific and academic journals. Utilizing the brand value of Korean Minjok Leadership Academy (KMLA), I was able to establish the gift shop in KMLA. Now, I'd like to share the procedures and secrets in the business establishment and management. Also, the consumers' reaction to KMLA gift shop was somewhat intriguing, which could be also dealt out in the presentation.

In an economics club called Junior Achievement, I was given a chance to practice a business simulation. KMLA had the best brand value in Korean high schools as Harvard and Oxford was in the university level to Koreans. And this led me to start the adventurous but struggling establishment of Korea 's first high school gift shop.

Most importantly, the business plan needed a thorough idea for product development and sales distribution. As a result, I decided to benchmark some of the remarkable samples. Many samples what I have bought in many universities, especially in Harvard, Yale, Princeton, Columbia and others, and Suzhou , China were useful to benchmark.

KMLA Gift Shop projects to affiliate with other companies and stores to sell the products, widening the possibility of profit including online sales. By 2008, we plan to supply items to 100 different stores. And the project revenue is expected to be over $600,000.

8. Managing Market Risks for SMEs

Ethics of Corporate Social Responsibility (CSR)

Darryl Macer, Ph.D.

Regional Advisor in Social and Human Science s for Asia and the Pacific, Regional Unit for Social and Human Science s in Asia and the Pacific ( RUSHSAP ), UNESCO Bangkok

Email: d.macer@unescobkk.org

Abstract

Corporate social responsibility (CSR) is a growing trend, also in Asia . CSR encompasses a wide spectrum of activities: human rights, labor standards, environmental management, consumer protection, anti-corruption, corporate philanthropy, and more. This paper will review different methods for measurement of CSR with some examples of work that is ongoing in RUSHSAP . There are both conservative and liberal views on CSR, and these will be discussed. The ethical obligations of companies to share in the solidarity to society are becoming more commonly expressed in the context of CSR. The concept of social responsibility is also stressed in the UNESCO Declaration of Bioethics and Human Rights (2005), which is the most recent reaffirmation of rights to health care, food and water, which are human right questions that are hotly debated because they could also pose stricter obligations upon states to provide health care and a minimum quality of life to citizens. Do these obligations also apply to corporations, including SMEs? What is an ethical way to be a member of a community in the Asian context?

Activating and Trends e-Trade and PAA of SMEs in the East Asian Region

Ki-Kwan YOON, Ph.D.

Chungnam National University , Republic of Korea

Email: kkyoon@cnu.ac.kr

Abstract

This paper discusses the mutual cooperation among East Asian Region in e-Trade and PAA of SMEs. A summit meeting between Korea and Japan in September 2000 called for a joint initiative in the field of e-commerce with the establishment of an e-commerce policy committee between the two governments, promotion of paperless trade integration of next generation e-commerce environment project and cooperation in establishing a safe and reliable e-commerce infrastructure. This type of initiative must be expanded to achieve borderless e-commerce for the whole of East Asia Government initiative for paperless trading between Korea and Japan . Korea has already promoted 4 projects for the upbringing of SMEs within APEC region in the past, but there is no project which is presently promoting. So, most countries in East Asian region demands that Korea, which enjoys the comparative advantage in e-Trade field, promote the new project in order to bring up SMEs in East Asian region, Japan, on the other hand, has three projects for upbring of SMEs within APEC region in operation. I hope that I will propose the following concrete plans as outlined below. Firstly, Strengthening of SMEs structure, secondly, Upgrading of e-Trade and PAA activity, thirdly, Attaining Bogor Vision of APEC/2020 economies, lastly, Realizing East Asian Free Trade Area (EAFTA).

9. Venture Capital for SMEs: Global Trend

Venture Capital for SMEs in the Arab Gulf Cooperation Council States

Badr-El-Din A. Ibrahim , Ph.D.

Economic Expert, Office of Undersecretary, Ministry of

Finance, Sultanate of Oman

Email: badr_el_din@hotmail.com

Abstract:

Venture capital (VC), (capital provided by individuals, investment banks, and other specialized institutions for new business ventures by investors other than the original proprietors) is fairly new phenomena in the AGCC states. Small AGCC businesses traditionally rely on savings, personal loans, family reserves, and contributions by friends. The main reasons behind this low VC finance is that VC requires entrepreneurial expertise to assess the viability of new business ideas, the willingness to invest over the longer-term and to sacrifice liquidity, and management skills in working with enterprises in helping them grow and scale up. VC remains a nascent industry for SMEs in the region. The promising signs for the future of VC in the region are linked to the availability of foreign VC seeking potential investment, the present ample liquidity on the back of the recent surge in high oil prices, the growth of private wealth in the region that can provide a base for VC finance, and the government initiative to foster this sector via privatization and encouragement of VC as a means of financing.

Currently in AGCC states there are basically two types of VC financing vehicles: Western (conventional), and Islamic. The growth of the region Islamic finance (and Shariah -compliant, AGCC-ownership VCBank in Bahrain ) presents a good opportunity for the development of local VC industry, as Islamic profit and loss sharing formulae match the financing techniques used by the western VC industry. But in practice, Islamic banks in the region (up to date) invest only a tiny portion of their portfolio in VC- type Modarabah and Musharakah transactions, and more on trading-based debt finance.

Despite the surge in oil prices in recent years, the AGCC longer-term challenges of development still remain. The low employment elasticity of output growth in AGCC provides a challenge of securing jobs for the new generation of job seekers who will enter the labor market. The private sector development and encouragement of entrepreneurship and innovations are crucial for providing such jobs. VC, we argued, is a powerful tool to encourage private sector investment and create job opportunities. It can resolve the two troubles of insufficiency of funds and inappropriate collaterals designed for domestic banking credits to SMEs which make it difficult to obtain financing, particularly for emerging SMEs. Overall VC avoids some of the SMEs debt financing constraints and can link entrepreneurs with capital, and meet the needs of the SMEs segment of the market. Besides, VC is an economically-viable, profit-based & inflation-avoiding lending formula. The Islamic type VC avoids double-burden of loans repayment & loss of livelihood in the case of total failure of the project.

The paper attempts to review the major financial institutions working to provide VC for SMEs in AGCC states, and answering the question of why VC is not working in the region. The paper also recommends some measures to increase VC portfolio including the activation of Bahrain-based Gulf Venture Capital Association (GVCA) which is committed to support the growth of strong VC within the region, extension of venture-type Islamic VC modes in some conventional banks of the region, provision of tax and other incentives to encourage VC industry, and fostering local entrepreneurship.

Venture Capital for SMEs: Global Trends

Kenneth E. Loucks, Ph.D.

Niagara Enterprise Agency , Canada

Email: Ken@availabletech.net

Abstract

The Niagara Enterprise Agency(NEA) and the Niagara Growth F und(NG F ) are part of a global trend to mobilizing community based financial and technical resources to facilitate start up and expansion of local firms with potential for domestic and international growth.

The Agency provides access to community technical resources that assist potential growth companies to become investment ready. It also manages the Niagara Growth F und which is a Community Small Business Investment F und that provides equity as part of a complete financing package.

In its fifteen years of existence NEA has facilitated the Niagara Region in achieving independent but symbiotic relationships with the major centers of finance and professional services while mobilizing local liquidity and enhanced professional business services.

Three current clients provide dramatic case examples of the leveraged economic benefits obtained by this unique combination of a not-for-profit Agency and a for-profit equity investment fund.

10. Women Entrepreneurs Forum

Women-Owned Small and Medium Enterprises:

Analysis of Factors Influencing the Growth Process

Muhammad Azam Roomi

Director of Research, Centre for Women's Enterprise

University of Bedfordshire Business School, UK

Email: muhammad.Roomi@beds.ac.uk

Abstract

The purpose of conducting this study is to highlight the problems faced by women entrepreneurs during the growth process as well as to determine the main factors which contribute to the growth of enterprises and how these factors influence the adoption of different growth strategies. Initial data was collected through 516 on-line filled questionnaires. In addition, the qualitative data collected through one on one interviews of sixty women entrepreneurs was inductively analysed and interpreted in response to open-ended questions.

The research confirms that most of the women don't opt to develop growth-oriented businesses. Those who are ambitious and interested in growth suffer from lack of access to, including control over, capital, business premises, information and technology, production inputs, appropriate child care, qualifications and/or experience, training facilities and appropriately tailored assistance from business development agencies. Non-effective accumulation and utilisation of social capital hinders their access to appropriate decision-making circles, which limits their probability of accessing critical management and financing resources. The study also finds that women entrepreneurs perceive that the key factors which have made a considerable difference in their growth performance are high quality and development of new products and services, effective informal networking, appropriate marketing, effective use of website and other selling skills, appropriate business training and management experience, in addition to the right support by business development agencies.

Dynamism and enterprise: Female Entrepreneurs in the United Kingdom

Spinder Dhaliwal, Ph.D.

School of Management , University of Surrey , Guildford , UK

Email: S.dhaliwal@surrey.ac.uk

Abstract

Within the SME sector females are responsible for one third of all start-up businesses in the UK . They are vital to the economy and the future growth of the SME sector. Their dynamism and enterprise enriches the sector.

The study is effectively split into three stages. The first stage used desktop research to look at enterprise initiatives currently in place. 128 UK initiatives have been identified, offering a mix of business support, incubators, mentoring and business tools. The second stage was to send a questionnaire to targeted women. A postal survey was conducted on one thousand women selected from a target audience. The final stage was to conduct a series of interviews and focus groups in order to elicit more detailed answers and to follow up certain areas of the questionnaire. Several focus groups as well as face-to-face interviews were conducted on a limited number of the women.

The findings show that the main challenges faced by the women were a lack of confidence and financial pressures. The reasons for starting a business ranged from finance, independence, flexibility, childcare friendly and lifestyle choice. Others started up following redundancy. A significant number of women were eager to develop an idea they firmly believed in. The most important source of start up capital was personal savings, followed by family and then banks and/or financial institutions.

The most popular sectors women started businesses in were coaching/mentoring, business services, s ales/marketing/PR, media & publishing and education/training. A s ignificant number were in IT/computing. A significant number of respondents hold a degree or postgraduate qualification. A significant proportion of respondents have children of an age where childcare is an important issue.

The study provides an insight into the motivations and barriers of women in SMEs. For academics this paper adds to the growing literature on female entrepreneurship. For business support professional and policy makers the paper provides recommendations for use when supporting future initiatives and produce recommendations highlighting the possible direction of future provision.

Women Entrepreneurs Forum

Kobkarn Wattanavrangkul

Toshiba Thailand Co.,Ltd.

Email: kobkarn@ttc.toshiba.co.th

Abstract

It was 37 years ago when my parents established the joint venture with Toshiba Corporation in Thailand with only 80 employees for Thai domestic market. At present under our second generation of management the business has expanded and become production base of Toshiba brand for Japan , Asian countries and nearby continent market with about 4,000 employees.

To achieve them, we have gone through many ups and downs; many severe economic crisis and growing global competitions. The key success throughout these years is only one thing; “people”. People who work with “heart” will endlessly create the work that is “different” and “special”.

At our companies everyone is equal and equally important regardless of the position and gender. Everyone is equally given a chance. No one is more than one red brick or less than one brick. The role of Top Management is to have vision and the strategy how to place each red brick to fit our plan in order to realize our ultimate goal – beautiful architecture for all to admire and appreciate.

With the rapid changes of the world our people have learnt to adapt themselves well to use the crisis as opportunities to grow. The key success comes from our adaptability and flexibility to new challenge. Our future goal can only be realized by the “fighting spirit” of our people who have “heart” in what they are doing.

With regards to the question whether women are emotional or not, I believe that being human, men and women are all emotional. Emotion brings passion at business and the passion will often develop creative mind. Being emotional is not a problem itself. I believe that how a company treats emotion positively and appropriately will be the key to build up its characteristics.

For fruitful life, we must have friends. I was awarded “The Leading Women Entrepreneurs of the World” and I have gained rewarding experience by joining these international women networks. We are all human beings regardless of the nationality and have similar problems such as family affairs. Friendship helps us expand our knowledge and develop our skills. Companionship promotes us to gain confidence in business and to open our eyes to the possibilities for the future. Please join such networks.

Have courage and take the first step. Trust yourself, make a decision and go toward success with integrity. Have heart in whatever you do and everything will be accomplished.

(From Asian Business Women's Forum in Osaka , November 2006)

Women Entrepreneurs and Their Use of e-Business

Dr. Lorna Wright

Schulich School of Business

York University

Toronto , Canada

Email: lwright@schulich.yorku.ca

Abstract

This presentation will give the results of a two year study of small and medium-sized business owners in 14 APEC economies. It will show not only the differences between men and women business owners in how they use e-business processes and the challenges they perceive, but also the differences among women themselves from the different economies. A particular focus will be on e-business use for doing business across borders. The presentation will end with recommendations for both women entrepreneurs and government policy makers.