SME ADVISOR issue 115 by SME Advisor Middle East

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Khalifa Fund for Enterprise Development is a government entity that spearheads the support and development of SMEs in the UAE. His role is integral to the strategic planning and management of the organisation in alignment with the Executive Council’s objectives.

EDITORIAL COMMITTEE

His Excellency Abdullah Saeed Al Darmaki CEO, Khalifa Fund for Enterprise Development

SME Advisor is delighted to announce that during 2015 we will be working with some of the leading names in the SME space - key figures who have kindly agreed to take part in our prestigious Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever - analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Policy makers

Professor Val Lindsay MSc (Otago), MBA (Victoria), PhD (Warwick) As a Professor in Strategy and International Business, and Dean of the Faculty of Business at the University of Wollongong in Dubai (UOWD), she has a keen interest in teaching and research in the areas of international strategy, exporting, services internationalization, entrepreneurship, small and medium-sized enterprises, networks and clusters, and economic development.

Thought leaders At the helm of the BPG Group since 1991, he is responsible for consolidating the Group’s interests across advertising, public advocacy, public relations, design, activation, media asset management and digital verticals, in the Middle East and North Africa region.

Entrepreneurs Avi Bhojani CEO, BPG GROUP

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sme advisor ISSUE 114

He is also the Director of the Dubai Chamber initiative, Tejar Dubai. He is a proven UAE leader and business entrepreneur, with the ability to rapidly mobilize teams to achieve organisational change and integration.

With his unique background as an educator, a business strategist, and a researcher, Dr. Abonamah has conducted many strategy and organisational transformation workshops for various SMEs in the Gulf region and has been invited to speak at many national and international conferences, and panel discussions. He has over fifty publications in international journals and conferences and a US patent in reliable computer systems.

Essa Al Zaabi Senior Vice President Support Services, Dubai Chamber of Commerce & Industry

Abdullah Abonamah PROFESSOR OF MANAGEMENT SCIENCES AND CEO, UAE ACADEMY

He is a Board Member of the Advisory Board of Deutsche Auskunftei Service GmbH, Chairman of Business Advisory Council of EFMA, member of ECGI (European Corporate Governance Institute) and Member of the Advisory Board of BAA, the Alumni Association of Bocconi University and SDABocconi.

Roberto Mancone MD, GLOBAL HEAD BUSINESS PRODUCTS, LENDING, DEPOSIT AND PAYMENTS, DEUTSCHE BANK

Paul Kenny PARTNER, EMERGE VENTURES

Laura has been named one of the Best Keynote Speakers by Meetings and Conventions Magazine and is a member of the National Speakers Association. She serves on the boards of the American Heart Association, Clean the World Foundation, Common Threads and Event Solutions Magazine.

Laura Schwartz PROFESSIONAL SPEAKER, AUTHOR AND FORMERLY WHITE HOUSE DIRECTOR OF EVENTS

Paul is one of the most important figures in the Internet space in the MENA region and is an active investor, mentor and advisor to numerous companies around the world. He has made numerous investments into Internet and Technology companies worldwide and sits as an advisor and board member to several companies.

Yogesh Mehta Managing Director, Petrochem Middle East Mohan Valrani Senior Vice Chairman & Managing Director, Al Shirawi Group of Companies Apart, from his business-related ventures, he is also deeply involved in social activities. He is the founder - Chairman of the India Club and on the Board of Trustees of The Indian High School and has been as instrumental in contributing to the success of these institutions.

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Driven by passion and a need to succeed, he established Petrochem Middle East in 1995 with friend and business partner David Lubbock. Petrochem Middle East has since grown from strength-to-strength to become one of the largest independent petrochemical distributors in the Middle East. A self-made billionaire, his greatest attributes are mentoring and leading by example.

Sultan Sobhi Batterjee owner and CEO, IHCC He is a member of several social and economic associations including the Young Arab Leaders Society in Dubai, the young entrepreneurs committee Jeddah Chamber of Commerce and he is also a Board Member of the (EO) Entrepreneursâ&#x20AC;&#x2122; Organisation in the USA.

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FROM THE EDITOR MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara COO - Business and Consumer EDITORIAL Group Director of Editorial Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 ADVERTISING Business Development Executive Adam Barrie Lees adam.lees@cpimediagroup.com +971 4 440 9119 Business Development Executive Mohamed Kerrouchi mohamed.kerrouchi@cpimediagroup.com +971 4 440 9162 Account Executive Freshia Mistry freshia.mistry@cpimediagroup.com +971 4 440 9161 Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120 DESIGN Head of Design Glenn Roxas

#RETHINKSUCCESS – remember this phrase… The hashtag ‘rethink success’ is the theme of the 2015 edition of SME Beyond Borders, taking place on November 2nd. The idea of this hashtag is that the goalposts and the opportunities for entrepreneurial success have never been more in a state of flux – and nor has the way that individuals define success. For many of today’s entrepreneurs, success means a good deal more than simply the traditional idea of continued acquisition: we see technology enabling businesses to have powerful outreach into the community, helping the disenfranchised, creating radical new crowdfunding platforms or providing consumers with the means to choose the credit card or finance plan that’s right for them. It can still be about making millions - but this time it’s about using algorithms and analytics to empower and link half a million people and create commercial conduits undreamed-of a decade ago. Not to mention the most important fact of all: in the era of ‘rethink success’, what does the individual inside the entrepreneur consider to be his or her greatest achievement? We mention all this now because in the weeks ahead, you’ll hear the phrase become a household name and we wanted to give you a powerful insight into the thought process underlying the nation’s biggest SME event. It’s going to be an occasion when we look up-close at the new generation of highly successful entrepreneur and give our regular readers and delegates a very colourful tapestry of ideas about potential ways forward. Will these new ways of working empower or constrain your business? Are you using a business model that can grow and prosper in the new climate, or will it be swept away by the changes? Are you availing yourselves of the leverage that the new disruptive technology offers, or pretending (and hoping) that it will all go away? The moral of the story is that the breadth of opportunities for entrepreneurs has never been wider and more potentially exciting. From the traditional roles of trade and re-export through to professional services and IT/telecoms, and now to the new era of community entrepreneur and online facilitator, this is truly the age of the SME. The point is, it’s what constitutes success that is more fluid and indefinable than ever – the skill of the entrepreneur to make the moment, seize the opportunity and lead from the front is as essential as ever. How will you Rethink Success? Enjoy this issue of SME Advisor.

Senior Graphic Designer Froilan Cosgafa IV

Paul Godfrey Senior Editor

Graphic Designer John Magno Production Manager James Tharian

Rushika Bhatia Editor

Data Manager Rajeesh Melath Printed by Al Ghurair Printing & Publishing LLC

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Head Office PO Box 13700, Dubai, UAE Tel: +971 (0) 4 440 9100 Fax: +971 (0) 4 447 2409 © Copyright 2015 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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Contents

“I think the internet is a great tool for this region. I believe this space is hungry for entrepreneurs to innovate”

p36

ON THE FRONT COVER

06 Editorial Committee SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events. 09 Editor’s Note Paul Godfrey gives a sneak peek into the exciting engagements lined up for SMEs in the region. 12 Data and decision making Our infographic section showcasing key trends shaping the SME marketplace. Ground level 14 Avoiding reputational risk We look at one of the most rapidly-growing areas of risk management… 18 Bridging the gap – Financial literacy and your business Why it is important and how you can get there… 22 There’s a price for everything SME Advisor explores the science of effective purchasing and acquisition – better known as procurement.

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Our experience has been fairly seamless – we have been warmly welcomed by the consumers and the policy makers across most markets that we have made an entry into.

p40

“We need to properly accelerate the growth of the SME market in Oman in terms of the real wealth it creates and that will require a robust pipeline of STEM educated workforce who will fulfil the demands of innovation, job creation and a sustainable economy” p46

Business Banking 28 The Road to Growth Is franchising the right strategy for your business ambition? Digitally Disruptive 32 Hello Opportunity Etisalat presents a faster and more convenient way for SMBs to meet their communication needs. Movers & Shakers 36 An exclusive interview with Ronaldo Mouchawar SME Advisor had the honour to meet one of this region’s most successful entrepreneur. 40 A radically different road Mudassir Sheikha and how he started Careem. Entrepreneurship 48 Reshaping the future – How innovative education is paving the way for entrepreneurship Shatha Maskiry, MD, Protivti Oman, offers sound advice…

Legal 54 The GCC Railway Network Experts from Clyde & Co. provide critical insights. Finance 58 Getting the best out of Salesforce CRM: A guide for SMEs Patrick Crosbie sets the scene… Finance 62 Malta – Gateway to opportunities A detailed profile of the Mediterranean nation that has become a world-class hub for entrepreneurism, trade and business development SME Beyond Borders 74 Unveiling the biggest SME occasion of the year. Tech Trends 76 Top insurance apps for your business.

Data and Decision making

CHALLENGES FACING THE SECTOR • Lower oil prices • Ineffective risk management • Poor productivity • Lack of scenario planning • Sustainable urbanisation

OPPORTUNITIES FOR SMEs

94%

80%

of companies are looking for new business leads

are constantly on the lookout for new construction partners

Top factors construction firms consider when selecting a business partner: 1 2 3 4 5

Previous experience Qualifications Team size Past experience Product range

REGIONAL SECTOR OVERVIEW

47%

GCC construction sector contribution to GDP in 2014

approx.

$194bn

The total value of construction contracts in 2015 within the Gulf region

Sources: Alpen Capital, Global Construction 2025 by PwC, Global Construction Perspectives and Oxford Economics, ProTenders: 2015 Global Construction Survey Report and Deloitte GCC Powers of Construction 2015.

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Data and Decision making

CONSTRUCTION INDUSTRY

TOP TRENDS

GLOBAL OUTLOOK The volume of construction output worldwide will reach $15 trillion by 2025 52% of all construction activity takes place in emerging markets and this will increase to 63% by 2025 Construction market in Western Europe will be almost 5% smaller by 2025 than 2007 China is expected to increase its global share from 18% today to 26% in 2025 Indonesia, Vietnam and the Philippines represent a $350 billion construction market growing at more than 6% annually India will overtake Japan as the 3rd largest construction market with annual growth averaging 7.4% annually in construction, expected to exceed that of China

TENDERS IN THE UAE

40%

issue more than 20 tenders per annum

REGIONAL SECTOR OVERVIEW Overall construction industry compound annual growth rate (CAGR) of 11.3%, reaching from $91.5bn in 2013 to $126.2bn in 2016

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Real estate and transportation projects constituted 74% of total project value in top 100 projects across the GCC region

85.7%

use e-mail as the primary method of distributing tenders

90%

are looking to move to an automated system to manage tenders

Choice of automation system would largely depend on its:

50%

30%

10%

Ease of use

Security

Price

GROUND LEVEL

Avoiding reputational risk With the rise of the internet and social media, reputational risk has grown from being a relatively rare issue to a reality of day to day business life. It impacts not only how customers, prospects and potential staff see your company, but your ability to get credit, finance and valuable supplier agreements. Senior Editor Paul Godfrey looks behind perceptions…

In today’s commercial climate, more and more businesses are crucially aware of the key role played by proactive risk management - and one of the most rapidly-growing areas of this important discipline is reputation management. This is the influencing and/or control of an individual’s or business’s reputation, to ensure that the perception by public and the world at large is as favourable as possible. Only a few years ago, reputation management was a term used largely by public relations professionals; but now, the growth of the internet and the increasingly widespread use of social media mean that every set of search results can have worrying implications for a business’ image in the market. The need to control every

aspect of company messaging - let alone actual performance and ethical conduct in the market - has never been more acute. Getting the right messaging online: how is your business seen? Today, reputation management is increasingly about monitoring the reputation of an individual or brand on the internet, tackling or negating content which is potentially damaging to it, and using customer feedback solutions to detect the vital early warning signals to reputation problems. In this way, effective reputation management seeks to bridge the gap between how a company perceives itself and how others view it. So evolved has this issue become

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GROUND LEVEL

the growth of the internet and the increasingly widespread use of social media mean that every set of search results can have worrying implications for a businessâ&#x20AC;&#x2122; image in the market.

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GROUND LEVEL

In reality, there is no agreement within the industry on where to draw the line on issues of disclosure, astroturfing, and censorship.

that the world’s leading online portals will often allow detailed analysis of brand feedback through their own analytics programmes. Examples include the feedback systems on eBay and Wikipedia, while Google search results are the primary target of reputation management initiatives. Some of the key online reputation management strategies are • Enhancing the tagging and search engine optimisation across all company online materials, such as white papers and customer testimonials in order to downgrade negative content. • Publishing a raft of positive content and social media profiles, in order to outperform negative results in a search. • Submitting highly positive press releases to authoritative websites so as to promote brand positioning and suppress negative content. • Getting mentions of the business or individual in third-party sites ranking highly in Google. • Using denial-of-service attacks to force sites with damaging content off the web. • Conducting so-called ‘astroturfing’ of third-party websites by creating anonymous accounts that create positive reviews. • Proactively offering free products to prominent reviewers. • Effectively (and loudly!) responding to public criticism stemming from recent changes. Reputation at the cost of ethics? Strategies like those above – and the practice of reputation management generally - raises a number of ethical considerations. In reality, there is no agreement within the industry on where to draw the line on issues of disclosure, astroturfing, and censorship. It’s not unknown for businesses - especially aspirational

SMEs - to hire staff to pose as bloggers on third party sites without disclosing they were paid to do so. Practices of this kind led to the creation of the Online Reputation Management Association, which promotes ethical best practices through a detailed and comprehensive certification programme. In line with initiatives of this kind, in 2011 Google introduced a toolset for users to monitor their online identity and request removal of unwanted content. As the industry has developed, the use of automation by some of the major review sites has seen a number of court cases dismissed, largely because they have demonstrated that it is algorithms not human bias - that are effectively managing reviews and the incidence of placement and company referencing. Combatting the negatives - and preventing ‘bandit’ messaging One of the greatest challenges of the social media era is that members of the public are at liberty to say whatever they like about your business online - and it is there for all the world to see. There are several key protocols for dealing with these scenarios, e.g. • Address the points raised headon - don’t ignore them and hope they will go away. If this is in a social media context, try to engage the sender in a rational and constructive dialogue - honestly dealing with their concerns and expressing regret that your company should ever give rise to this situation. • Be proactive. Review the raft of social media platforms every day and identify the posts that need to be dealt with. Never give others the chance to join in - a negative that turns ‘viral’ can seriously jeopardise the company’s future markets and turnover. • Counteract by issuing positive statements - third party endorsements are preferable, as

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GROUND LEVEL

Modulating the message flow can be challenging, but in the case of SMEs, there is likely to be far less overt communication online than with a large corporation dealing with thousands of customers.

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are good solid case studies. Ensure that these are as close as possible in theme to the concerns raised by the critical posts. Another worrying trend of social media is that there have been cases whereby staff actually agree with the critical posts and take it upon themselves to enter into ‘bandit’ conversations. Needless to say, these rogue postings can have alarming consequences for the brand - but the reality is that they emanate from businesses where there is no central control of messaging and where staff are seriously disaffected as a result of the lack of any positive dialogue with management. It’s particularly worrying to note that there have been instances of the rogue messaging being left uncontrolled for more than nine months - again a sure sign that there are serious and critical issues of personnel management. To prevent bandit messaging, the following steps must be taken as absolute priorities – • One person - or a mini team need to be given sole, dedicated responsibility for all social media postings. No-one else is allowed to do this. • Proper training is given to the social media personnel so that all messaging can be dealt with in the most positive and constructive ways. • All posting are reviewed on a daily basis by an authorised manager. • There needs to be a ‘cut-off’ point whereby specially severe criticisms of the company as posted by the public are automatically referred to senior management for tailored guidance on best response. • Staff dealing with social media postings need to be fully conversant with the full product range of the business and the company’s key USPs. • Social media staff need to liaise with the appointed PR company to check assiduously if any negative messaging has been picked up on

by the media or other opinionmakers. Reputation matters! The reality is that in a commercial setting, reputation matters, and in a world where online culture is all-pervasive, great harm can potentially be done in an instant. Modulating the message flow can be challenging, but in the case of SMEs, there is likely to be far less overt communication online than with a large corporation dealing with thousands of customers. It’s still possible to manage the messaging in a productive and constructive way, ensuring that reputational risk is managed successfully as an integral part of the larger risk management portfolio.

For an online version, please visit: http://www.smeadvisor.com/news/ avoiding-reputational-risk

GROUND LEVEL

Bridging the gap

â&#x20AC;&#x201C; Financial literacy and your business

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GROUND LEVEL

For any SME to be successful, incorporating a culture of financial literacy is an absolute must, opines Hanady Khalife, Director of Operations, Middle East and Africa, Institute of Management Accountants (IMAÂŽ)â&#x20AC;Ś

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GROUND LEVEL

financial knowledge is what sets apart those who turn their venture into a successful and enduring company, from those who are forced to close shop in less than two years.

Alarming statistic!

Running a small business requires a wide range of skills and knowledge – in addition to specific industry know-how, business owners need a sound understanding of production, operations, human resources, marketing and information management. The reality, however, is that ultimately it is the financial knowledge and the ability to make sound business decisions that can determine the success or the failure of any company. And yet, the numerous research and surveys conducted in recent years, all point to an alarming fact: most business owners, by their own admission, lack the basic financial knowledge essential to running a company. Consequently, nearly 20 per cent of small businesses and start-ups don’t survive past their first year, and, furthermore, a shocking 50 per cent of them don’t get through the second year. When asked about their key learnings and what they would have done differently, had they had a do-over, all small business owners and entrepreneurs have a somewhat similar response: they wish they had a better grasp of the financials of their business. Evidently, financial knowledge is what sets apart those who turn their venture into a successful and enduring company, from those who are forced to close shop in less than

two years. Trial balances, P&Ls, debits and credits, cash flow, payroll that’s more breadth of financial knowledge than any small business owner can be equipped with when starting a company. Plus, let’s face it: it’s okay to not know or even like accounting. After all, this is not the reason anyone got into business in the first place. But, identifying a challenge is the first step to addressing it. Voices of the SME community, such as this very magazine, have long drawn attention to financial education as a key factor in the survival and longterm success of small businesses. Financial literacy: taking the first steps All business owners must be able to understand basic finances. In its most simplistic function, this is about how money works: how a business makes and spends money, and how this dynamic impacts on its profitability. From an introduction to basic accounting practices, and the tools that can enable business owners to make sound day-to-day financial decisions, to managing tasks such as payroll and accounts payable, our experts will cover all the financial fundamentals. It is also extremely significant to instill fiscal discipline amongst

Building financial literacy: Four critical steps

1 20

Hire a certified accountant for your business and ensure that you keep aside a certain number of hours every week to sit down and go over your financials.

Make a conscious effort to separate your personal spending from your business spending as this will give you a clearer picture of where your business stands.

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GROUND LEVEL

businesses of any size, and that means compliance and due diligence. If a company wishes to be eligible for a bank loan, look for investors, or sell any stake of the business at some point, the financial records are the very first thing everyone will ask to see. That means book keeping and financial auditing: the task most small business owners simply shudder at the very thought of dealing with! In truth, it may sound a lot more difficult than it is. There are a few ways for a small company to go about it:

But financial literacy goes beyond balance sheets and audits. Small business owners need financial knowledge to pursue those business

opportunities that would be most advantageous to them. And to do that, they need to speak the same language as banks, investors and VCs, and any other relevant financial institutions and parties. The ability of a business owner looking for capital to prepare a robust financial plan, and speak with competence and confidence about the financial projections of the business is also critically important. At IMA, we would like to join the SME community and lend the expertise of our CMA certified financial professionals in order to help advance financial literacy. Ultimately, via regular contributions from our accredited financial professionals, we aim to make a wide range of information, knowledge and advice available to small businesses, and help them navigate the complexities and challenges of running a business, in order to survive the two year mark and thrive for many more years to come. We’re also open to exploring opportunities to inject practical finance knowledge amongst the ranks of entrepreneurs and small business owners in the UAE, from an early stage. Overall, our goal is to empower small business owners with the critical financial information they need.

(1) Keep a record on its own, using just a plain excel sheet; it’s old school but it gets the job done. (2) Use accounting apps. There are quite a few options available – FreshBooks, Nutcache, KashFlow, etc.; they’re friendly to use, packed with features and time saving, but more on this in our upcoming articles. (3) Get help from an accredited accountant, and get audited once a year by a certified party. Whichever option a company chooses, it must ensure transparency in its operations.

Encourage employees to participate in financial training programmes to better understand the intricacies of financial management and cost control. Remember that making any business financially strong requires team effort and the equal involvement of all stakeholders.

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Small business owners need financial knowledge to pursue those business opportunities that would be most advantageous to them.

For an online version, please visit: http://www.smeadvisor.com/news/ bridging-the-gap

Educate yourself on the basics of financial management including best practices, tools available to small businesses, the risk factor, the role of financial software, and so on.

GROUND LEVEL

Thereâ&#x20AC;&#x2122;s a price for everythinG... For all businesses, the actual profitability of the company depends not only on the margin made on goods produced or services sold, but on the ability to reduce all costs and outgoings to the maximum extent, while maintaining the agreed raft of quality and service commitments. The science of effective purchasing and acquisition is known as Procurement, and it involves aligning a series of procedures which in themselves are second nature to the majority of SMEs. But can you make the transition to a structured approach? Senior Editor Paul Godfrey investigatesâ&#x20AC;Ś

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GROUND LEVEL

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GROUND LEVEL

Would you currently know the procurement life cycles that your business is working to? This data is fundamental to the balance sheet, since it’s very likely that you will be carrying excessive amounts of stock, tying up finances unnecessarily.

Procurement is not just the process of buying goods, services or works from an external source, but the insistence that they are bought at the best possible cost to meet the business’ needs in terms of quality, quantity, and time. Importantly, procurement also lets you set a ‘competitive standard’ for those businesses who want to deal with you, thereby promoting fair and open competition – as well as reducing any inference that you are ever showing favouritism to one supplier over another. At the heart of effective procurement is the understanding that the usual processes of buying goods and items at random or on an ad hoc basis from the same supplier will involve significant wastage. Staff are tied up on repetitive tasks, prices are not contested and there is no centralised review of the scales and timings of the purchase. A proper process of procurement will review • The cost of each item and the savings accrued from bulk purchase • Costs tied up in staff time spent re-ordering countless items • The appropriacy of each item in terms of quality and fitness to task • Company consumption rates across various product lines • The range of potential suppliers in the market and what they can each offer - intrinsic advantages/ disadvantages The role of ‘e-procurement’ Clearly, the tasks above may well be far beyond the job description (and time available) of the staff normally charged with stock re-ordering. Add to this the fact that purchasing decisions will often include factors such as delivery costs/timings, and price fluctuations and you have a complex scenario that you may not be able to cope with manually. This extra level of complexity has led to the development of many types of branded procurement software, which allows users to quickly and

cost-effectively re-order stock according to agreed price-points and timings built into the procurement programme. This is often designed to make the entire end-to-end process as user-friendly as possible and will often feature on-screen photographs of each item so users know exactly what is being bought. With software of this kind - often known as ‘e-procurement’ - quantities and re-ordering timings will have been worked out in advance, according to a detailed profit-and-less assessment. It is estimated that there are currently more than one hundred e-Procurement solutions available. There is no doubt that as an important element of supply chain management systems, these systems help organisations efficiently manage their purchasing cycle times and maximise profit on every purchase order. The procurement life cycle Would you currently know the procurement life cycles that your business is working to? This data is fundamental to the balance sheet, since it’s very likely that you will be carrying excessive amounts of stock, tying up finances unnecessarily. This is likely to result from a concern that if the business runs out of stock, there won’t be time to re-order a classic example of the need to centralise around a trusted and costeffective e-procurement platform. To put in place a viable and manageable procurement life cycle, you will generally follow seven steps, i.e. – • Identification of Need: This is an internal process which involves understanding the company’s needs and establishes a short term strategy (three to five years). • Supplier Identification: Once the company has answered important questions like, e.g., make or buy, multiple vs. single suppliers, then it needs to identify who can provide the required product/

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GROUND LEVEL

Figures show that the average procurement department achieved an annual savings of 6.7 per cent in the last reporting cycle and sourced 52.6 per cent of its addressable spend.

Did you know?

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service (P/S). There are, of course, many sources on which to search for suppliers, including a multiplicity of websites and trade shows. • Supplier Communication: When one or more suitable suppliers have been identified, requests for quotation, requests for proposals, requests for information or requests for tender may be advertised, or direct contact may be made with the suppliers. References for product/service quality are consulted, and any requirements for follow-up services including installation, maintenance, and warranty are investigated. Samples of the P/S being considered may be examined, or trials undertaken. • Negotiation: Negotiations are undertaken, and price, availability, and customisation possibilities are established. Delivery schedules are negotiated, and a contract provisionally agreed. • Supplier Liaison: During this phase, the company evaluates the performance of the P/S and any accompanying service support. You can create a supplier scorecard for this purpose. When the P/S has been consumed, is about to be re-ordered, or the contract expires, the company’s experience with the P/S is reviewed. If the P/S is to be reordered, the company determines whether to consider other suppliers or to continue with the same supplier. • Logistics Management: Supplier preparation, shipment, delivery, and payment for the P/S are completed, based on contract terms. Installation and training may also be included. • Tender Notification: Some institutions choose to use a notification service in order to raise the competition for the chosen opportunity. These systems can either be direct from their e-tendering software, or as a

re-packaged notification from an external notification company. Procurement performance Research undertaken by the Boston Consulting Group shows that once a business starts to commit to a serious procurement initiative, it rapidly becomes a key source of P&L data and a basic methodology for many parts of the company’s operation. These findings show that an average procurement team manages nearly 61 per cent of total enterprise spend. This measure - which is commonly called ‘spend under management’ -refers to the percentage of total enterprise spend (which includes all direct, indirect, and services spend) that a procurement department manages or influences. Figures show that the average procurement department also achieved an annual savings of 6.7 per cent in the last reporting cycle and sourced 52.6 per cent of its addressable spend. By the same token, an SME can reap benefits from a structured procurement initiative without it becoming a major commitment or needing special staffing. Procurement is simply a powerful tool for minimising waste - and ensuring that your business gets what it wants, when it wants it, at the price it needs to pay.

For an online version, please visit: http://www.smeadvisor.com/news/there’s-aprice-for-everything

fast four

“Value Added Tax or VAT is a popular fiscal tool for a range of reasons. It is considered to be efficient, cheaper to operate, less open to fraud, and less likely to distort investment decisions by businesses than any form of direct tax. This latter point is significant; governments do not want to generate new revenue at the expense of investment by the private sector. Bearing in mind that the majority of the cost of a VAT falls squarely on the consumer rather than on businesses, it is a rather neat way of balancing these potentially competing requirements.” Source: Deloitte’s VAT in the GCC

We present to you a compelling new section that explores five different, practical views on one topical SME issue. This month SME Advisor scoured through multiple sources of information and found five excerpts that summarise everything you need to know about VAT in the GCC…

“Currently, there is no timetable for VAT implementation across the region and no further information available regarding the progress of discussions and the overall content of the draft VAT agreement. Each GCC state is at a different level of readiness for the implementation of a VAT regime, with certain countries already in an advanced stage including the resourcing of specific VAT departments that are working on administrative arrangements for the introduction of VAT at a country level.” Source: EY as on 12/05/2015

What is VAT?

One topic Implemen tation of VAT

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fast four

Why is VAT important for the GCC?

four expert opinions How will it affect my SME?

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“The GCC governments have realised the risk involved in an almost complete dependence on oil and gas revenues given the recent extreme volatility of international oil prices. In addition, revising the taxation system reflects the need to complete the panoply of macroeconomic instruments of a modern economy. Given that the member states of the GCC are linked with a common market, it is not practical for any country to reform its own system in isolation. Therefore, the member states are recently negotiating elements of a new unified VAT system taking into account all economic and political consequences of such a system.” Source: Dubai Economic Council

Hot topic this month: VAT in the GCC

Although it is quite early in the day to assess the impact of the VAT law on SMEs, the reality is that it pays to be ready. Here are a few areas that your business will need to consider during the build-up to implementation: • Maintaining proper books of accounts in collaboration with a certified accountant. • Upgrading current technology and processes in line with the new regulations. • Revising payment terms and structures with suppliers in order to manage the added costs. • Understanding the overall VAT procedures and adding resources to your business to dedicatedly handle the process. • Reassessing pricing agreements with local and international partners.

BUSINESS BANKING

The road to growth

but is franchising the right strategy for your business ambition?

Turning your business into an international brand with coast-to-coast recognition is the dream of thousands of entrepreneurs and CEOs - and franchising seems to be a classic option for supercharged growth. Yet creating a franchise can be a rugged journey fraught with expenses and testing decisions. Franchising is not for everyone - but Senior Editor Paul Godfrey asks whether itâ&#x20AC;&#x2122;s right for you.

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BUSINESS BANKING

Franchising involves selling the rights to implement a core set of brand values and products (that you have created) to a third party. The third party does not own your brand values or products. However, he or she will replicate your brand identity to such an extent that from the perspective of the customer, the franchise-holder’s outlet is your business. It doesn’t take a master of business strategy to see that in this simple formula, a host of problems could occur. For example • How will you ensure that the franchise holder does indeed replicate your brand values and products accurately? • How will you implement visual brand guidelines to make the customer’s experience align with all his or her expectations around your brand? • How will you keep a check on the standards being implemented, which, if unsatisfactory, can easily defame your brand and do irreparable harm? • Do you currently have a way of systematizing and cataloguing your brand values and product offers so that they can be passed on in a manageable and comprehensive way? All of these factors have tried and tested remedies, but the ‘bottom line’ is that your business may not have the right resources, the level of development or skillsets to implement them. Moreover, consider these two statistics from the International Franchise Association – • About 30 per cent of would-be franchisors haven’t found a single buyer for their franchise model after two years of trying. • Each month, worldwide, about 35 major franchise operations go into bankruptcy. These are all mature businesses that at one stage or another showed every sign of solid success and grew to have more than 25 outlets. So, would you be smarter at surviving than them? The fact remains, though, that for the right company, franchising can be a powerful and proven route to dynamic growth. The difficulties tend to be most

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pronounced in the early stages of getting the franchise off the ground, and then at the more advanced level of taking the franchise into a new overseas market - but there can be considerable sums of money to be made for those with the right perseverance and patience. Remember too that right from the outset you will be asked to make decisions that can affect your business for years to come, and there will be some tricky legal issues - and a significant raft of paperwork - to navigate through. Here is our action guide to the key steps that you’ll need to take if you’re planning to become a new franchisor. Each of these will help you mitigate the risks and use precious resources in a wise and constructive way.

Is your business ready?

The first issue to tackle is the fact that not every business will suit a franchise model. There’s much more to this than whether you have a good track record of turnover and profitability. For example, you might be good at what you do, but do you actually have a strong USP that would roll out as the backbone of the franchise proposition? Is there something unique and memorable? It will pay to consider the following • The strength of your concept. Most successful franchises offer something that in essence is quite normal, but perhaps packaged in a memorable way, or with new elements that add a certain ‘twist’. Example - US pizza chain, Pizza Fusion, which offers pizzas with all-organic ingredients, while take-aways are delivered in hybrid electric cars. Remember too that the concept has to appeal both to consumers and to prospective franchisees. There should be an expectation that more units will create economies of scale and increase profits. Additionally, the 29

BUSINESS BANKING

Most successful franchises offer something that in essence is quite normal, but perhaps packaged in a memorable way, or with new elements that add a certain ‘twist’.

business needs to be something that can be rolled out remotely and systematically, not something that needs your own personal touch throughout (because you won’t be able to give it). • Realistically appraise your market position. How successful is your business, really? Most successful franchises take a business that’s already profitable and try to replicate that success in other locations. That doesn’t mean, though, that if you have one successful site you are automatically ready to franchise the business model. Statistics show that the core business needs to have at least two or more successful sites in order to generate the right levels of perceived credibility, or to understand what’s required in order to systematize and generate a stable franchise template. • Do proper market research. Too many would-be franchisors are basically acting on instinct or the assumption that their business model is replicable and portable. It will pay to commission some detailed and objective economic market research - don’t base your decision on anything else.

Define your business model

This is the ‘gritty’ stage where you need to make hard and fast decisions about the shape and finances of your business. The critical points to consider include: • Franchise fees and royalty percentages • The term of the franchise agreement • The size of territory to be awarded to each franchisee • What geographic area you are willing to offer franchises within • The type and length of training programme you will offer • Whether franchisees have to buy products from your company • The entry-level for business experience and net worth that 30

franchisees will need • How you plan to market the franchises • The management template: an owner-operator for each unit or a chain of master franchisees who will each develop multiple units? Decisions on this list can have a massive impact on the future of your business. For example, although the difference between a five per cent or six per cent royalty doesn’t sound like much, consider the ramifications five years down the line, when you have 100 franchises sold, and they each make US$700,000 per year. The difference is US$7 million annually! The reality is, you can easily make an error of judgement that’s probably compounded by the fact you’ve signed a 10-year contract…

Complete necessary paperwork – and register as a Franchisor

Once you’ve made the important decisions that shape how your franchise will operate, you’re ready to complete your legal paperwork. When you submit it, be prepared for the municipality or government agency to review the document and possibly demand additional disclosures before they approve your application. It’s a good idea to work at this stage with a specialist legal firm who are expert in completing and filing the right paperwork. This can save considerable time that might easily be lost resubmitting inaccurate documents or omitting necessary elements of the paper chain.

Start your recruitment drive

The shape of your business operation is about to change. As you prepare to become a franchisor, you will usually need to add several staff members who will focus solely on developing www.smeadvisor.com

BUSINESS BANKING

Now that you’re in business as a franchisor, one of your most pressing activities will be to find potential franchisees and convince them to buy your concept.

the franchise operation itself, including liaison with suppliers, developing the raft of collaterals and helping franchisees. Typically, you might need to recuit – • A trainer • A creative director • A marketing assistant • A franchise IT manager to adapt and implement franchise-wide company software and systems, On this recruitment drive, it’s important not to penny-pinch. You will be dealing with considerable financial values and you will most definitely need people who are used to this scale of operation, not out of their depth. This new team will be crucial in securing your wealth-to-be.

Green light - now sell franchises!

Now that you’re in business as a franchisor, one of your most pressing activities will be to find potential franchisees and convince them to buy your concept. Remember, selling franchises is intrinsically difficult because you are asking people to give you a good deal of money, leave their job, come to an untried business with no security or tangible benefits - and then do things your way! All of which means that you need a full-time team working on selling your franchise offer. In fact, that sales drive is almost a business in itself, and you will need high-quality salespeople who instill trust and totally understand the ‘leap of faith’ that you are asking potential franchisees to take. Ensure that – • All marketing collaterals and sales materials are ready • If you are selling a physical product, you will need a training centre to show franchisee teams how it works • You have earnings projections and business templates for demonstrations to key prospects • Your sales team are out and about in the communities where you want to sell franchises, and www.smeadvisor.com

are knowledgeable about these environments and their challenges and opportunities • Your sales team have 4G connectivity and can access all relevant information on their mobile devices while ‘out in the field’ and in front of the prospect. Screen replicability with head office is essential. If all of this sounds like a lot of work and expense, you’re quite right - it is. Yet compare it to the costs and resources involved in trying to grow a conventional business, and you can see immediately that the same scale might otherwise take decades to achieve. Is franchising for you? It ultimately depends on whether you are interested in the mechanics of business and rewards as such, or if you want to retain a sense of identity and ownership with a product you are passionately attached to. If the former, franchising can indeed be the road to the rich and resounding success that you are searching for.

For an online version, please visit: http://www.smeadvisor.com/news/theroad-to-growth

//DIGITALLY DISRUPTIVE

Hello opportunity! Here’s a faster and more convenient way for SMBs to meet their communication needs Business start-up means organizing all your licensing, location and connectivity needs as quickly as possible. Yet so often, the challenges of getting an SMB underway are compounded by the lack of a single, simple telecoms solution. Now a new initiative offer from Etisalat called ‘Hello Business’ - can supercharge set-up times and deliver a comprehensive answer to the quest for affordable and flexible connectivity...

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//DIGITALLY DISRUPTIVE

As an SMB owner or director, you’re in a sector that is, quite simply, the most critical growth factor in the region’s future. Take a look at the following statistics from the World Bank • SMBs generate revenue and GDP six times faster than larger businesses and create jobs four times faster • 100,000 new SMBs are expected to be established in the UAE in the next three years • The sector has the potential to add US$100 billion to regional GDP and to generate up to two million jobs in the GCC in the coming years The ‘spin’ here, though is that SMBs are required to be much more nimble, agile and responsive than larger businesses this is the whole nature of their appeal and the catalyst for future growth and success. Yet one of the impediments to any business incoming into this dynamic market is the potential delay in organizing connectivity and telecoms packages - not to mention the added cost they can easily involve. Just to make matters worse, that cost is normally capital expenditure that can’t be amortized across a period of time or softened as part of other organic business costs. Say ‘hello’ to better business This is where a new Etisalat onboarding programme, ‘Hello Business’ offers a genuine solution that’s designed specifically for SMBs who need to set up and get their business moving fast. It’s ideal whether you are a single branch or a national franchise - a solution that offers greater flexibility, reduced costs and improved operational efficiencies. It’s a way for businesses new to market to save on their outgoings and get a streamlined, express service that’s easily tailored to individual needs. The advantages of Hello Business include – • A personalised visit by a trained and authorised Etisalat representative to your premises within 24 hours, upon request • Value-for-money offerings for mobile

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//DIGITALLY DISRUPTIVE

Hello Business is designed to ease the set-up and growth challenges of SMBs: it’s just as relevant and appropriate whether you are starting out from a single unit, or opening a new branch with expectations of building on strong existing success.

• • •

•

and office products and services for new businesses in the UAE An expert information kit to enable your business to set up its operations faster and more efficiently A welcome call to ensure hassle-free subscription to Etisalat’s SMB services 24x7x365 access to Etisalat’s state-ofthe-art SMB call centre - 800 5800. This is the region’s first dedicated 24/7 customer care centre serving over 300,000 SMBs Access to Etisalat’s dynamic Business Online Portal, free of charge, to help you manage, order, track and pay your service accounts – anytime, anywhere! Get in touch through e-mail. You can send questions, comments or suggestions to hellobusiness@ etisalat.ae

There’s also the added value of an extensive range of Etisalat Business Centres across the region, offering a complete solution for the spectrum of SMB business needs, whether mobile, fixed line and internet services, or the latest devices, with after sales support Plus, you’ll find these retail touchpoints in key business areas and free zones.

businesses focus on their core competencies, not having to worry about their telecommunications or business solution needs. Not only do our propositions offer great value for money in the market, but they are also designed to meet the unique needs of SMBs and start-ups. We believe that the combination of convenience, removing complexities and providing the high-on-value offerings is another way we help businesses grow in the UAE. We are upbeat about welcoming new businesses to the UAE and would like to say ‘Hello’ to anyone seeking an IT and telecoms partner-of-choice for meeting their business needs.” Meeting your needs Hello Business is designed to ease the set-up and growth challenges of SMBs: it’s just as relevant and appropriate whether you are starting out from a single unit, or opening a new branch with expectations of building on strong existing success. Will your SMB be saying ‘Hello Business’?

Spearheading change and the local economy Given that the SMB sector is so critical in building vibrant economic growth for the region, the Hello Business programme is a key part of Etisalat’s commitment to proactively initiating and spearheading the nation’s progressive and successful development. It gives SMBs a comprehensively strong offer, with a range of tools that can expedite start-up and get the business up-and-running as smoothly as possible. Etisalat’s Chief Business Officer, Salvador Anglada, explains more about the Hello Business offer -

“Any new business undergoes major challenges and issues relating to financing, resources hiring, location selection and so on. Our new programme is one way of helping

For an online version, please visit: http://www.smeadvisor.com/news/ hello-opportunity

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Give your business an easy start. Call us now!

800 5800 etisalat.ae/hellobusiness

T&C Apply

Get on board and experience a smooth start to your business with a personalised visit within 24 hours, exclusive offers on telecom services, priority helpline any day and at any time, and much more.

MOVERS & shakers

An exclusive interview with

Ronaldo Mouchawar Through the pages of the magazine, we’ve often featured businesses that are undergoing fast expansion, enjoying unbeatable growth or breaking barriers to achieve new heights of success. This month we met up with a business that has not only managed to tick all these boxes but is continuing to set the pulse of regional digital space. In an exclusive interview with SME Advisor, Ronaldo Mouchawar of Souq.com – shares his audacious expansion plans and his vision to dominate the e-commerce industry…

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MOVERS & shakers

Ronaldo Mouchawar

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MOVERS & shakers

Key achievements:

• Souq.com mobile app for Apple, Android and Windows has seen almost two million downloads to date, and was listed by Apple as one of 2014’s top five mobile apps on the App Store for the region. • Souq.com launched the White Friday promotion the region for the first time in 2014 – it was the biggest online shopping weekend that this region has seen. During that weekend, Souq.com was able to sell 246,000 products • There are over 30 million visits per month on Souq.com. • Google also reported Souq.com to the second most searched for brand in 2014 in the UAE. • Mobile commerce has been a huge driver of growth in 2014, both for Souq.com, and for the Middle East’s online market as a whole. M-commerce grew 170 per cent in 2014, and Souq.com saw approximately 45 per cent of its sales originate from mobile devices.

How did Souq.com come about? What was the inspiration behind the idea? The idea was to empower people to trade online. We saw that a lot of work was being done all across the world in the e-commerce space. For instance, you had Alibaba.com in China and the likes of Amazon and eBay in the USA, but there wasn’t anything similar within this region. So, we thought it was imperative to spearhead an online platform that helped us grow our capabilities in this region. That’s when we got inspired to create Souq.com.

What were critical factors that helped you take the leap from an e-commerce start-up to the region’s leading online marketplace? Firstly, when Maktoob was acquired by Yahoo, it gave the team and everyone around us confidence in the Arab internet and set the impetus for Souq. com. During the initial years, we had a tremendous focus on understanding our consumers and their needs. Furthermore, we put in a lot of effort in building a dynamic team. This helped us make the transition into becoming what we are today.

How do you ensure that operations are streamlined especially with such fast-paced growth? As you grow, of course you have bigger challenges to face; now you have to manage the scale of operations, a bigger customer base, more countries, increased orders, and so on. The key factor is to maintain a skilful team; I

strongly believe that my team is what makes this company work. You have to empower your team and ensure that they are having fun when tackling challenges. Another critical success factor is that we operate locally within markets which enables us to better understand the needs of the different stakeholders.

Souq.com is renowned for its sophisticated supply chain system. How do you manage an efficient supply chain? When it comes to business and people management, you require entrepreneurship skills, but when it comes to supply chain management, you also need to have technical expertise, industry knowledge and best practices.

In your expert opinion, what should be the next step in the development of the Souq.com proposition? I think a lot positive things are happening around us and these will impact us in a good way. Firstly, we see that the Arab consumer is now well connected online – especially when it comes to mobile; smartphone penetration is very high. This has led to buying on mobile to significantly rise. To summarise, more people are now online which is great for Souq.com. Secondly, with all the services we have built, consumer confidence has risen in buying online. When we started Souq.com, people were very sceptical about online purchasing – they would often find that the product didn’t match the specs mentioned, the delivery was delayed or the payment wasn’t secure. Today, the consumers are confident to make purchases on our online platform

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MOVERS & shakers

I think the internet is a great tool for this region. I believe this space is hungry for entrepreneurs to innovate.

and this is reflected in the increasing numbers of visitors to our site. Thirdly, as we scale across different countries, our merchants find setting up shop on Souq.com very valuable – they are able to list their products where it’s accessible to millions of people. These are three critical trends that we’ve identified and we are looking to capitalise on them in the months to come.

What would you say is your core mission with Souq.com? Our key mission is to continue to empower people to trade online. This creates a wealth of opportunities; for instance, it creates a lot of job openings. Souq.com is synonymous to empowerment – whether it’s our employees, the wider supplier community or even the industry itself.

What were the biggest challenges you had to face during your journey as an entrepreneur? What were some of the lessons learnt? For us, raising capital was definitely a major challenge – initially investors weren’t very receptive to the idea of supporting an e-commerce venture. Then there were other hurdles like shipping and online payment but our team’s sheer hard work and perseverance helped overcome them. I also realised that it very important to have a good mentor, who can potentially help you in avoiding a few mistakes. In addition, it is critical to have a sellable business plan. Of course, you have to be extremely dedicated and persistent when it comes to starting a new business. I didn’t

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work on Souq.com as a part-time job; I was working as an employee and I decided to quit when I started my own business, and it required a lot of personal sacrifices.

What are your thoughts on this region’s internet space? I think the internet is a great tool for this region. I believe this space is hungry for entrepreneurs to innovate. The reality also is that this space is so exciting – working with an e-commerce platform means you have no boundaries or limitations, you are accessible globally. I would also say that for me personally, being an entrepreneur - especially in the digital space - has been extremely rewarding. I would strongly encourage aspiring entrepreneurs to consider starting an e-commerce business.

Any words of wisdom for aspiring entrepreneurs? I would say: • Ensure that you are working with a good co-founder • Make sure you are surrounded with positive mentors • Sell your story – not just internally, but to investors as well • Embrace your mistakes and learn from them

For an online version, please visit: http://www.smeadvisor.com/news/anexclusive-interview-ronaldo-mouchawar

MOVERS & shakers

Mudassir Sheikha

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MOVERS & shakers

A radically different road

Mudassir Sheikha and how he started Careem Passionate entrepreneur Mudassir Sheikha is spearheading a new movement of forward thinking entrepreneurism with his high-end car booking service that tackles the rising global challenges within the ground transportation industry. In an exclusive interview with SME Advisor, he talks pricing, staying ahead of competition and his plans for future expansionâ&#x20AC;Ś

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MOVERS & shakers

Our experience has been fairly seamless – we have been warmly welcomed by the consumers and the policy makers across most markets that we have made an entry into.

ition

Careem’s value propos

• 24/7 call centre • A customer rewards and loyalty programme • A range of payment options • Advanced booking

How did Careem come about? Before we launched Careem, we were management consultants and travel was a major part of our job. During that time, we realised that travel essentially had three important elements – hotels, flights and cars. Flights and hotels had several number of service providers with streamlined search, booking and payment facilities. But when it came to cars, there were very few reliable, consistent and affordable sources available. We identified a problem and wanted to solve it. That’s how Careem came about. Initially, it was just a basic Web service – you go online and make a booking from Point A to Point B, it was as simple as that. Our first clients were consultancies, who we knew were faced with this problem. Of course, the corporate market was sizeable but the consumer market for ground transportation was significantly bigger. The GCC alone is a $5 billion market and if you count the broader Middle East it becomes a $10 -15 billion market. So, it was a tremendous opportunity. A year after we entered the corporate market, we enhanced our offering with a mobile app and started working with the consumer market. Again, we were looking to solve some of the challenges consumers faced on a daily basis when trying to get from one place to another.

How many markets is Careem currently operating within? We are now across 18 cities and 10 countries. So all the way from Morocco to Lahore and everything in between. Our biggest markets, however, are KSA, Egypt and UAE. Every city is different and has its own set of challenges. Every time we enter a new market, we spend the first few months doing research and subsequently adapting and tailoring our

offer to the unique needs of the market. Internally, we call it a product market fit. This includes a thorough scoping of the profile of the consumers as well as the requirements of the drivers. We evolve the offering to meet the needs of all the stakeholders in that city. That’s how you achieve organic growth.

What do you mind have in terms of future expansion? Between Morocco and Lahore, there are 40 urban centres and we are currently based in 18 of them. So, there are another 22 centres that we still haven’t tapped into. In addition, we would like to further expand into the countries that we already have a presence in. For instance, we might have operations in Riyadh in KSA, but not in Medina, Mecca and so on. That is something we are actively working on.

How do you work with the stringent policies and regulations of entering into a new market? Our experience has been fairly seamless – we have been warmly welcomed by the consumers and the policy makers across most markets that we have made an entry into. I think this is because we are providing a valuable service that benefits all the stakeholders. The consumers enjoy improved service, the suppliers get more business and the regulators experience a highly efficient ground transportation system. It is also important to understand that we are working with existing licensed suppliers in the market and catering to the existing consumers. We are simply an online platform connecting them more efficiently with each other. With a technology such as ours, we are able to enhance the ‘matchmaking’ between the taxis and the customers.

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MOVERS & shakers

In addition to your market size, growth is a critical factor that investors consider. I’m very pleased to say that Careem has been growing 30 to 40 per cent month on month. This is exciting to investors.

With a company such as yours, how important is it to stay ahead of the technological curve? Technology is a big part of the business and this is reflected in how quickly our tech team is expanding – we currently have about 80 people managing our technology function and they are spread across the board. We have IT, engineering and data sciences teams in Germany, Dubai and Pakistan and they are dedicated to continuing research and development of our back-end software.

How do you ensure that you are offering competitive pricing to customers? The regulation on pricing differs from market to market. In Dubai, for example, RTA requires that our prices are at least 30 per cent above the taxi prices. We have priced our services at the bare minimum that we can. So, if you look at our economy service, those prices are exactly 30 per cent above taxi prices. Of course, we run promotions and special offers from time to time which make the offer even more affordable. On the other hand, in a market like KSA, the law requires that we price our services at par or above taxi prices.

Who do you see as your competitors? What makes you different? Our primary competitor is the SanFrancisco based company Uber, which made its entry into the Middle East in 2013. I think what makes Careem different is the fact that it was built in the

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Middle East, for the Middle East. For instance, we have an option to make advance bookings – a facility that is deemed to be quite important in this market. In addition, we have our own customised maps for this region to enhance our offering and increase our accuracy of location. We have a 24/7 call centre through which customers can make bookings, share feedback, ask questions, and so on. We also provide a range of payment options; in KSA, for example, customers are able to use Saudi Telecom loyalty points.

What do you think makes Careem an attractive proposition to your investors? When you approach someone for external funding, you have to look at things with an investor’s mind-set. What does the investor want? Based on my experience with Careem, I believe there are two fundamental areas: • Size of the market: They want to work with companies that have a business idea that will solve a big problem or gap in the market. Careem’s market size is huge and that appeals to investors. In fact, we are not just restricted to the taxi market, there are many people who were previously driving their own cars that are now using our service. • Organic growth: In addition to your market size, growth is a critical factor that investors consider. I’m very pleased to say that Careem has been growing 30 to 40 per cent month on month. This is exciting to investors. At Careem, we have been extremely fortunate to work with a raft of investors that have brought on strong governance frameworks, mentoring and a wealth of management experience, in addition to financial support.

MOVERS & shakers

HOW IT WORKS

2 BOOK A RIDE EASILY

READY TO GO?

Already a user? Login to the website or use our mobile app to order a car. You can also call or email us and we’ll be happy to assist you. Choose between booking a car to come to you now, or scheduling a ride for later by selecting a specific date and time.

Choose the car type that best suits your needs then select from our first, business, or economy class cars and we will automatically locate your address using GPS. Confirm, or edit your location and tap request.

4 TRACK YOUR RIDE IN REAL-TIME

PAYMENT MADE EASY

You’ll be able to message or call your driver, or just sit back and follow them on the map. They’ll be at the location you requested in just a few minutes. We’ll send you an SMS to let you know they’ve arrived.

Select your payment method by choosing to pay cash or with a credit card when setting up your account. You won’t have to wait for the driver to process your credit card. We’ll just put the charge on your file.

5 HOW DID IT GO? Rate your driver and let us know how you liked your trip. These ratings help us monitor and improve service levels. We want to ensure that only the drivers with the best skills are part of our team.

What were some of the major challenges you had to face along the way?

Looking back, I can’t help but say that we’ve had such a rewarding journey. However, if I had to highlight the top three challenges that any entrepreneur has to face when starting out a new business, I would say – a) Cost of starting a business: The initial set-up costs can significantly impact a business owner with limited funds. b) Lack of a proper funding ecosystem: Most businesses look to bootstrap because the ecosystem for external funding is still quite weak – there is limited access to angel investors, VCs and so on. c) Skills gap: The reality is that a vast majority of the skilled talent prefers to work for MNCs; they aren’t willing to take the risk and work with a small business. We are experiencing a slow shift in the trend but SMEs still find it difficult to find the right talent.

Where would you like to see Careem in the foreseeable future? The way I look at it, any institution has four primary characteristics. It has to be: 1. Big 2. Awesome 3. Socially responsible 4.Producing leaders This is exactly what I have in mind for Careem – I want our brand to become an embodiment of these core values, while staying aligned with our mission: “Simplifying the life of people by building an awesome company that inspires”! For an online version, please visit: http://www.smeadvisor.com/news/aradically-different-road

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ENTREPRENEURSHIP

Reshaping

the future How innovative education is paving the way for entrepreneurship Shatha Maskiry from Protiviti Oman shares critical adviceâ&#x20AC;Ś

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ENTREPRENEURSHIP

The increasing complexities resulting from today’s technologydriven economy present us with a significant talent crisis that is pleading for attention at a national level not just in Oman but across different countries around the world. In fact, major economies like the US and China have been paying a lot of attention to innovative education. Let’s take the example of Oman. The situation is no different in Oman but we probably got suddenly awakened by recent events, and facing the reality that our natural resources will soon deplete and the increased focus on SME development is inevitable. The only viable solution between now and then is to proactively place a strong emphasis on education that fosters the development of essential skills to navigate through this disruptive digital age that has left us without any breathing space. The current climate in Oman requires heightened awareness starting with the parents. They need to realise that the market is pleading for considerable measures of responsiveness to bridge the present gaps that the digital age has produced between the market needs and the calibre of the workforce. This will require parents to facilitate a learning environment for kids and at a national level; a remodelling of the education system with a long term view of swift adaptation to the dynamic changes and needs of the marketplace. A new relationship is needed between parents and kids, as well as teachers and students. A lot is being said on the stimulation of “Science, Technology, Engineering and Mathematics (STEM) education” but in this modern age where technology has integrated in our lives; STEM cannot be effective if it just starts at university level or be taught in increments at

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ENTREPRENEURSHIP

In Oman, there has been a remarkable focus to facilitate the development and growth of the SME ecosystem which means we are trying to breed selfmotivated entrepreneurs. Shatha Maskiry, Managing Director, Protiviti Oman

incubated companies. This needs to be instituted and infused into the mind-set of our youth at a very young age. We need to engage with them and allow them to explore their natural entrepreneurial acumen and curiosity; to allow them to fearlessly question everything (let us face it, sometimes they even mentally challenge adults) because do not need to hold back their notions. Teachers must take an extra stride to connect with kids and grow their interests in the value of STEM. It is not as sophisticated as it sounds; introduce LEGO to them, 3D printing, designing apps, gamification and much more. Let them get crafty with their hands; why limit them when they do not place limitations on themselves. This is an opportunity for them to create opportunities for us as it very easy to acquire knowledge at a younger age. We need to shape them in their critical development stage when they are confident and brave to discover and explore their ideas. It is easy to instigate their curiosity; help them build, create, dismantle, explore and innocently have fun in the process of learning. Currently, the gap is widening between students and teachers. Students feel the answers they need are at the tip of their fingers on their smartphones and that the learning environment is not helping when teachers are leading classes all day with heavy text books that has no appeal. Teachers need to provide students with an unconventional but enriching experience whereby they adopt teaching techniques that inspire kids to grow a genuine interest in STEM education. No matter what problems are presented to kids; they prove to have a remarkable sense of logical reasoning. There are a lot of other things that can be done aside from STEM education to stimulate innovative thinking by encouraging kids to

participate at science fairs where real problems are presented with learning opportunities that interconnect with STEM topics. Kids are also naturally competitive so we should introduce national competitions to stimulate their interest of wanting to rather than having to. Finally, there are many incentive programmes that can be developed to encourage older kids to participate in such as summer programmes or after school activities i.e. CSR events to connect their humanitarian side to the real world by placing them in a realistic learning climate. All these are opportunities to fuel and inspire kids to think along innovation and sustainability. These sort of programmes develop the confidence level of students and before they enter the job market; they would probably be featured on the front of a leading magazine as a successful entrepreneur. In Oman, there has been a remarkable focus to facilitate the development and growth of the SME ecosystem which means we are trying to breed self-motivated entrepreneurs. Having said that; we need to be fair on ourselves and face reality; we cannot just develop an innovative mind-set in a short term or expect miracles to unfold in the later adult life of a fresh entrepreneur. This is all very new to the mass without dismissing the exceptions but even so; those are rare and few who hit the road at the right time and place. Today, with the influx of highly successful young entrepreneurs and start-ups (i.e. 3D Printing, Drones, Apps, Robotics etc.); it is evident their story started in college where they harnessed their programming and algorithmic skills together with a friend or two that complimented their skillsets. Most transformations are presented with challenges and this will demand significant investment and attention on research,

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ENTREPRENEURSHIP

We need to properly accelerate the growth of the SME market in Oman in terms of the real wealth it creates and that will require a robust pipeline of STEM educated workforce who will fulfil the demands of innovation, job creation and a sustainable economy.

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collaboration; hiring foreign experts, training and developing advanced teaching competencies because there comes a time when teachers also lack confidence and that definitely does not help students. Teachers need to break out of their conventional ways of educating and put their heart out to also innovate by developing rich content; interactive delivery of content and engagement with students to stimulate their interests. Also, softening the method of how students get assessed will alleviate stress and enhance their learning experience. Let us move away from memorization and examinations and get them hands on with projects and collaborating as a team because that is the future of how we will succeed as entrepreneurs. All these elements should be integrated manner to devise a holistic solution that can be implemented without undermining any element because it may compromise a sustainable change. Clearly, women in Oman embraced the opportunities that technology and connectivity offered to their home business and this actually narrowed the digital divide between the generations but having said that, the youth need to be guided around STEM subjects to enhance their perceptions and enrich their experiences to unleash their potential. I have no doubt that this will promise a sustainable future and a powerful economy but can only be achieved if we tactfully invest in creating a learning environment from home, to extracurricular activities to schools with laboratory facilities - each offering students an opportunity to explore, research and get hands-on training to an environment that fosters entrepreneurial outlook that will have them geared to get businesses rolling and creating wealth for themselves and others. The facilitation of change will first mean we need to eliminate the current barriers and then we can unlock the value that

STEM education. There are some government interventions in Oman just like in some other countries but we need to catch up with this significant transformation to create jobs, and secure ourselves to be part of a robust sharing economy. We have to get it right since we are still in our development phase and this is achievable with commitment, multiple collaborations, integration; eliminating silos and investing wisely to produce STEM educated workforce. The need is clear and the transformation will secure the creation of job opportunities for new grads to consider. There are successful examples out there and we can certainly be one of them. It is a long term view but we donâ&#x20AC;&#x2122;t have time, it should start today. We need to properly accelerate the growth of the SME market in Oman in terms of the real wealth it creates and that will require a robust pipeline of STEM educated workforce who will fulfil the demands of innovation, job creation and a sustainable economy. Furthermore, letâ&#x20AC;&#x2122;s take this template and aspire to implement it assess the wider like region.

For an online version, please visit: http://www.smeadvisor.com/news/ reshaping-the-future

STRATEGY

e v i t a v o n n I CUSTOMER SERVICE boosting exports the smart way In a race to increase export numbers, is your SME forgetting one of the most critical aspects of doing business? Dr. Ashraf Mahate emphasizes the importance of customer service and explains how it can help spruce up your bottom line.

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Time after time various surveys highlight the importance of excellent customer service in influencing consumer decisions. Even more interesting is the fact that customers are willing to pay a premium for better service. Customers are more likely to switch to alternative suppliers when faced with poor customer service. In today’s highly connected world customers can, at a click of a button, search the internet for alternative suppliers. This has meant that not only do customers expect excellent products from their suppliers but also service. Any failure is quickly shared on the various online social platforms. Therefore, it’s important for companies to up their game and enhance their customer service to ensure continued success. Excellent customer service is more important for companies that are exporting their goods into foreign markets because they are competing with a larger array of competitors. Some of these competitors may be domestic firms who have the home ground advantage and are better able to understand the customer service needs of their customers. Whether one is competing in the domestic or foreign market it’s always important to benchmark its service with competitors. If a firm’s competitors have better customer service than it is most probable that there will be an outward flow of business. Of course the opposite is also true and hence through regular benchmarking a company can understand how it stands against its competitors. Traditional methods to gauge customer service have tended to be through surveys or feedback analysis after the point of sale. These methods assess the customers’ experience with some perceived needs and expectations. It is an established fact that excellent customer service leads to repeat business as well as referrals and some companies use this as a proxy measure. In the B2C arena companies tend to use the mystery shopper technique which seeks to replicate a typical customer. Mystery shoppers are an effective

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manner to understand the strengths and weaknesses of the company’s customer service. Although the traditional methods go a long way towards improving a company’s level of customer service they do not lead to innovation in the area. To be truly innovative companies need to think beyond their existing level of customer service and address the present and future needs of their customers. In essence it calls for a better understanding of customers’ needs so that the company can think of new and innovative ways of satisfying them. However, truly knowing a customer’s needs is not as simple as asking them what they want. The reason for this is that customers seldom really know what they need. Second, and perhaps more often is the case that they do not understand the product or service that is being sold to them and how it can be used. Therefore, simply producing a product that is based on what customers’ say they need may not be sufficient. What is required is to understand the real customer needs in an objective manner? A famous example of this is Kleenex which, in 1924, introduced what it referred to as the disposable face towel to remove make-up. A couple of years after the launch of the product the company found out that the customers were actually using the product as a disposable handkerchief to blow their noses. At that point Kleenex started advertising its product not as a disposable face towel but as a handkerchief. As a result of understanding how customers used their product Kleenex was able to double its sales in less than a year. The Kleenex case is one of numerous examples of how customers do not really care how a product works or what it was originally intended to be used for. Once customers find a use for the product and they are happy they will continue to use it in that manner. Companies should not take their product design for granted and always collect feedback on how it is

It is an established fact that excellent customer service leads to repeat business as well as referrals and some companies use this as a proxy measure.

actually being used to reveal the real customer needs. It is through understanding customer needs can a company be truly innovative in its customer service. The first step to innovative customer service is to know what customers are seeking to achieve from the purchase of the product. This is perhaps the most difficult step because it requires the company to understand the underlying reasons for the purchase. In doing so the company is also dealing with its blind spots so as to develop its own vision systems. As discussed above a company’s blinds spots cannot be removed through simple customer surveys but it requires a deeper analysis. A

STRATEGY

The multilayer interactions that a company has with its customers imply that it is probable for each department to incorrectly assume that a customer uses the product in a particular manner and expects a certain level of service.

company has many different layers and types of interactions with its customers. For instance, the sales manager deal with the customer’s purchasing staff. The end user may have to deal with the company’s call center employees or field repair staff. The accounts department deals with the customer’s finance department, the logistics department deals with the product delivery and warehousing staff and so on. Each one of these interactions is very different and all important in ensuring that all the different people involved are satisfied. A similar situation exists in the B2C environment whereby the customer will come across different ‘faces’ of the company and each have the ability to deliver a positive or negative experience. The multilayer interactions that a company has with its customers imply that it is probable for each department to

incorrectly assume that a customer uses the product in a particular manner and expects a certain level of service. The second step is to understand the larger process in which the company’s product fits into. This is relevant for both the B2C and the B2B sectors. Through understanding the customer’s processes allows the company appreciate the metrics by which its products are judged. More importantly, understanding the process will allow the company to improve its products as well develop offerings that help the customer execute the process more efficiently. There was an interesting case of when a company went to visit one of its customers and found out that they were laminating two of its boards together. When asked why this was done the customer replied that the company did not produce the board in the required thickness thus requiring

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STRATEGY

it to perform an additional function in the production process. As a result of this insight into the customerâ&#x20AC;&#x2122;s use of the product the company was able to develop a product that was better able to meet its requirements. Interestingly, being able to meet the needs of the customer a company can not only gain additional business, loyalty, and positive reputation in the marketplace but also allow it to surge ahead of the competition. Of course in reality it may not be possible for a company to understand the production process of every single customer but it can nevertheless understand those of its main buyers. The third step to innovative customer service is to understand what additional services can be carried out to assist the customer in completing their production process faster, cheaper and more efficiently. Getting close to customers can never be underplayed however it can be time consuming and quite expensive. However, in the world of the internet and social media platforms a company can with modest resources extensively engage with customers. For exporting firms the internet is a wonderful tool that allows them to overcome the constraints of geography and distance. Also, the speed of the internet allows firms to overcome the trade-off between richness of data and reach. If a company needs to physically meet with a customer than it needs to limit either the number of customers that it has a dialogue with or the level of the interaction. In the world of the internet these are no longer constraints. More importantly, the internet gives the customer the freedom to decide the extent of the dialogue or interaction they choose to have with the company and varying it depending on need or perceived payoffs from the interaction. Through better and more extensive engagement with customers the company is able to develop peripheral products and services that can make the customer more loyal to it and give it a competitive advantage over competitors.

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The fourth step is for the company to appreciate that the basis of excellent customer service is to invest in talent and resources. One can have all the best processes and systems but if it does not have staff who are talented and appropriately trained then it will not be able to achieve its goal of innovative customer service. Also, if a company decides on focusing on customersâ&#x20AC;&#x2122; outcomes it needs to allocate time and resources on pursuing this in the most effective manner. Simply paying lip service to customer focused objectives will achieve little and will most likely have the negative impact of alienating customers. A company needs to ensure that it has a strategy of ensuring that innovative customer service is at the heart of its strategy and is given adequate resources. In todayâ&#x20AC;&#x2122;s internet dominated world customers are extremely fickle and will move to new suppliers who can better meet their needs. Therefore, if a company wishes to gain a competitive advantage both in its domestic and foreign markets it needs to be high innovative in its customer service. This implies the company needs to be innovative in how the product is delivered and the interactions it has with customers. In a highly competitive global marketplace there is no substitute to getting close to customers and truly understanding their needs so as to develop products and services to enhance their business.

Meet the author...

Dr. Mahate received his doctorate from Cass City University Business School in London (UK). He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London). He is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). He can be reached at ashraf.mahate@ dedc.gov.ae.

For an online version, please visit: http://www.smeadvisor.com/news/ innovative-customer-service

LEGAL

The GCC Railway Network

Transborder rail transport in the Arabian Peninsula dates back to the early 20th century and the Hejaz Railway which linked Damascus in Syria to Medina in Saudi Arabia. Its principal purpose was to transport pilgrims between Constantinople, the capital of the former Ottoman Empire, and the Hejaz in Arabia, the site of the holy city of Mecca, whilst also shortening travel time for military forces. Over a century following the closure of the Hejaz Railway, the Gulf Cooperation Council (GCC) is now embarking on one of the largest modern cross-border rail networks in the world.

Project overview Economic development and rapid population increase demand a shift from road transport towards a more developed national and regional transportation system in the Gulf. The GCC Railway, once fully operating, is intended to connect all six GCC nations with track running through each of the following key cities: Kuwait City, Dammam in the Kingdom of Saudi Arabia (KSA), Abu Dhabi and Al Ain in the United Arab Emirates (UAE), Doha in the State of Qatar, Muscat in the Sultanate of Oman, and Manama in the Kingdom of Bahrain. The initial project feasibility study was approved by the GCC ministers in October 2008, and thereafter,

conducted in 2009. Based on that scope, the regional network would comprise 2,177 kilometres worth of railway lines, approximately 180 kilometres of which would connect major transport facilities across the Gulf including ports, airports and industrial zones. However, since approval of the initial study, plans have been subject to change. By way of illustration, in 2008 it was intended that the railway would connect Bahrain and Qatar via a proposed Qatar-Bahrain causeway. That crossing was put on hold in 2010. Notwithstanding changes in connections between countries, the basic strategy for project delivery is agreed. Each participating GCC

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member state will be responsible for the construction work relating to the individual sections of the railway falling within its border, before the common stations, branches and freight terminals to supply the main network. The overall capital investment cost for the mixed passenger and freight service railway could, it is said, reach figures of up to USD 200 billion. The member states intend to share that cost in proportion to the length of the main line in each country. The aspiration is for the cost of the rolling stock, and operation and maintenance to be borne by the private sector, although time will tell whether this is the reality. With a target operational date set

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for 2018, and a series of technical, geological and regulatory obstacles to surmount, the participating GCC nations have resolved to set about delivering an ambitious project which could propel them to the forefront of the rail industry practice. Progress to date The detailed engineering design work is nearing completion this year and it is understood that approximately 400 kilometres of track is already under construction/constructed. Each of the GCC governments is planning or implementing freight and passenger railway infrastructure as part of their individual transport master plans. Those plans include the long distance lines which are intended

to form part of the GCC Railway, and other urban rail projects that are additional to the common railway. The UAE and KSA are the leaders in rail investment, having made significant headway with the practical steps required to implement the project. At the forefront of this progress is the Etihad Rail Network. Etihad Rail released invitations to tender for Phase 2 of the UAE’s federal railway project in 2012. The project objective is to link the seven Emirates of the UAE by freight and passenger rail. Phase 2 was previously planned to extend the existing network to the KSA border via Ghweifat in the west, and the Omani border via Al Ain in the east, forming a vital part of the GCC Railway. KSA is also an active player, with significant lengths of mainline track already functioning through its terrain. The Saudi Railway Company Project (previously the NorthSouth Railway line) is expected to expand the existing rail network to accommodate a 2,400 kilometre freight and passenger line running from Riyadh to Al Haditha, with extensions to Hazm Al-Jalamid and Ras Al Khair, all of which will comprise part of the GCC Railway. KSA’s second major scheme, the east-west Saudi Landbridge Project, is intended to deliver an industrial rail link that is interoperable with the Saudi Railway Company Project and connects Dammam with Jeddah via Riyadh. The Saudi Railway Company plans to increase capacity of this freight line, create a passenger service and upgrade infrastructure/rolling stock to agreed regional GCC Railway standards. The remaining GCC partners have initiated projects for sections of track which it is anticipated will in time be connected to the GCC Railway. Such projects include Qatar Rail Company’s long-distance freight line (part of the Qatar

LEGAL

Reduced travel time will result from passengers no longer being subject to customs checks at every border. Instead, passports and goods will only be checked in at the destination country.

Integrated Rail Programme), a new Bahrain causeway, the Oman Railway Company’s USD$ 15 billion rail network and the Kuwait Ministry of Communication’s planned national rail network. Plans also exist to extend the GCC Railway, in due course, to the Yemen border, and potentially beyond to other destinations including Jordan, Iraq, Syria and Turkey. Benefits The GCC Railway is intended to bring with it a raft of immediate and long term benefits. Reduced travel time will result from passengers no longer being subject to customs checks at every border. Instead, passports and goods will only be checked in at the destination country. A reliable and faster freight transport system will mean shorter delivery lead times and greater supply chain efficiency. This also assists with the logistics of exploiting the Gulf’s natural resources, such as phosphate and other minerals in Saudi Arabia. The project is expected to generate employment opportunities for local workers, companies and rail service providers, and as travel becomes more accessible, establish free movement of labour between member states. The intention is therefore that it serves to strengthen social and economic integration within and amongst the GCC member states. The railway promises a safe alternative to sea trading import/ export routes currently blighted by piracy which presents a threat to any supply chain of the Arabian Gulf. These factors are intended to work together to stimulate intraregional trade. That should improve competitiveness and strengthen the investment environment, which, in turn, supports the development of export trading. In short, the GCC Railway is expected to be an enabler for diversifying non-oil economies and

thus a critical driver of sustainable growth for the GCC at a national and regional level. It represents a GCC-wide commitment to delivering permanent improvement of regional transport infrastructure and services for the greater good. Further information If you would like further information on any issue raised in this update please contact: Ross Barfoot Partner, Clyde & Co E: ross.barfoot@clydeco.com Sinead Boden MENA Community Investment Manager E: sinead.boden@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

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FINANCE

Getting the best out of Salesforce CRM: a guide for SMEs A Customer Relationship Management (CRM) solution allows your business to manage and analyse critical customer information such as purchase history, buying preferences and transaction frequency. For early and growth-stage businesses, handling such data effectively can be an important stepping stone in building a solid customer base and boosting revenue. Patrick Crosbie, who is at the helm of Tenacre – a certified Salesforce partner - shares critical advice on how an SME can get started…

If cashflow is the lifeblood of an SME, then a continual infusion of new sales and revenue is what keeps the heart pumping. Using a sophisticated CRM system, such as Salesforce, to manage the sales process gives the sales and marketing teams a central system to log all of their activities, notes, meetings and e-mails. Having this data saved to your customer’s file means that the company is building value in its data. If the salesperson leaves, the knowledge stays within the business rather than walking out the door, possibly to your competitors. But using a CRM system shouldn’t just be about good housekeeping for your sales team. It should be a tool that helps your business increase revenue. We speak about a ‘sales process’, but how many companies really have a defined set of steps that they use consistently in their sales activity? How can we help our sales teams to not shortcut the process? Creating automated business processes within the CRM can ensure that there is a specific set of steps taken for each sales opportunity. Being able to match these specific steps to the sales stage (e.g. prospecting, developing and closing) has a dual benefit. First of all it means that each step or task needs to be marked on the CRM as completed before moving it on to the next stage (e.g. prospecting to developing), preventing shortcuts being taken. The second benefit is that the sales pipeline reports that show the value and projected close date of each deal will be far more accurate. Each sales opportunity will have been taken through the predefined steps, and as a result deals will get qualified out much earlier in the process. Marketing and marketing automation Having your customers and prospects categorised and tagged means that you can easily start marketing campaigns that are uniquely targeted at specific groups such as existing clients, prospects or clients in a

particular industry sector. If the records are categorised by these ‘filters’ (these customisations are built into the system for you), then you can segment the database accordingly for e-mail marketing or sales calls. One of the simplest yet most effective marketing automation tools is the ability to connect your website and landing pages to the CRM. This connection filters all new inbound leads into the Salesforce system. When the customer completes the landing page contact form or the website ‘contact us’ page, they will instantly receive an e-mailed automatic response via Salesforce acknowledging their inquiry. This

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FINANCE

that are manually produced in Excel are time consuming, disconnected from supporting data, and subject to formula errors or corruptions. Sales reports from your CRM system, in contract, are automatic and always in real time. There isn’t a need to actually spend time producing a report. Instead the reports criteria (such as sales pipeline for the current month) is defined once and then simply reflects the results at that moment. The reports that are generated are based on the data that has been entered into the system, so there is built in data integrity to what you see on your report. Being able to apply restricted access to the reports and dashboards enables the business to securely make data available to the staff that need it, and prevent access to data that is confidential. Both reports and dashboards can be programmed to be distributed to specific groups of users each day, week or month. The distribution can be send by e-mail, via the secure social messaging application, ‘Chatter’, or as a push notification to the Salesforce1 mobile application. Whichever distribution method chosen, the reporting options are usually one of the most transformative consequences of the system implementations. ‘lead’ is then automatically routed to the salesperson that is best suited to following up. The speed to response for the customer is significantly shortened, and the likelihood of closing the deal significantly increased. Marketing automation in Salesforce provides our clients with another significant benefit; the ability to track all leads from the marketing campaign (AdWords, Facebook, e-mail campaign etc.) through to the value of the revenue if the deal closes. Measuring the marketing effectiveness against the actual revenue generated can be something that businesses find difficult. The marketing activity is

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often measured in terms of clicks or impressions rather than in Dirhams generated in sales. Reporting this data and showing the return on investment per campaign is something that our clients find immensely useful. Real time reports and Dashboards It is said that if you can’t measure it then you can’t manage it. This is particularly true for SMEs, where there’s usually fewer people and less access to data. Decision making suffers as a consequence. Being able to track critical data is time consuming and reliant on your staff completing reports on Excel spreadsheets. Reports

Application development and integration Each business has their own processes and data management requirements, and for some clients the customisation of the standard Salesforce system is enough to get them operational. The ability to customise the ‘out of the box’ features of the CRM system and generate customised reports really allows Salesforce to be moulded to the requirements of any SME. For businesses that need the customisation to be taken to the next level, building completely new and bespoke applications within Salesforce can be achieved quickly and relatively inexpensively. When

FINANCE

Becoming a goal oriented company means that more gets done, and that the business focuses on the important targets rather than on the merely urgent.

applications are built they are integrated with all the standard features of the CRM platform, they share the same DNA as the ‘out of the box’ standard feature set. The result is that the capability of the Salesforce standard features are extended and enhanced. Company culture When done correctly, the Salesforce implementation at your business will alter your company culture for the better. People like to work at companies that are investing in their systems and technology, it shows them that the owners are committed to the long term success of the business. The implementation planning process (like the process of writing a business plan) has many secondary benefits. The planning stage naturally involves some analysis of the current state of the business. Your key members of staff will take the opportunity to make recommendations on how old ways of doing things can be updated before the new CRM is put in place. This can be an opportunity for a change-management process, or at least a ‘spring cleaning’ of how your people think about how they do their jobs on a day to day basis. The ability to set targets and then track the progress of how the business actually meets these targets can be a significant change to how many businesses are managed. Becoming a goal oriented company means that more gets done, and that the business focuses on the important targets rather than on the merely urgent. When these targets or key performance indicators are tracked at an individual or team level, the speed at which your company culture changes can be remarkable. Salesforce has been ranked the world’s leading CRM platform for the past five years in a row by Forbes magazine. Businesses owners and executives across all industries

are implementing this platform to help bring a structure to how the sales, marketing, service and the operations of their businesses are managed. A trusted SME partner Working predominantly with SMEs, we’ve developed fixed cost implementation packages that help businesses to get up and running quickly and within budget. Our job is to make sure that the technology is customised in a way that enables our clients to have vastly improved data management, business automation and reporting. If we get this right, our clients will make more money that’s the bottom line. When we start to work with a new client, there’s often an expectation that we will focus completely on the technology. The truth is that technology is actually the easier part of the project. At least as important is helping to create good processes that can be managed and automated, and getting the people in the business motivated, trained and supported in their long term usage of the software. We’ve now worked with dozens of companies in the UAE, and we’ve seen the impact that the CRM has on their performance. If you’re considering Salesforce CRM for your business, we’d be more than happy to support you through this process. Good luck!

For an online version, please visit: www.smeadvisor.com/2015/07/getting-thebest-out-of-salesforce-crm

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COUNTRY FOCUS

Malta Gateway to

opportunities State-of-the-art infrastructure combined with an environment of business opportunity has attracted growing numbers of investors, business owners and aspiring entrepreneurs to explore Malta. Over the last few years, the Mediterranean nation has enjoyed tremendous growth and has become a world-class hub for entrepreneurism, trade and SME development. SME Advisor was honoured to meet Dr. Christian Cardona, Minister of Economy, Investment and Small Business, who shed light on the fundamental areas surrounding the macro-economic development of Malta.

From an economic perspective what are the challenges and opportunities facing Malta today? When compared to other European Union member states, the Maltese economy is doing very well indeed. According to the Spring 2015 European Economic Forecast, Malta’s real GDP growth stood at 4 per cent year-onyear in the last quarter of 2014, the highest rate of growth since 2010. After reaching 3.5 per cent for the whole year 2014, the Commission forecasts 3.6 per cent in 2015. Malta and Ireland (also 3.6 per cent) are expected to be the fastest growing economies in the Euro zone, followed by Luxembourg (3.4 per

cent) and Slovakia (3.0 per cent). The European Commission commented that “job creation and the unemployment rate are projected to out-perform Euro-area peers”. It also stated that “employment growth surprised positively”. The European Commission forecasts that Malta’s unemployment rate in 2015 will be 5.9 per cent. When compared with the other Euro zone countries, this places Malta amongst the top performers, with Germany (4.6 per cent), Luxembourg (5.7 per cent) and Austria (5.8 per cent). In terms of success in keeping unemployment down, Malta has no peer in Southern Europe. Compare its

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COUNTRY FOCUS

Dr. Christian Cardona, Minister of Economy, Investment and Small Business

5.9 per cent to Greece’s 25.6 per cent, Spain’s 22.4 per cent, Cyprus’ 16.2 per cent, Portugal’s 13.4 per cent, Italy’s 12.4 per cent and France’s 10.3 per cent. It is also expected to do well when compared to more northern member states, such as Slovakia (12.1 per cent), Lithuania (9.9 per cent), Latvia (10.4 per cent), Ireland (9.6 per cent) and Belgium (8.4 per cent). All this, it must be underscored, is being achieved within the context of a further decline in the budget deficit. The promotion of Foreign Direct Investment, its attraction to Malta and all that is needed to keep it here, is a key component to my portfolio. This is what Malta Enterprise is responsible

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for, what it endeavours to do so as cost effectively as possible and what it is, in fact, succeeding in doing. Its success is due to the country’s pro-active approach. We do not wait for investors to knock on our door. We target specific potential foreign investors that are, for a variety of specific reasons, likely to consider a presence in Malta, and knock on their door. Also, we look beyond Europe, whilst leveraging the advantages of European Union membership, we work hard to diversify the sources of foreign investment. Malta’s economy is expected to continue to perform positively in the next two years and in some areas even

better than the EU average, according to the latest economic forecasts published in Brussels. What sectors will be the key drivers of this growth? What is Malta’s model to build the competitiveness of the economy and who would be its competitors in this sense? Standard and Poor’s revised its outlook on Malta to positive from stable while maintaining the BBB+/A-2 rating. The agency said it expected the economy to grow by close to three per cent annually between 2015 and 2018, outpacing the Eurozone as a whole. Economic growth is attributed to investments in the energy sector, including the interconnector and the building of a liquefied natural gas terminal and power station. Economic diversification after 2016 into information and communication technology and medical tourism, could boost investment. Growth is also expected to be fuelled by domestic demand on the back of stronger private consumption as a result of utility tariff cuts. Consumption trends are being supported by rising real wages and, more importantly, broader female participation in the labour market. Government is fully committed towards furthering Malta’s economic growth by sustaining macroeconomic stability, enhancing our competitiveness, raising potential output and putting public finances back on track, while the implementation of the respective measures will continue to unfold. From a macro-economic perspective, the main drivers of growth are expected to be investment; supported by a number of large scale projects mainly in the energy, health and educational

COUNTRY FOCUS

sectors, and private consumption; on the back of increasing disposable income and continued positive developments in the labour market. We are aware that there is a lot of competition out there. However, we should never forget the reasons why Malta is the place to do business. We have a pro-enterprise culture, a sound legal system, we are a reputable location and regulation is robust but there is flexibility too. Political consensus on enterprise adds to business confidence. We have the English language and our communications are first class. This is a safe society with excellent health and education facilities. And, of course, we don’t stand still. We are investing for the future, developing an energy hub, promoting a University incubator to turn ideas into reality, and bringing in new talent through the individual investor programme. When you consider the new hospital being planned by St Barts in Gozo or the new American University in the south you get a taste of our ambition. The old shipyards are being developed. There are plans to turn White Rocks into a by-word for luxury, six star hotels are on the horizon, and more airlines as well as cruise liners are coming here. We have been working hard towards a strategy of diversification and tapping into markets outside of the European Union. This should be a strategy that other EU member states follow as well so that besides competing with each other in the internal market we should focus our energies to competing with the external market. Malta has been working at attracting FDI from outside of the EU and we have also been assisting business to start trading in other continents such as Africa and Asia. What makes Malta attractive as a place to do business? Malta’s business-friendly and economically stable environment remains conducive towards doing business particularly thanks to its competitive cost structure with relatively low social and labour

GDP growth forecast in 2015 MALTA

3.6% IRELAND

3.6% LUXEMBOURG

3.4% SLOVAKIA

costs, connectivity - including online (which ranks among the best on a global level) - and the availability of an attractive incentives package. The latter includes assistance to encourage further investment, access to finance, assistance towards training of the workforce, as well as other schemes to encourage R&D, innovation and competitiveness. Malta’s highly-skilled and English-speaking workforce is also quick to adapt in order to overcome the challenges it faces and take up the new opportunities being created, thus enabling companies to have business success. We also provide a business friendly climate where an entrepreneur has easy access not just to services related to industry but also to the decision maker. Here even the minister is just a phone call away! In fact, we know many investors by name, they come over, we discuss and this facilitates the way we

can meet their demands to help them set up shop here in Malta. I think that something else, which may appear peripheral but is not, is the general lifestyle on the islands. This isn’t just a place to work in but also a place where you enjoy living and that is very important, especially for someone who has to transfer himself and his family to work. We have a very sound educational system, we have culture, entertainment, a good transportation network; all this contributes to make Malta more attractive to an investor. I think I should also spare a further word on connectivity, whether it is digital, maritime or airborne. Today Malta has very advanced digital network connectivity, one of the most advanced in Europe. When it comes to maritime and airborne connectivity, Malta is very well connected with the rest of Europe and also North Africa and the Middle East. What is your strategic vision for the country’s economy? What are the primary priorities for the ministry? Amongst the first measures taken by this government was that of fiscal consolidation. Also other measures were introduced to boost the competitiveness of industry in Malta, for example by reducing the energy tariffs, first on families and as from this year also on industry. Our strategy for the future, upon which we have already embarked, is to widen our reach by exploring new or emerging sectors, whilst consolidating those in which we are already successful. So, we are exploring new possibilities to develop further the sector of bio-technology, for example, as well as the education sector. The investment made by Barts medical school in Gozo is one such example. We are also directing our attention towards the creative industries, striving to create more quality jobs and delivering higher value added products. So, as you can see from this very sketchy picture I gave you, the investment landscape in Malta is very much alive, strong and diverse. All of

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COUNTRY FOCUS

Since the 1960s we have seen a stream of FDIs making it to our shores. There have been industries that have thrived and then phased-out in different periods; others have been consistently present.

this promises well for the future, but is also the result of a favourable climate for investment created and sustained throughout the years. Our job now is to facilitate even more those business ideas that make sense for Malta. There are a number of projects that are targeted to materialise soon and in due time we will be announcing them. But one must also note the number of expansions that we are having from industries that are already here. This is a very good sign that there is trust in the economy and willingness for companies here to continue growing and investing in their operations here. This in itself is an incentive to attract further investors towards the country. Malta’s geographical location positions it as a gateway to Europe. How has this helped Malta in terms of trade and investment? Malta’s geographical position must surely give us a competitive advantage

upon other competitors who do not share our advantageous position. There is a lot of competition out there, yet we are also aware of what our competitive advantages are. So, the best incentives are not of a fiscal nature – even though one must stress that labour costs in Malta are still relatively low compared to some of our direct competitors – but in our human resources: workers that easily adapt to the needs of industry, with a high level of education, skilled and English speaking. The geo-political aspect should not be ignored. It offers challenges and opportunities. We like to think about Malta as a bridge between Europe and other continents, particularly North Africa and the Middle East. It must be also said that the interest shown in Malta by China and the United States lately is also very encouraging. Investors in Malta know that here they will find a stable, favourable economic and political climate which will reward their industriousness. We have a long history of FDI in Malta and that experience is also an asset which we can transform to attract more foreign investment towards the country. What is your outlook for the future of the relationship between Malta and the UAE within the spheres of investment, business and trade? In March of 2014 I led a delegation to Dubai during which I was most impressed by the good working relationship I experienced at all levels, both with the private as well as the public sector. During a second visit last year we had the opportunity to keep building upon the links initiated during the trip of last March and others which preceded it. Our outlook is very positive, we have always considered the UAE to be a strategic partner, not only in the GCC but also for beyond. The rapport between the two countries has grown even stronger in recent years as investments and trade figures indicate. Malta in the European Union can offer many business opportunities

to UAE businesses as well as with regard to North Africa. Both countries have similarities in our cultures and both look forward to cooperation on mutually expedient ventures and activities. Additionally, the UAE are ranked highly for their ease of doing business. From our side, we believe that Malta’s pro-business approach augurs well for a win/win collaboration between the two countries for the future. Malta, therefore, fully intends to keep working on strengthening our bilateral relationship for the benefit of both our countries throughout 2015 and beyond. Which sectors would you like to promote in order to make Malta a more balanced economy? The Maltese economy is performing well as a result of a good combination of sound government strategy and private entrepreneurial drive. The investment landscape in Malta is very diverse, ranging from what traditionally has been known as manufacturing to digital technology and research and development. Such diversity is the result of a long history: Malta’s industrial heritage spans over a more than fifty-year period and beyond. For example, let’s take aviation services. Malta has had an aviation services industry pre-dating world war two, because of the British Air-force bases on the island. When the British forces left Malta, there was a considerable workforce ready to get integrated into the market servicing commercial aircraft. Today aviation services are a thriving industry in Malta and still growing. Since the 1960s we have seen a stream of FDIs making it to our shores. There have been industries that have thrived and then phased-out in different periods; others have been consistently present. Here I would mention highend engineering, which has been a constant source of employment and investment for at least the last fifty years or so. In general, as a country, due to the constraint of our size – where we cannot sustain economies of scale – we do not manufacture consumer goods,

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COUNTRY FOCUS

but rather components of a particular product, so most of our exports are from industry to industry. Say, we don’t manufacture a mobile set, yet we manufacture components that are then exported to be assembled in a mobile set. In the context of a diversified economy, our industrial scenario has widened considerably. Today we are exploring new possibilities in such areas as medical tourism, which is an important part of our vision for Gozo, logistics and ICT technologies. This government is working to consolidate those sectors that already have a sound presence in Malta, like engineering and pharmaceuticals, whilst trying to explore new opportunities like in bio-technology and education services. The Life Sciences Park in San Gwann, for example, will provide a lot of opportunity for the life sciences sector to grow. But there is also aviation, which is doing very well, and aviation services companies in Malta have been expanding during the last year. Successive Maltese governments have always endeavoured to diversify the economy. Soon after the Second World War, it was realised that to have your apples in one basket is not a good idea. We believe that this strategy has worked and will continue to do so. Additionally, we aim to be nimble in this regard and always update ourselves to global dynamics and change in time when advisable. As for the sectors which we would like to promote, one could mention industrial production and engineering services; Medical and Learning Tourism; the development of a logistics hub, particularly for Oil and Gas; and making Malta a hub for Energy distribution in the Mediterranean. Trade relations between the UAE and Malta have been particularly strong over the last few years. How do you see this shaping up in 2015 – 2016? We believe that trade relations will continue to grow at a steady pace for the years to come. Our trade with UAE

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is very diversified and ranges from food to chemicals including oil-based products and from pharmaceutical products to textiles and fabrics. As relations grow these and other new sectors should be on the increase. The recent setting up of the Middle East Business Council by the Chamber of Commerce is another step in this direction. Are there any specific sectors that are doing better than the others? The strong momentum exhibited by the Maltese economy during 2013 and 2014, continued during this year. As mentioned earlier, our diversity strategy has proved successful. In fact in the first six months of this year our economy has grown by 4 per cent in real terms. That compares to an average growth of 1 per cent registered in the Euro Area for the same period. This growth was due to such diversity and arose from various sectors like industrial production, Financial Services, Tourism, Maritime Services, all blending well to make such a contribution to the GDP. All sectors of the economy are growing but the biggest performer was the financial and insurance sector where an increase of almost 12 per cent was recorded. What sectors would you say have significant potential but haven’t been tapped yet? There are certain sectors that in the near future might yield us some very good news: logistics, maritime, waste management and energy. We are also encouraging smaller businesses, particularly in the realm of innovation, for example in engineering. Here we have small local companies that are setting up, using such facilities as we have in the incubation centre at Kordin, but there are also significant FDIs who will soon be major players in the Maltese industrial landscape, especially in the sector of robotics. The sector that we are excited to promote is the Energy sector, already mentioned. We are working to make

Malta a hub for gas and clean energy. We welcome interests in collaboration in this regard. Malta Enterprise has an array of incentives that assist investors in establishing themselves in our country. These range from investment aid; access to Finance; allocation of factory space and other benefits. From a macro-economic perspective, the main drivers of growth are expected to be investment; supported by a number of large scale projects mainly in the energy, health and educational sectors, and private consumption; on the back of increasing disposable income and continued positive developments in the labour market. Over the last few years, we’ve seen a lot of focus on PublicPrivate Partnerships. How critical do you think they are in fostering trade, investment and growth? Public private partnerships (PPP) are a good way of doing business. When the private sector comes up with good ideas it is right that we act upon them. And now, a stronger and more sustainable co-operative framework has been developed. Trade Malta is a good example of a PPP which was recently launched in Malta in collaboration with the Chamber of Commerce, Enterprise and Industry of Malta which is aimed specifically at fostering trade. Here, our synergies with the private sector have been devised so as to assist private enterprise in identifying new export markets, especially in the Far East. The value of this approach towards PPP initiatives was also demonstrated when we co-operated with a leading bank to introduce trade finance initiatives for local exports. Working in collaboration with the private sector is always rewarding. The combined effort of the Maltese government and the private sector will grow the economy and create more jobs. Hopefully, not just any jobs but ones of high worth. The role of the Chamber is crucial in this initiative. It has the contacts and know-how and, through its members, it

COUNTRY FOCUS

understands exactly what needs exist. We are acting on the philosophy that business knows best. The fruits of a working relationship with the private sector can also be seen in areas such as Venture Capital Malta and the IP Code initiative, which is aimed at making Malta an International IP hub. In the Trade Malta initiative, our team of experts and the ideas of the chamber are a winning double act. This is the impetus for the way we approach the internationalisation of our businesses. As a result of this initiative, Malta Enterprise is now free to focus its resources fully on what it does best -- attracting foreign direct investment. That’s not to say that it will not be collaborating closely with Trade Malta. The goal is the same for all -- to further advance the growth of Maltese businesses whilst understanding that the Government has an important enabling role in all of this. Globally, SMEs are a critical part of a country’s economy. What are key initiatives fostering their growth? Do they have sufficient access to capital? There are over 23 million SMEs across Europe representing more than 99 per cent of all European businesses. They provide two out of three of the private sector jobs and contribute to more than half of the total value-added created by businesses in the EU. SMEs are the true back-bone of the European economy being primarily responsible for wealth and economic growth, next to their key role in innovation and R&D. Given that Maltese SMEs account for 73 per cent of value added compared with 58 per cent in the EU, SMEs, especially microenterprises play a crucial role in the Maltese economy. Therefore SMEs employ a good number of people, but they are important not only for employment reasons but also for the services they provide to industry. It is within our strategy to boost their importance and to promote new areas where SMEs can flourish

and contribute to society, not just economically but also socially, as in artisanal and social enterprise. For this we are also thinking in terms of assistance particularly to invest in equipment and labour. We also have a new scheme to assist companies that want to obtain certification to improve standards especially if targeting to expand towards foreign markets. We shall soon be launching the Family Business Act which is the first legislation of its kind in Europe. Its significance to SMEs lies in the fact that around 70 per cent of Maltese SMEs are family-owned businesses. We are creating stronger links between Business First and SMEs, so that they feel that Business First belongs to them. We have expanded on the services we were giving, restructured Business First in order to be more efficient and are devising new ways in which we can make our services quicker and more accessible. Last year we also launched an Ebiz course intended to have Maltese retail outlets and businesses tap into the online shopping market, have a presence online as well as become proficient users of digital tools which can help their business become more efficient and competitive. These are just a few of the intiatives which we have been working on, that come to mind. As to financing, I do think that access to finance can cause difficulties for SMEs. On the other hand, statistics are showing that SMEs are doing quite well so even though the problem of access to finance may be affecting some SMEs, it is not an issue which is stopping growth. The government also acknowledges its role in assisting SMEs. We have been and will continued working hard to ensure that SMEs receive all the support they require from the Government. Just recently, my colleague and Parliamentary Secretary for EU Funds Ian Borg launched the SME Initiative by pledging more EU Funds for SMEs. This initiative will open up new doors for SMEs and their investments. For this purpose, the government of Malta is allocating the amount of €15 million

from its EU Structural funding. The number of SMEs to benefit from these funds is expected to be eight hundred and forty-five (845), whilst the expected investment to be leveraged by this financial instrument could go up to at least €60 million. Finally, the age of the digital revolution has seen the emergence of a new league of ‘techno-SMEs’. What strategy does Malta have in place to embrace evolving digital trends and fuel its ICT sector? We are currently concluding the infrastructural works on the Life Sciences Park and the first tenants will soon be moving in. There are exciting prospects for investment in that field. Adjacent to the Life Sciences Park we are also developing a digital hub with the intention of creating synergies between Life Sciences and digital media companies in such areas as biotechnology. We are also exploring new strategies to stimulate the creative industries; such industries not only create wealth and wellbeing but also enrich the cultural milieu of our country. The Maltese Government sees the digital economy sector as an important pillar in its objective to create economic growth. This government wants to achieve a modern and robust economy, with technology and innovative means of communication as an important catalyst for the progress of our economy and the creation of quality jobs. The Government is seeing to the strengthening of investment in infrastructure and education whilst taking all necessary measures to ensure that young people get all the opportunities to specialise in these sectors.

For an online version, please visit: http://www.smeadvisor.com/news/maltagateway-to-opportunities

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COUNTRY FOCUS

MALTA OVERVIEW

One of the worldâ&#x20AC;&#x2122;s small countries covering

316 sq.km

Over 1.3 million tourists visit the Maltese islands each year

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COUNTRY FOCUS

THE ECONOMIC LANDSCAPE Sectoral contribution to the GDP

6.9%

11%

Professional, scientific and support services

Information and communication

Real GDP Growth

+3.5% in 2014

Malta’s leading export partners Europe 37.1%

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Asia 24.1%

Africa 18.5%

13% Industry

BUSINESS ADVANTAGES OFFERED • Competitive tax reforms • Over 60 Double Taxation Agreements in force • Business Development Grants of up to €200,000 for high value-adding projects • Continued support to expand business across borders • Education and training of workforce

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Four dynamic sessions, one powerful message Can your business ride the tide of change and deliver: • Global standards of innovation and product offer? • First-class technology solutions? • High profitability that is quality-driven not price-driven? In four action-packed sessions, SME Beyond Borders will examine what it takes to stand out from the crowd and deliver exceptional results. It takes a worldwide snapshot of top performance criteria and translates them into practical strategies that your business can adopt right now.

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SME BEYOND BORDERS

SESSION 1

Digital disruption Every SME owner and director has heard about the ‘digital revolution’, but how many fully appreciate its relevance and understand its power to change and transform the capability of SMEs? Or fully realise the potential for market penetration, greater sales performance and global competitiveness? How many understand how best to use social media, or the value of the Cloud in supercharging day to day commercial delivery? This session is guaranteed to disrupt, empower and reinvent approaches to online business - it’s an unmissable Masterclass in online culture!

Paolo Privitera

CEO and Founder, Pick 1

Dave Troy is a serial entrepreneur and community activist in Baltimore, Maryland. He is currently CEO and product architect at 410 Labs, maker of the popular e-mail management tool Mailstrom.co. He is also organizer of TEDxMidAtlantic and his TED Talk (October 2014) has over 1.1 Million views.

David Troy CEO and Product Architect, 410 Labs

Patricia Pena Director of Payments and Fundraising Operations, Wikimedia Foundation

Director, Payments and Fundraising Operations, Wikimedia Foundation. At Wikimedia, Patricia created an elaborate payment structure enabling donors from all over the world to support the organisation’s mission using their preferred payment option.

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SME BEYOND BORDERS

SESSION 3

THE SME IOS - IDENTITY, OPPORTUNITY, SUSTAINABILITY

In just 50 years, Singapore has grown from relative obscurity to being the world’s third largest trading hub and one of the four Asian ‘tigers’ - the economies that lead the world in terms of innovation, technology, and distribution. A key catalyst in this journey has been a consistent commitment to SMEs, encouraged across the board by preferential trade tariffs, licensing arrangements, business finance and fast-track growth incentives. Today, Singapore is recognised as the world leader in SME development. But what are the lessons to be learned and how can they translate into stronger performance for the region’s SMEs? This session will take a detailed look at the templates adopted in Singapore and the public and private sector benefits for SMEs - as well as the high expectations in terms of delivery, quality and civic compliance…

Dan Dimmock

Principal Brand Consultant, Insignia

Marjan Faraidooni

Director, Legacy, Expo 2020

Winner of the Global Leadership Award at the World Brand Congress, Dan Dimmock is a leading international brand strategist, having worked on more than 40 key prominent brands – enabling their transformation and stronger cultural traction.

Christina Lee

Founder and MD, Global Green Economic Consulting Pte Ltd

In 2012, launched Global Green Economic Forum (GGEF) in Singapore. GGEF is an annual business conference that gathers global thought leaders from around the world to share insights and inspire actionable solutions that empower a ‘green economy’ for a sustainable future.

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SME BEYOND BORDERS

SESSION 2

BE INSPIRED This session will feature presentations from individuals who have truly conquered the SME space and whose stories break all boundaries in terms of perseverance, insight and - above all - relevance to the â&#x20AC;&#x2DC;real lifeâ&#x20AC;&#x2122; context of the SME. Each of the presenters will have something remarkable - something inspiring - to say: a dialogue that will be a catalyst for change in everyday lives and kickstart a higher level of business enterprise. This is also a powerfully interactive session, bringing delegates into close contact with key success formulas and the passionate, sparkling energies propelling them onto the world stage.

Olimpia Tabbach Mascolo

Co-Founder, Mohammed Hilal Group

In 2007 she co-founded Anfasic Dokhoon, a leading-edge brand inspired by Arabian incense. In 8 years she established the Mohamed Hilal Group network of 75 stores across the region.

Manuel Antonio Aguilar Founder and President, Cassa

Antonio Aguilar is a social entrepreneur from Guatemala who is passionate about human development at the Base of the Pyramid. He is the Founder and President of CASSA, a construction company that designs and builds sustainable social housing. He was winner of the IDEAS V competition sponsored by the Interamerican Development Bank (2015).

SESSION 4

SME Academy This session explores the unique initiative - SME Academy, which is a commitment to citizenship and real engagement with the SME community. This is an engaging profile, supercharged by the presence of Ron Kaufman, a key participant in the Skills Building Workshops.

David Troy

CEO and Product Architect, 410 Labs

Ron Kaufman

Customer Service Guru, The Service Culture

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