November 2007 Archives

A regional meeting of small and medium enterprises was held in Brunei to foster support and development of the sector in Asean countries. Discussions between Asean member-countries and dialogue partners China, Japan a nd South Korea became a focal point of the meeting wherein participants shared best practices in managing and operating SMEs. The 21st Meeting of the Asean Small and Medium Enterprise Agencies Working Grou p from Nov. 21 to 23, emphasized the need to further bolster specific developme ntal areas among Asean countries, which include entrepreneur education, governm ent assistance, outsourcing, and trade promotion. Also part of the agenda was a follow-up on previous meeting regarding SME polic y directions within Asean member states, which include host Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

Indian IT firms are targeting small and medium-sized enterprises for expansion, mapping out plans to tap what it describes as the fastest growing segment in a developing economy. According to a report by the Times of India, the local industry was aiming at s preading IT adoption through the software-as-a-service model (SAAS). Using SAAS, information technology services will be offered on a per-usage basi s, similar to paying a utility service such as electricity, water, or cable TV. This will provide affordable monthly pricing schemes attractive to the SME mar ket. Under the setup, an IT firm would provide an application platform and end-user help desk, while offering hosting and maintenance services. End-user SMEs would only need an Internet browser to access their services and will be charged bas ed on the services they would utilize. Several SME clusters in India were pilot-tested for the SAAS model, particularl y in Mallapur in Hyderabad and Adityapur in Jamshedpur.

A new financing model was being developed to stop a steep fall in bank lending to small and medium-sized enterprises (SMEs). A partnership between the International Finance Corp (IFC) and microfinance ins titution CARD Bank would introduce a banking model, which they hope could becom e the industry standard in lending services to SMEs. Industry figures showed bank lending to SMEs was falling short by P67 billion t o P180 billion despite a Magna Carta for SMEs that requires banks to allot at l east eight percent of their loan portfolio to middle-market companies, the Phil ippine Daily Inquirer reported. The report said the model would depart from the traditional lending approach. The tie-up would concentrate on building SME banking products, which includes m arketing and further development. It also would look at adopting a robust manag ement information system which can support credit scoring and credit relations management, the report further said. Although the IFC would pilot-test the model with CARD Bank, the World Bank's pr ivate sector arm was expected to look at partnerships with other microfinance i nstitutions or commercial banks, which are keen to diversify its portfolio and tap the SME market.

By Karen Galarpe Editor-in-Chief, SME Insight We're pleased to let you know that the latest issue of SME Insight (November-De cember 2007) is now out in bookstores and magazine stands. Our theme for this i ssue: YOUNG NEW ENTREPRENEURS. Learn business insights from our featured successful young business people: * Amina Aranaz-Alunan of Aranaz bags * Ino Caluza of Viktor jeans * Dick Balajadia of Cafe Half Moon and I Have Two Eggs * Quark Henares of Blow-up Babies * A group of friends who started Cerealicious They're young and passionate and reveal to us their secrets to business success . We're also taking a look at how Buena Mano Crafts made it in the international market with their Christmas decor. And of course, there's the info-packed Toolbox, our mini-MBA. Learn about just- in-time inventory, the why's and how's of giving the 13th month pay, how to cre ate an e-mail system for your company, and so much more. After you've read our latest issue, do drop me a line, will you? Send your e-ma ils to kgalarpe@hip.ph or post your comment here. Have a great day!

Business software company Business Objects is targeting small and medium enterp rises, a market where it sees faster growth in the country. Previously the company had a clientèle of mostly large enterprises, including Unilever, Globe Telecom, Philippine Airlines, Bank of the Philippine Islands, a nd Cebu Pacific. Their current solution offers business intelligence for SMEs, in which data cou ld not only be stored, resourced or mined but likewise analyzed through busines s process automation. Business Objects' local partners include Sybase and ACW Distribution. According to Business Objects executives, a special pricing package is being offered to SMEs, which they classify as organizations with less then 1,000 employees.

By Sarah Velasco Gift-giving in business is one way of building relationships among clients, col leagues, and personnel. It is a means of strengthening ties and creating a posi tive image for your company. Gifts are usually given to show appreciation, to c ongratulate, to motivate, or to express an apology. Despite the goodwill involved, however, most of us find gift-giving to be a vex ing task. Deciding on what gift to give is already a challenge, but factor in t he need to remain within the bounds of professionalism and the fun fizzles out. Hopefully, these few simple guidelines will make it easier for you. 1. Think of your purpose Knowing why you are giving the gift makes it easier to think of what is appropr iate. For instance, a gold watch is traditionally given to retirees, or a box o f cookies may go with a sincere apology. 2. Give it a personal touch Pay attention and consider the recipient's interests and hobbies. Is he or she into the organic trend? Then why not include a book on growing an organic veget able garden? Or if the person is into golf, then put in a helpful book on how t o make that swing even better. The recipient will surely appreciate the thought that you've put into your gift. And don't forget to enclose a handwritten pers onal note with it. 3. Consider the company's policy Some companies have concrete rules on gift-giving and receiving, while others h ave informal and unwritten policies. Just to be sure, you may want to check wit h their HR first, or even with the secretary. Since it's still part of business, some companies opt to have their logos inclu ded. Although this is discouraged, if you really need to have your logo to go w ith the gift, keep it small. 4. Avoid going beyond the limit The company's budget limit, that is. Make sure that your gift is not too expens ive so as not to make the recipient feel uncomfortable. You also don't want to give the message that you're bribing someone! 5. Keep in mind the cultural differences What may be a decent gift in this part of the world may be offensive in another . For instance, the Japanese have more ceremonious gift-giving practices than t he Americans; while the Arabs and other Muslim countries find it offensive to b e given alcohol, knives, and anything that has something to do with pigs (leath er made out of pig skin, pork, pig figurines). 6. Consider a corporate gift basket If you really don't have time, then giving a gift basket may just be the soluti on to your gift-giving dilemma. Gift baskets can be customized and come in very presentable packages. They typically contain an assortment of little edible it ems that can be shared with the rest of the office staff. Not only that, creati ng a personalized basket by contacting a gift service company is just a phone c all or a few clicks on the Internet away. 7. Check the delivery details If you're having the gift delivered, make sure that you give the correct addres s and recipient information. You wouldn't want your gift to be delivered late o r to bounce back to your doorstep just because you wrote the wrong info. Instru ctions should also be given on what to do with the gift in the absence of the r ecipient.