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Business Tips for SMEs

Internal Factors That May Affect Business Organisation

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The role of company leadership is an essential internal factor. Your leadership style and other management style impact organizational culture. Often, firms provide a formal structure with its mission and vision statements. Some cultural implications which result from leadership approaches are value of employees; the positive or negative nature; and effectiveness of communication level of family-friendliness.

In a high performing workplace, the workers not only have talent, but they also work better together. The employees and departments collaborate on ideas and resolutions. The internal factors basically include the inner strengths and weaknesses. Internal factors can affect how a company meets its objectives. Strengths have a favorable impact on a business. Weaknesses have a harmful effect on the firm.

Some examples of areas which are typically considered internal factors are:

  • Financial resources like funding, investment opportunities and sources of income.
  • Physical resources like company’s location, equipment, and facilities.
  • Human resources like employees, target audiences, and volunteers.
  • Access to natural resources, patents, copyrights, and trademarks.
  • Current processes like employee programs, software systems, and department hierarchies.

Companies must also consider softer elements like company culture and image, the role of key staff, operational efficiency and potential. The most common internal factors that might affect your business in various ways are:

These are a part of the operational and administrative procedures. This includes disorganized or inaccurate record keeping. Interruptions to your supply chain and outdated or faulty IT systems are also factors you should evaluate. If you do not overcome these, your customers might see you as unreliable. You can also lose all your data.

These affect your firm’s ability to reach the goals in the business plan. They could be due to the impacts of changes in technological evolutions or customer demand. These factors could pose as threats as they can alter how customers perceive your product. Based on these, customers might think a product is overpriced, dull and outdated.

Your business needs innovation in order to keep up with competitors. It is essential to get one step ahead. Innovation could come in the form of marketing. It could also be through promotional initiatives in the marketing plan, staff training, and welfare. Embracing new technology is the best way to keep up with technological advancements. A lack of innovation can pose a serious risk to a growing business. No innovation will cause a company to remain boring. The company will become dull, stagnant and irrelevant.

The financial risks depend on the financial structure of your business. It is also dependent on your business transactions and the financial systems. For example, changes in interest rates or being overly reliant on one customer could affect business.

Employees are vital to business success. But, there are risks associated with them. For an industry, strike action could lead to a lot of problems.

CCM Teams Up with SME Bank to Develop Bumiputra Vendors

SME Bank group MD Datuk Mohd Radzif Mohd Yunus (left) shaking hands with CCM Group MD Leonard Ariff Abdul Shatar after signing a partnership to develop Bumiputera Vendor
KUALA LUMPUR: Chemical Company of Malaysia Bhd (CCM) and the Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) have launched a partnership to develop Bumiputra vendors.

The two parties had on Wednesday signed an MoU to kick off a three-year collaboration for the Bumiputera Vendor Development Programme (BVDP). CCM said the agreement was in line with the government’s aspiration to set up a Bumiputra Commercial and Industrial Community (BCIC) under the National Development Policy. The BVDP aims to develop capable Bumiputra vendors who are able to supply quality goods and services competitively. The collaboration, which ends on Dec 31, 2017, will see SME Bank offering financial assistance to eligible small and medium enterprises (SMEs) within CCM’s business ecosystem, via financing schemes

SME Bank’s subsidiary, the Centre for Entrepreneur Development and Research (CEDAR), will provide entrepreneur development training to the vendors. CCM group managing director Leonard Ariff Abdul Shatar said the company remains committed in supporting local businesses and continuously strives to contribute back to the economic growth of these communities, in line with its vision “Enhancing Quality of Life”. “As a key player in the pharmaceutical, fertiliser and chemical industries, CCM is well positioned to assist Bumiputera vendors increase their capabilities and competitiveness through our vendor development initiative.

“With the support from SME Bank and CEDAR, we are confident that the programme will certainly be beneficial and have a lasting impact on our participating vendors,” said Leonard Ariff.

SME Bank group managing director Datuk Mohd Radzif Mohd Yunus expressed the bank’s commitment to ensure the success of the vendor development programme. “We are committed to ensuring that the programme will be beneficial to both CCM and the vendors and trust that the holistic approach we offer will greatly improve the sustainability of the businesses by the entrepreneurs,” he added.

Published in the Star, 5 August 2015

How to Have An Indomitable Spirit During Sales Recession

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“I can’t do it!”; “It is too tough!”; “It’s hopeless”; “Market is bad!”; “Competitor keep throwing prices!” These have been the typical responses I hear throughout the year thus far. Honestly, it is not new. I hear these limiting mindsets all the time – even during good times. Amid the current state of economic uncertainties, how would you boost your resilience and persistence to keep fighting for sales by having an indomitable spirit? The answer is “ABC”!
1. AIM:
What do you need to do every single day to deliver results? Many people go to work aimlessly. They have no idea what they need to do or what they need to accomplish. The first step is always have an aim – be it a target or a goal. How many prospects do you need to talk to daily? On the personal side, what do you want to achieve? Do you want to travel? Do you want to change your car? Do you want to save up for your children’s education? Let your life goal become your sales goal. By aiming the right target, you will focus on the right things.
what we say everyday becomes the mindset. An example of wrong mindset is when one tends to think that “the targets are too high and I will never achieve it”. The right mindset would be “the targets are high so I better put in more effort to achieve it!” What are your beliefs? You got to be aware what you say every day because it affects you and the people around you. Change your mindset, change your beliefs.
Take the challenge! We are in the environment where it’s harder to get sales but are you ready to take the challenge? However, if you do take up the challenge, remember this – challenges are never comfortable. If you are used to a comfortable environment, you will not survive in tough environments. That’s why you need to challenge yourself out of your comfort zones or situations where you are not accustomed to. Many veteran sales people are comfortable serving existing customers but right now, they need to hunt, make cold calls and acquire new clients which requires lots of effort and the ability to handle rejections. If you challenge yourself, you will ultimately grow, progress and eventually create more opportunities than you can ever handle. Challenge yourself to achieve your targets or go beyond it!

No matter how tough the situation is, keep your fighting spirit high. Build that indomitable spirit that you cannot be conquered by negativity, rough competitors or demanding customers. Get up every day by having an AIM what you need to do and accomplish; BELIEF you can do it with the right mindsets, and CHALLENGE yourself to achieve your goal no matter how difficult the situation is. YOU CAN DO IT!

SME Bank Capai Patuh Syariah

news001 bigSMALL Medium Enterprise Development Bank Malaysia Berhad, atau SME Bank mencapai sasarannya untuk menjadi sebuah Institusi Kewangan Pembangunan (IKP) patuh Syariah.

Setakat ini, portfolio kewangan Islam SME Bank sebanyak 86.5 peratus iaitu RM4.31 bilion.

SME Bank mensasarkan pencapaian 90 peratus portfolio kewangan Islam menjelang Disember 2015. Portfolio kewangan Islam SME Bank di awal penubuhannya pada Oktober 2005 adalah sekitar 15 peratus.

Keputusan untuk menjadi IKP patuh Syariah adalah tepat pada masanya memandangkan industri Kewangan dan Perbankan Islam menjadi instrumen kewangan utama di peringkat global. Perkara ini terbukti melalui Laporan World Islamic Banking Competitiveness Report 2014-2015, participation Bank 2.0.

Laporan tersebut menyatakan, aset Kewangan dan Perbankan Islam di peringkat global menunjukkan kadar pertumbuhan tahunan kompaun (CAGR) sebanyak 17 peratus daripada 2009 sehingga 2013.

Dari segi nilai, aset kewangan Islam di peringkat antarabangsa di bank komersil ditetapkan melebihi AS$778 bilion (RM2,893 trilion) pada 2014.

Pengarah Urusan Kumpulan SME Bank, Datuk Mohd Radzif Mohd Yunus berkata, pengurusan Bank mengambil pendekatan menyeluruh dalam merancang dan melaksanakan transformasi ini.

"Fokus utama termasuk memastikan kakitangan mendapat pendedahan dan pengalaman secukupnya bagi menguruskan portfolio kewangan Islam SME Bank.

Berpandukan faktor ini, pihak Bank melalui anak syarikatnya Centre for Entrepreneur Development and Research Sdn Bhd (Cedar) bekerjasama dengan IBFIM untuk membangun dan melaksanakan program latihan Chartered Islamic Development Banker (ChIDB),” katanya.

Katanya, sebagai program pertama seumpamanya dalam industri ini, ChIDB disasar melahirkan pegawai dan eksekutif terlatih diperlukan dalam industri kewangan Islam.

"Seramai 487 kakitangan SME Bank telah lulus peringkat pertama Certified Islamic Development Banker (CIDB) dan seramai 202 kakitangan lulus peringkat kedua Professional Islamic Development Banker (PIDB).

"Daripada jumlah ini seramai, 296 kakitangan SME Bank menjadi kumpulan pertama menamatkan program ini. Pihak Bank juga memberi tumpuan terhadap pejabat pentadbirannya bagi memastikan kelancaran proses peralihan Bank menjadi ke IKP patuh Syariah sepenuhnya,” katanya.

Beliau berkata, proses meyakinkan pelanggan untuk berpindah ke Kewangan Islam adalah mudah.

"Hal ini kerana konsep kewangan Islam menjamin kesaksamaan kepada semua pelanggan dan transaksinya," katanya.

"Walau bagaimanapun, pihak Bank tetap mengambil langkah bersepadu bagi meyakinkan para pelanggan untuk memindahkan akaun mereka menjadi akaun patuh Syariah sepenuhnya," katanya.

Tambah beliau, perhubungan dengan pelanggan yang berterusan juga diadakan di samping menawarkan proses penukaran percuma, pengekalan jumlah pembayaran balik dan juga terma dan syarat pembiayaan.
v "Usaha-usaha ini telah membuahkan hasil apabila peratus pertukaran akaun adalah tinggi. Semua usaha ini bersama-sama dengan produk Bank yang berkualiti tinggi, kompetitif dan inovatif semestinya menyokong aspirasi kerajaan dalam menjadikan Malaysia sebagai hub kewangan Islam antarabangsa yang utama," katanya.

Published in Sinar Harian, 20 June 2015

SME Bank targets RM252 mln financing in Sabah this year

news001 bigTAWAU: Small and Medium Enterprise Bank (SME Bank) has now been transformed into a fresher, people-friendly bank providing financing loans not only for Bumiputras but non-Bumiputras as well in accordance with their business sector and merit application.

Deputy International Trade and Industry Minister Chua Tee Yong said SME Bank has met with 1,666 companies and approved RM379 million financing loans in their outreach program since January this year. SME bank has played vital roles in developing the SME sector and accelerating the increase of SME entrepreneurs throughout the country.

Chua said SME Bank has carried out a series of outreach program for the last three years to generate a good eco-system in terms of achievement as well as to reduce business risks and challenges. The bank not only assists SME entrepreneurs to get their financing loan, but also helps them in managing their business through counseling.

He said this in a press conference after officiating the 14th Outreach program at a hotel here yesterday, which was also held concurrently throughout Malaysia.

“It was learnt that some of the loan applicants were rejected due to the ins and outs of their application method and documentation. The failure of repaying the loan is no longer an issue so far as it is not so serious and still manageable.

“Therefore, a series of outreach program was held by SME Bank to allow the SME entrepreneurs/applicants to get more updated information and advice as well as to become more familiar with the terms and conditions of loan application.

“Nowadays, the government is focusing on productivity and exportation for the sake of international SME market expansion. Meanwhile, SME Bank will also work alongside SME entrepreneurs during this challenging economy in order to generate positive outcomes,” said Chua.

He strongly urged all SME entrepreneurs to be brave and not give up easily when facing hurdles and challenges. They should be patient while amending their business plan and documentation.

On the other hand, Group Managing Director of SME Bank, Datuk Mohd Radzif Mohd Yunus disclosed that Sabah Region has always been one of their focus areas and since the opening of their branches in Kota Kinabalu and Tawau, they have approved more than RM1.5 billion worth of financing and assisted a total of 1,617 customers. For this year, they are targeting to approve financing worth RM252 million to Sabah Region’s SME entrepreneurs.

Based on the economic landscape of Tawau and its surrounding areas, Radzif said SME Bank is offering several financing options that will benefit SME entrepreneurs, among them include the Working Capital Guarantee Scheme (WCGS) which offers working capital financing up to RM5 million with zero collateral and i-Enterprise Premise Financing (i-EPF) providing up to 150 per cent financing of the market value and the term period could be stretched up to 30 years.

As alternatives, SME entrepreneurs could opt for ‘Tabung Industri Kecil (TIKS)’ financing while Bumiputra SME entrepreneurs could consider taking up the ‘Tabung Usahawan Baru 2 (TUB2)’ to meet their financing needs. TIKS and TUB2 offer financing up to RM5 million with the financing rate ranging from four per cent to six per cent per annum.

“Since its inception in 2005 until June 2016, SME Bank has approved RM24.6 billion worth of financing to more than 14,495 customers. The bank’s Upward Migration program has successfully upgraded more than 630 SME businesses to a higher level.

“Meanwhile, Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR), a wholly-owned subsidiary of SME Bank, has successfully coached more than 28,818 participants in various SME development program,” said Radzif.

According to him, SME Bank’s commitment in assisting SMEs to grow and remain competitive have been recognized internationally by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in Apia, Samoa on May 2, when it received the awards for Outstanding Development Project for the Graduate Entrepreneur Fund (TUS) and Best Sustainability Report 2014.

Radzif, also received the Outstanding CEO Award 2016 from ADFIAP.

Mara sasar lahirkan dua juta usahawan dalam 50 tahun

news001 bigKUALA LUMPUR 18 Julai – Majlis Amanah Rakyat (Mara) me­nyasarkan seramai dua juta usahawan dapat dilahirkan dalam tempoh 50 tahun akan datang.

Menteri Kemajuan Luar Bandar dan Wilayah, Datuk Seri Ismail Sabri Yaakob berkata, sasaran tersebut diyakini boleh dicapai memandangkan agensi berkenaan telah pun melahirkan seramai satu juta usahawan sejak penubuhannya pada tahun 1966.

Menurut beliau, Mara turut memperuntukkan sebanyak RM1 bilion pada setiap tahun untuk membantu para usahawan dari segi pembiayaan dana pinjaman, bimbingan latihan dan aktiviti-aktiviti keusahawanan berkaitan. 
“Mara mempunyai pelbagai program untuk menggalakkan rakyat di negara ini menceburi bidang perniagaan keusahawanan dan ia berterusan sehingga ke hari ini.
“Bersesuaian dengan sambutan ulang tahun ke-50 Mara tahun ini kita meletakkan sasaran untuk menggandakan angka tersebut kepada dua juta usahawan menjelang tahun 2066,” katanya.

Beliau berkata demikian dalam sidang akhbar selepas merasmikan bangunan baharu Universiti Kuala Lumpur (UniKL) Business School dan Sambutan Hari Raya Mara 2016 di sini hari ini.

Yang turut hadir timbalannya, Datuk Ahmad Jazlan Yaakob; Pengerusi Mara, Tan Sri Annuar Musa; Ketua Pengarah Mara, Datuk Ibrahim Ahmad dan Pengerusi UniKL, Datuk Dr. Adham Baba.

Dalam pada itu, Ismail Sabri berkata, UniKL turut meletakkan sasaran 20 peratus daripada 26,000 pelajarnya untuk terlibat dalam keusahawanan.

Katanya, sasaran itu berjaya apabila seramai 800 hingga 1,000 graduan universiti itu menjadi usahawan pada setiap tahun.

Ismail Sabri memberitahu, UniKL telah merangka pelbagai inisiatif bagi membangunkan usahawan-usahawan muda seperti program Genesis yang merupakan program Tekno Usahawan bagi melahirkan 1,000 usahawan dengan menggalakkan mereka membangunkan pelan perniagaan sendiri di akhir semester pengajian sekali gus akan dianugerahkan Skim Perniagaan Mara bernilai RM50,000 jika layak.

“UniKL Business School juga menjalinkan kerjasama strategik antaranya dengan Perbadanan Usa­hawanan Nasional Berhad, SME Bank Bhd. (SME Bank), Pusat Pembangunan dan Penyelidikan Usahawan (Cedar) dan Pusat Inovasi dan Kreativiti Global Malaysia (MaGIC) untuk memberi khidmat nasihat dan latihan keusahawanan.

“Untuk terus menyokong usahawan-usahawan muda ini setelah tamat pengajian nanti, UniKL Business School melalui Teknoputra akan terus memantau siswazah yang menceburkan diri dalam bidang keusahawanan dengan memberikan bantuan, sokongan serta latihan berterusan­ supaya usahawan-usahawan ini akan terus berkembang dan berjaya,” katanya.

Published in Utusan Malaysia, 19 July 2016
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