Jan 14, 2012

Brunei - Workshop to prepareSMEs for overseas expansion kicks off



THE Brunei Economic Development Board (BEDB) and Standard Chartered Bank (SCB) yesterday started a 15-month workshop and financial clinic to help established small and medium enterprises and startups with developing the financial skills needed to internationalise.

Held at the iCentre yesterday, the first of the series of workshops kicked off with honing the entrepreneurs' basic skill of understanding financial statements.

"This is one of the biggest challenges, that local and foreign SMEs have and this is something that many are not so savvy about, and this is one of the issues that we are trying to address at the BEDB," said Sheikh Rashid Salam, head of marketing and investment promotion at the BEDB.

The training consists of two parts: the workshop, and the financial clinic where participants are given a 15-minute one-on-one session with financial experts to talk specifically about their business.

Sheikh Rashid said the workshop and financial clinic ultimately aim to equip the participants with all the right skills.

"Our ultimate aim is called 'Promising Local Development Scheme (PLEDS)', where we want to see companies in Brunei internationalise," he said.

He added that the BEDB has seen the potential in some SMEs that have been around over the past 20 to 30 years, but which are relatively unknown elsewhere.

"We are telling them that it is time, but in building these companies, they need to be nurtured and groomed at an early stage," said Sheikh Rashid, adding that SMEs need to be equipped with the proper accounting skills and proper audited cash flows, and to set up a marketing department to help with the growth of their companies.

"We are not the experts in this, which is why we have linked up with SCB who are willing to invest their time, effort and resources, in building up these skills," he said.

Lai Pei-Si,chief executive officer of SCB, said that the course is designed for 15 months to allow participants to build the foundation for running a business.

She added that the bank would be utilising their international status to bring in foreign counterparts who could conduct the workshops and to allow participants to learn the best practices or gain advice from a foreign perspective.

"I think to go beyond the domestic market, you would first need to get the foundation of business right, and it is really about knowing a product, identify your right target market and to understand your market properly," said Lai.

She added that being financially savvy would include teaching SMEs to know how to read their profit and loss statements, and using those figures to calculate the key ratios from the statements.

"They need to know how to see the 'real health' of the business, and from the statements to see whether they are earning more than they own, and so on, and these are foundations to help you build a solid business," she said.

"We are here to try to assist in three ways; capital, competency and connectivity," said Sheikh Rashid.

He said that connectivity will be addressed through this workshop by networking during the workshop, competency will be done via the workshops and financial clinics, and with capital, that is where the banks come in to help address it.

He also revealed that the next sessions would also touch on non-financial related issues.

"We also want to touch on regulatory-related issues such as foreign trade agreements, things like Rampaian licences, labour quotas and so on," he said.

DEBBIE TOO
BANDAR SERI BEGAWAN
The Brunei Times



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