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The Successful key to do BUSINESS in Cambodia. Cambodian Mekong University. The success factors of Cambodian small and medium-sized enterprises (SMEs). Mr. Yorn Malimchheng Bronze Mendel of Mckinsey Mekong Business Plan Challenge 2 01 2. Contents. Business Factors Bank Financing - PowerPoint PPT Presentation
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The Successful key to do BUSINESS in Cambodia
Cambodian Mekong University
The success factors
of Cambodian small
and medium-sized
enterprises (SMEs)
Mr. Yorn MalimchhengBronze Mendel of Mckinsey Mekong Business Plan Challenge 2012
9/4/2012 1YORN malimchheng
Contents
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy Political
stability Government assistance
9/4/2012 2YORN malimchheng
Definition of SME in Cambodia
• SME (small and medium enterprises) are defined based – small firm
• Employee between 11-50• Fixed asset from $50,000 up to $250,000
– Medium firms • Employees range from 51 to 100 • Fixed asset from $250,000 to $500,000.
Source: SME Secretariat for SME Sub-committee in 2005, Ministry of Industry, Mines and Energy (MIME) Cambodia
9/4/2012 3YORN malimchheng
Definitions of SMEs in Asia countries
Country Definition
Japan Less than 300 employees or less than 100 million yen in legal capital
Singapore Greater than 30% in local equity and less than S$12 million in fixed assets
Korea Less than 300 employees
Taiwan Less than NT$40 million in paid capital and less than NT$120 in total assets
Malaysia Less than MR2.5 million in shareholder’s fund
Thailand Less than 200 employees and 100 million bath in investment capital
Philippines Less than 200 employees and 40 million peso in total assets
Vietnam Less than 500 employees or less than VND10 billion in total assets
Cambodia Less than 100 employees or less than US$ 500,000 in total assets
Source: The APEC survey on small and medium enterprises 1994, APEC Committee on Trade and Investment, Ministry of
Economic Affairs, Chinese Taipei (Note: the data from Japan to Vietnam countries
only)9/4/2012 4YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 5YORN malimchheng
Personal Factors
• Gender– John B. Miner (1996) found that “Most women
currently about 90% start service business, not manufacturing operations. Their firms are mainly concentrated in sales, consulting, design and architecture, public relations and advertising and personnel, business services.
9/4/2012 6YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 7YORN malimchheng
Personal Factors
• Age of Owner – Entrepreneurs vary in age from young to old. – Older business owners were more likely to
continue to operate a business instead of returning to be an employee of another's Company.
– Current owners of businesses had been in their fields for a number of years and had brought with them years of experience.
9/4/2012 8YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 9YORN malimchheng
Personal Factors
• Education Level
9/4/2012 10YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 11YORN malimchheng
Personal Factors
• Total Hours Worked – The more you put into it, the more you'll get in
return – It seems logical that the more hours that are
invested in a business, the more work that gets done, and the greater the payoff.
9/4/2012 12YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 13YORN malimchheng
Personal Factors
• Previous Work Experience – The prior and current working experience; the
size of the previous employers and the types of boss he/she has previously worked for do contribute significant influence to the success of an entrepreneur.
9/4/2012 14YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 15YORN malimchheng
Personal Factors
• Business Dependency – The decision to start up a business is difficult
for many individuals. It takes a great deal of focus and dedication on behalf of the entrepreneur to make the leap from fantasy to reality.
9/4/2012 16YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 17YORN malimchheng
Personal Factors
• Personal Funding
9/4/2012 18YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 19YORN malimchheng
Business Factors
• Financing (Bank, Personal, and Other)– Financing is imperative for any business
starting up. Entrepreneurs need capital resources and cash flow when beginning operations. This gives them the flexibility and ability to operate their newly-formed businesses without restrictions.
9/4/2012 20YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 21YORN malimchheng
Business Factors
• Technology – Technology has become an integral part of the
daily operations of many businesses today.
9/4/2012 22YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 23YORN malimchheng
Business Factors
• Business Planning – A business often begins with an idea that is
acted upon. However, to get from the idea stage to the actual business start-up generally involves considerable planning. n many cases, the amount of actual planning done is dependent on the willingness of the entrepreneur to do it.
9/4/2012 24YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 25YORN malimchheng
Business Factors
• Age of Business – Businesses tend to go through cycles of growth
and as they grow and develop, the size of their businesses will generally increase, as will their sales.
– With more years of operation, the learning curve for businesses is reduced and they develop core competencies in specific areas.
9/4/2012 26YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 27YORN malimchheng
Business Factors
• Business Structure– Sole Proprietor– Partnership – Corporation
9/4/2012 28YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 29YORN malimchheng
Business Factors
• Operating Location – Several businesses are starting up their
operations as home-based businesse
9/4/2012 30YORN malimchheng
SMEs Success
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 31YORN malimchheng
Business Factors
• Number of Full-time Employees – Businesses are generally successful in many
ways because of the contribution of the owner and the staff growing and developing the business.
– Each member of the organization brings valuable skills and abilities to the whole group.
9/4/2012 32YORN malimchheng
Contents
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 33YORN malimchheng
Supportive Environment
• Open Economic Policy of the Government
9/4/2012 34YORN malimchheng
Contents
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 35YORN malimchheng
Supportive Environment
• Political Stability and Peaceful Environment in the Country – For entrepreneurship to flourish, a country
must have a political system that promotes an entrepreneurial environment.
9/4/2012 36YORN malimchheng
Contents
Business Factors
• Bank Financing• Other Financing• Use of Technology• Use of Business Plan• Age of Business • Business Structure• Operating Location• Number of Employees
Personal Factors Gender Education Business
Dependency Age of Owner Total Hours
Worked Work Experience Personal
Funding
SMEs Success (Sales Performance)
Supportive Environment Open economic policy
Political stability Government assistance
9/4/2012 37YORN malimchheng
Supportive Environment
• Government Assistance – The government assistance such as tax
incentives, infrastructure facilities and industrial zones, and loan facilities through state banks particularly for small and medium-scale industries contributes to the development of manufacturing enterprises in the country.
9/4/2012 38YORN malimchheng
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9/4/2012 40YORN malimchheng
9/4/2012 41YORN malimchheng
Thank You
Mr. Yorn MalimchhengTel: 093 806 807/ 087 808 807E-mail: [email protected]: y_malimchhengWebblog: www.limchheng.wordpress.com
9/4/2012 42YORN malimchheng
