Our Malaysian friends held a farewell dinner for us last night. After the delicious beriyani and rendang, as usual we talked and discussed about the current issues. Last night’s discussion was interesting as it revolved around the ‘malay dilemma’ topic. At the moment, as you and I know, the racial tension in Malaysia is quite pronounced.
There were two camps last night. One opinion was that it is the malays’ right to be given the privileges given the fact that it is the malay land and therefore, the non-malays should not have any right to demand what is not rightfully theirs. And the success of the non-malays is seen as the result of some ‘conspiracy’ against the malays which include the policies that seem to be in favour of the non-malays or rather disfavour the malays.
Another opinion however believes that it is actually the malays themselves who are not utilising the privileges and opportunities that are given to them to their great advantage. The fact is ‘Melayu Mudah Lupa’ (Malay Forget Easily – the title of Mahathir’s book). We forget why we are given those privileges. Believing that they are our rights, we don’t value them anymore. As a result, we don’t work as hard as the non-malays (who have to survive) and the non-malays have emerged to be more successful, cleverer and wealthier.
And for this reason, we believe that there should exist a healthy competitive environment for the malays to prove that they are as good as or in fact better than the non-malays.
In Brunei, Alhamdulillah, we still live harmoniously together. Partly I believe is due to our small population and partly due to our ideology of ‘Melayu Islam Beraja’ (Malay, Islamic, Monarchy). As a result, the competition between the malay and the non-malay in Brunei is less severe or almost non-existent. This however does not mean that the Brunei malay is immune from the symptom of forgetfulness. In fact, we even take many things for granted. Take the ‘Ali Baba’ syndrome in the business sector for example. We want to be rich easily and quickly. Instead of genuinely running a business, we sell or rent out our permits and licenses to foreigners. As a result, the number of Brunei malays who have become true entrepreneurs that we can be proud is less than the ten fingers in our hands as compared to the number of business establishments (especially ‘kedai runcit’, barbershops and tailor shops).
Another example relates to the work attitude of the Brunei malays. The five-tea-break-a-day routine becomes the culture in the government sector. The attitude of ‘karang tah’ has lost the government millions of dollars in terms of productivity and even revenue-generation. As a result, the government sector, which is the first employment choice of any Brunei malay, is slow, inefficient and backward so much so that it can take weeks to send a letter within one tiny district, and months for the results of a few applications. (Come on! What is our population again?)
I totally concur with Dr. Mahathir who said “it is not race or ethnicity but the culture which determines the performance (of the people)”. So, to succeed we must change our culture. It is difficult, of course. To hope that we Bruneians will realize and change ourselves is probably a big wishful thinking.
Therefore, we have to create an environment that can change our perception of our rights of being Brunei malays, our perception of running a business and our perception of work – ‘work to live’ versus ‘live to work’ for our family and our country. We must look towards work as the true reward and take pride in our work, for without pride there may not be progress. This kind of environment may involve monetary reward but the reward should not outweigh the satisfaction of the achievement being made.
We have been blessed with oil and gas. We forget that this will not last forever. While the current generation probably cannot change, the next generation needs to change. We have to ensure that the next generation understands their purpose in life (which sadly is not understood by the current one). It is not an easy task but it has to be done.
Salaam.
Showing posts with label entrepreneur. Show all posts
Showing posts with label entrepreneur. Show all posts
Monday, 17 November 2008
Wednesday, 27 August 2008
Friday, 18 April 2008
Rejuvenate Brunei's GLCs
What interests me the most, while browsing the World Trade Policy Review of Brunei, is this bit of information:
(Per cent of GDP, unless otherwise indicated)
Saving and investment 2002 2003 2004 2005 2006
Gross national savings 47.2 48.6 51.4 59.1 62.4
Gross domestic investment 21.3 15.1 13.5 11.4 10.4
Savings-investment gap 26.0 33.6 37.9 47.8 52.1
(sorry, I'm no good in pasting the Table. For the full set click here and I refer to Table 1.2)
The saving-investment gap is huge! And the gap is because there is too much saving and too little investment (which isn’t usually the case in many countries). Now, if you’re an economics student and using Year 1 Macroeconomics, you will know that this excessive saving means there is a capital account surplus which could lead to a glut in the economy which eventually could lead to a recession.
Now, my question is why oh why are we acting as if we do not have enough capital to move the economy? To be specific, we are acting as if we’re having a gap that is caused by too little saving and therefore needs an external financing i.e. the FDI. And I have the impression that we seem to be helpless without the FDI. Now, I’m not saying that FDI is not important and I’m sure I don’t have to enumerate the reasons why we need an FDI. What I’m trying to say is that, given the availability of excessive domestic capital, it is high time that Brunei should also place the importance of the domestic investment in the effort to diversify the economy.
Despite the excessive capital however, the private sector in Brunei is weak, both in terms of resources and expertise, to undertake any major domestic investment. Therefore it is imperative (and equally inevitable) for the government sector to assist the private sector development, in particular, to do the investing.
To tell you the truth, at the beginning I wanted to propose the establishments of government-linked companies (GLCs) the likes of Singapore, but then I remembered, we DO have GLCs! Unfortunately for some reasons our GLCs are very quiet (if not, I wouldn’t have forgotten hehe) and do not appear to be spearheading the investment efforts.
I’m sure by now, many of you will be saying that Brunei’s GLCs won’t work because their managers and Board of Directors are civil servants who lack business acumen, risk-averse, slow in decision-making and their investments mainly political as opposed to commercially motivated. TRUE! And for this precise reason, I believe we need to rejuvenate our GLCs by removing (or perhaps reducing) the number of civil servants in the companies. Let’s put true entrepreneurs and real managers. If we can’t find locals then for the love of Brunei, hire (the best money can buy) foreign experts! Because the lack of competent local human resource to drive the economy is our main problem in the first place (which is nothing to be ashamed of, given our small population and the current nature of our economy, however this does not mean that Brunei’s HR should forever be at the current state) and I don't see anything wrong in hiring foreign talents. Nevertheless, we should be using Singapore as an example. Singapore’s phenomenal economic growth is, after all, the result of its strategy of ‘state capitalism’.
Let’s face the fact, we are not exactly a foreign investment magnet and on its own, our private sector is too weak and too small to drive the economy. At the same time, our oil is depleting. Therefore, I believe the inevitable solution is for the government, through its GLCs, to assume a proactive role both in the entrepreneurial development and the economic diversification effort. For the GLCs to assume this role efficiently, they need to have adequate resources and most importantly become proper business entities which mean risk-taking and being competitive. It is time for the government to let go its domineering role in the GLCs’s decision-makings and to also take the risk. Because if it doesn’t, then the only alternative for Brunei is for us to pray (very hard) for oil to never runs dry.
Salaam.
(Per cent of GDP, unless otherwise indicated)
Saving and investment 2002 2003 2004 2005 2006
Gross national savings 47.2 48.6 51.4 59.1 62.4
Gross domestic investment 21.3 15.1 13.5 11.4 10.4
Savings-investment gap 26.0 33.6 37.9 47.8 52.1
(sorry, I'm no good in pasting the Table. For the full set click here and I refer to Table 1.2)
The saving-investment gap is huge! And the gap is because there is too much saving and too little investment (which isn’t usually the case in many countries). Now, if you’re an economics student and using Year 1 Macroeconomics, you will know that this excessive saving means there is a capital account surplus which could lead to a glut in the economy which eventually could lead to a recession.
Now, my question is why oh why are we acting as if we do not have enough capital to move the economy? To be specific, we are acting as if we’re having a gap that is caused by too little saving and therefore needs an external financing i.e. the FDI. And I have the impression that we seem to be helpless without the FDI. Now, I’m not saying that FDI is not important and I’m sure I don’t have to enumerate the reasons why we need an FDI. What I’m trying to say is that, given the availability of excessive domestic capital, it is high time that Brunei should also place the importance of the domestic investment in the effort to diversify the economy.
Despite the excessive capital however, the private sector in Brunei is weak, both in terms of resources and expertise, to undertake any major domestic investment. Therefore it is imperative (and equally inevitable) for the government sector to assist the private sector development, in particular, to do the investing.
To tell you the truth, at the beginning I wanted to propose the establishments of government-linked companies (GLCs) the likes of Singapore, but then I remembered, we DO have GLCs! Unfortunately for some reasons our GLCs are very quiet (if not, I wouldn’t have forgotten hehe) and do not appear to be spearheading the investment efforts.
I’m sure by now, many of you will be saying that Brunei’s GLCs won’t work because their managers and Board of Directors are civil servants who lack business acumen, risk-averse, slow in decision-making and their investments mainly political as opposed to commercially motivated. TRUE! And for this precise reason, I believe we need to rejuvenate our GLCs by removing (or perhaps reducing) the number of civil servants in the companies. Let’s put true entrepreneurs and real managers. If we can’t find locals then for the love of Brunei, hire (the best money can buy) foreign experts! Because the lack of competent local human resource to drive the economy is our main problem in the first place (which is nothing to be ashamed of, given our small population and the current nature of our economy, however this does not mean that Brunei’s HR should forever be at the current state) and I don't see anything wrong in hiring foreign talents. Nevertheless, we should be using Singapore as an example. Singapore’s phenomenal economic growth is, after all, the result of its strategy of ‘state capitalism’.
Let’s face the fact, we are not exactly a foreign investment magnet and on its own, our private sector is too weak and too small to drive the economy. At the same time, our oil is depleting. Therefore, I believe the inevitable solution is for the government, through its GLCs, to assume a proactive role both in the entrepreneurial development and the economic diversification effort. For the GLCs to assume this role efficiently, they need to have adequate resources and most importantly become proper business entities which mean risk-taking and being competitive. It is time for the government to let go its domineering role in the GLCs’s decision-makings and to also take the risk. Because if it doesn’t, then the only alternative for Brunei is for us to pray (very hard) for oil to never runs dry.
Salaam.
Friday, 28 March 2008
SME news
I guess I'm not alone in my view:
For the full news, click here. Meanwhile,
And for the above reason, I pray with all my heart that THIS is not another announcement.
Salaam.
"Brunei Darussalam needs to provide special funding to create an
environment where technology-based business ideas can flourish.
Technopreneurs said that it is difficult for them to expand as fast as they
wanted to due to lack of funding. They added that in Brunei if one does not have
the money to do it, then there is little chance of succeeding.
In the words of Tengku Farith Rithauddeen, the Group CEO and Co-Founder
of SKALI, "There should not be any fear of failing if we want to create
innovative products or services."
For the full news, click here. Meanwhile,
"Dato Paduka Timothy Ong also quoted His Royal Highness as saying in the same
interview that diversifying the economy is a lot more than making
announcements". (Click here)
And for the above reason, I pray with all my heart that THIS is not another announcement.
Salaam.
Sunday, 23 March 2008
The Dilemma of SME Part 2
Other issues faced by the SMEs in Brunei are the small market size and the lack of production incentives. With our population of about 380,000 really does not make Brunei an attractive place for any production or businesses. The small market size is further aggravated by cheap competition from import and high local cost.
Of course, somebody would reply that Brunei's SMEs should not limit themselves to the domestic demand and therefore should explore the regional and even the world market. True. But in truth that is easier said than done. Heeks (1998) in his paper (click here) pointed a number of related problems. First, he pointed that Brunei is an island of wealth in the sea of local poverty, at least in Borneo island itself. But it is also true in the context of ASEAN. Brunei is the second wealthiest country after Singapore (measured by the GDP per capita) which is followed by Malaysia and then Thailand. The remaining ASEAN countries are all earning less than US$1000 per capita – they hardly can become our potential markets! Second, where regional markets exist, someone has got there first, producing high quality products at low cost, thus presenting entry barriers to new-comers especially, one that lacks competitiveness.
Now, I’m not trying to be negative but sometimes we have to be realistic. I believe, in order for our local (and weak) SMEs to take their chance in the regional market, let alone the global market, they need assistance. For example, they need to know just what types of products to produce (for e.g. products that have high import growth rates in the global market) given their capabilities. And then of course they will also need (continuous) help in the area of capacity building to increase the products’ competitiveness especially in terms of the quality. Now, my question is, have we got these in place?
OK before we go further into the discussion of providing supports for export-production, let’s first look at the supports for local production. What incentives are we giving to the local producers? You would probably be thinking of the recently reduced corporate tax. Is that enough? The corporate tax, first of all, is not payable by sole proprietorships, which makes up a large chunk of our private sector. And then there is the ‘pioneer status’ scheme, but then again does it apply to a large number of our local SMEs? Correct me if I’m wrong but I think both the corporate tax and the pioneer status scheme are more directed towards the attraction of foreign investors (which I am in support of!). Now, my question again, what then are the incentives we are giving to the local small and medium enterprises? Our SMEs don’t even have complete access to crucial information such as market demand, input costs, availability of sources of production so on and so forth! And so how do we expect our local SMEs to go abroad and compete when they are not even developed domestically.
Now, back to the issue of the small domestic market. How do we then overcome this problem? At the top of my head, we can do this in 2 ways. One, through the natural population increase, which would take AGES! And two, through migration. OK, maybe in our case, not migration per se but we need to find ways to attract foreigners to come and spend in the country. How? One, we need to increase the number of tourists coming to Brunei. The tourism department, from the looks of it, is putting a lot of effort into this. [It’s ashamed really, that the apparent lack of policy co-ordination among other departments somehow weakens the effort (perhaps another post on this one)]. Two, we can attract foreigners who have high purchasing power to come and stay in Brunei. Brunei, being a tax haven has already 'the' appealing factor for anyone to come and live in the country :). However, there is a larger policy implication which is related to another policy taboo – land and property foreign ownership. Now, I’m no expert on this but personally I don’t really see the harm in allowing foreigners, who can make ‘economic contributions’ to purchase properties for the sole purpose of occupation (see for example how Singapore is doing it). Just imagine the spin-off effects of this policy! We can expect a boom in the housing sector and the construction industry, and then of course, the increase in the demand for ALL goods and services which will have the desired direct effect on our local SMEs. Oh I can picture a shift in the aggregate demand for Brunei! (And only then we can seriously talk about providing world-class services be it in education, health etc..)
Oh dear, there’s so much to think of! I do hope I am NOT the only one thinking about this. And while thinking is good, but please for the love of Brunei, DO something about it. I will probably write more on this topic.
Salaam.
Of course, somebody would reply that Brunei's SMEs should not limit themselves to the domestic demand and therefore should explore the regional and even the world market. True. But in truth that is easier said than done. Heeks (1998) in his paper (click here) pointed a number of related problems. First, he pointed that Brunei is an island of wealth in the sea of local poverty, at least in Borneo island itself. But it is also true in the context of ASEAN. Brunei is the second wealthiest country after Singapore (measured by the GDP per capita) which is followed by Malaysia and then Thailand. The remaining ASEAN countries are all earning less than US$1000 per capita – they hardly can become our potential markets! Second, where regional markets exist, someone has got there first, producing high quality products at low cost, thus presenting entry barriers to new-comers especially, one that lacks competitiveness.
Now, I’m not trying to be negative but sometimes we have to be realistic. I believe, in order for our local (and weak) SMEs to take their chance in the regional market, let alone the global market, they need assistance. For example, they need to know just what types of products to produce (for e.g. products that have high import growth rates in the global market) given their capabilities. And then of course they will also need (continuous) help in the area of capacity building to increase the products’ competitiveness especially in terms of the quality. Now, my question is, have we got these in place?
OK before we go further into the discussion of providing supports for export-production, let’s first look at the supports for local production. What incentives are we giving to the local producers? You would probably be thinking of the recently reduced corporate tax. Is that enough? The corporate tax, first of all, is not payable by sole proprietorships, which makes up a large chunk of our private sector. And then there is the ‘pioneer status’ scheme, but then again does it apply to a large number of our local SMEs? Correct me if I’m wrong but I think both the corporate tax and the pioneer status scheme are more directed towards the attraction of foreign investors (which I am in support of!). Now, my question again, what then are the incentives we are giving to the local small and medium enterprises? Our SMEs don’t even have complete access to crucial information such as market demand, input costs, availability of sources of production so on and so forth! And so how do we expect our local SMEs to go abroad and compete when they are not even developed domestically.
Now, back to the issue of the small domestic market. How do we then overcome this problem? At the top of my head, we can do this in 2 ways. One, through the natural population increase, which would take AGES! And two, through migration. OK, maybe in our case, not migration per se but we need to find ways to attract foreigners to come and spend in the country. How? One, we need to increase the number of tourists coming to Brunei. The tourism department, from the looks of it, is putting a lot of effort into this. [It’s ashamed really, that the apparent lack of policy co-ordination among other departments somehow weakens the effort (perhaps another post on this one)]. Two, we can attract foreigners who have high purchasing power to come and stay in Brunei. Brunei, being a tax haven has already 'the' appealing factor for anyone to come and live in the country :). However, there is a larger policy implication which is related to another policy taboo – land and property foreign ownership. Now, I’m no expert on this but personally I don’t really see the harm in allowing foreigners, who can make ‘economic contributions’ to purchase properties for the sole purpose of occupation (see for example how Singapore is doing it). Just imagine the spin-off effects of this policy! We can expect a boom in the housing sector and the construction industry, and then of course, the increase in the demand for ALL goods and services which will have the desired direct effect on our local SMEs. Oh I can picture a shift in the aggregate demand for Brunei! (And only then we can seriously talk about providing world-class services be it in education, health etc..)
Oh dear, there’s so much to think of! I do hope I am NOT the only one thinking about this. And while thinking is good, but please for the love of Brunei, DO something about it. I will probably write more on this topic.
Salaam.
Wednesday, 19 March 2008
New SME Financing
When I read today's news (see here and here) I thought, oohh that was fast! (i.e. the response to my previous post) haha.
It was indeed a welcoming development made by the Standard Chartered Bank to offer a collateral-free Business Installment Loan. I don't know what the interest rate is, but I suspect it would probably be as high as the risk involved. SCB is, after all a commercial bank. The detail of the financing scheme can be found here.
However, the scheme is not for start-ups. It is meant for businesses which have been up and running for at least 3 years. Therefore, I hope our local businesses will only participate when it is absolutely necessary.
The issue of start-up financing, thus still remains.
Salaam.
It was indeed a welcoming development made by the Standard Chartered Bank to offer a collateral-free Business Installment Loan. I don't know what the interest rate is, but I suspect it would probably be as high as the risk involved. SCB is, after all a commercial bank. The detail of the financing scheme can be found here.
However, the scheme is not for start-ups. It is meant for businesses which have been up and running for at least 3 years. Therefore, I hope our local businesses will only participate when it is absolutely necessary.
The issue of start-up financing, thus still remains.
Salaam.
Sunday, 16 March 2008
The Dilemma of SME Part 1
I’ve wanted to write something about SMEs in Brunei because this is another topic which I feel has not been properly addressed and where (again) policies and solutions offered are not coordinated.
I agree that the government has been very supportive in the development of SMEs but I am not convinced with the effectiveness of the given supports. Let’s go back to 30 years ago when Brunei started a SME Loan scheme for Malay citizens in the mid 1970s, known as the EDB scheme which unfortunately did not result in many success stories.
The failure of the EDB scheme to create many SMEs is mainly because it wasn’t participated by the intended recipients. (More than 65% of the loan went to non-entrepreneurs for buildings of houses which were mainly for rentals – not exactly the type of business we are looking for). Why? This is mainly because the EDB required collateral which could not be provided by any would-be genuine entrepreneur who didn’t have the means to do so. And as a result the only group that was able to apply for the loan was mostly those in the government sector, who were NOT trained to be risk-takers and to become genuine entrepreneurs.
Fast forward to today. The EDB scheme is now being replaced by a few financing schemes offered by the Ministry of Industry and Primary Resources through the Brunei Islamic Bank. While the new schemes may no longer be utilized to build rental houses, yet they pose the same constraint (or perhaps even more strict) to Brunei start-ups – the need to provide some forms of collateral in order to participate in the schemes. Well, of course I don’t expect for the money to be distributed freely to anyone who claims to be an entrepreneur but I am also positive that there are Bruneians out there who really have some viable business ideas but do not have the means to meet the banks’ strict loan scrutiny. So, where can they go for help?
This issue of the lack of availability of credits to genuine entrepreneurs and/or if you think in the reverse order, the availability of credits to non-genuine entrepreneurs to me is very much related to the issue of the wide-emerging of ‘Ali-Baba’ businesses. It works in 2 ways. On the one hand, those who are able to obtain the loans, who are mostly government servants, create businesses under the names of their wives/husbands/children while the business itself is run by some foreigners. On the other hand, those who are not able to obtain any loan seek some foreign external investors, and this coupled with the lack of proper business direction and experience, eventually results in the formation of ‘Ali Baba’ firms. This partly explains why despite the growing number of SMEs over the years, the number of success stories is paltry.
Of course the issue of ‘Ali Baba’ businesses is, to a large extent, attributable to the attitude (laziness) and the mentality of our own people (easy money). I personally feel the government’s effort in developing ‘local rakyat melayu Brunei’ to be the champions in the business sector has backfired. Despite all local privileges and the policy of local contents in almost all government projects, the locals still have not changed their position. It makes me wonder whether the very reason Brunei locals have not developed in the business sector compared to non-locals, is due to the over-protectiveness of our policies (all sorts of policies! e.g. land policy, local content, public sector jobs etc.) towards the Brunei locals. How? Those who are excluded from such ‘privilege’ policies have to work for their survivals. To most of them, forming a business IS an economic necessity. This however is not the case for the local Brunei, who have always been pampered and secured with high-paying jobs. And at the same time, those non-locals who see some business opportunities but are not in the position of setting up their own proper businesses seek the locals who are more than willing to lend their names in exchange for some business equity.
This is the real dilemma and poses a challenge to policy formulation. On the one hand, we want to help the locals. On the other hand, how can we ensure that the locals will not abuse any new given support? Nevertheless, Brunei can no longer wait and see and hope for the best. Brunei is not as it was 30 years ago. Brunei NEEDS to diversify its economy and strengthen its private sector. And the private sector needs help.
Anyway, going back to the issue of obtaining start-up credits, I personally think that Brunei should explore the idea of ‘angel investors’ or the provision of ‘seed money’ to new entrepreneurs who have no means to adhere to the collateral requirements of the existing financing schemes. Of course the risk is high but as the saying goes, No Pain No Gain! And if the government is not ready to take the risk, then how can we expect the people to take similar risk?
And at the same time, the issue of ‘Ali Baba’ businesses need to be tacked ASAP. It is simply an economic disease that needs a remedy. I must admit, it is not an easy task as it involves the changing of attitude and mindset and also requires a strong coordination from different government departments. However, as long as the mentality of ‘easy money’ exists among the locals, no matter how sophisticated the supports to local SMEs are, Brunei’s hope to create local businesses may just remain a non-achievable long-term economic goal.
I will write more on SME-related issues. In the meantime, I welcome views from everyone.
Salaam.
I agree that the government has been very supportive in the development of SMEs but I am not convinced with the effectiveness of the given supports. Let’s go back to 30 years ago when Brunei started a SME Loan scheme for Malay citizens in the mid 1970s, known as the EDB scheme which unfortunately did not result in many success stories.
The failure of the EDB scheme to create many SMEs is mainly because it wasn’t participated by the intended recipients. (More than 65% of the loan went to non-entrepreneurs for buildings of houses which were mainly for rentals – not exactly the type of business we are looking for). Why? This is mainly because the EDB required collateral which could not be provided by any would-be genuine entrepreneur who didn’t have the means to do so. And as a result the only group that was able to apply for the loan was mostly those in the government sector, who were NOT trained to be risk-takers and to become genuine entrepreneurs.
Fast forward to today. The EDB scheme is now being replaced by a few financing schemes offered by the Ministry of Industry and Primary Resources through the Brunei Islamic Bank. While the new schemes may no longer be utilized to build rental houses, yet they pose the same constraint (or perhaps even more strict) to Brunei start-ups – the need to provide some forms of collateral in order to participate in the schemes. Well, of course I don’t expect for the money to be distributed freely to anyone who claims to be an entrepreneur but I am also positive that there are Bruneians out there who really have some viable business ideas but do not have the means to meet the banks’ strict loan scrutiny. So, where can they go for help?
This issue of the lack of availability of credits to genuine entrepreneurs and/or if you think in the reverse order, the availability of credits to non-genuine entrepreneurs to me is very much related to the issue of the wide-emerging of ‘Ali-Baba’ businesses. It works in 2 ways. On the one hand, those who are able to obtain the loans, who are mostly government servants, create businesses under the names of their wives/husbands/children while the business itself is run by some foreigners. On the other hand, those who are not able to obtain any loan seek some foreign external investors, and this coupled with the lack of proper business direction and experience, eventually results in the formation of ‘Ali Baba’ firms. This partly explains why despite the growing number of SMEs over the years, the number of success stories is paltry.
Of course the issue of ‘Ali Baba’ businesses is, to a large extent, attributable to the attitude (laziness) and the mentality of our own people (easy money). I personally feel the government’s effort in developing ‘local rakyat melayu Brunei’ to be the champions in the business sector has backfired. Despite all local privileges and the policy of local contents in almost all government projects, the locals still have not changed their position. It makes me wonder whether the very reason Brunei locals have not developed in the business sector compared to non-locals, is due to the over-protectiveness of our policies (all sorts of policies! e.g. land policy, local content, public sector jobs etc.) towards the Brunei locals. How? Those who are excluded from such ‘privilege’ policies have to work for their survivals. To most of them, forming a business IS an economic necessity. This however is not the case for the local Brunei, who have always been pampered and secured with high-paying jobs. And at the same time, those non-locals who see some business opportunities but are not in the position of setting up their own proper businesses seek the locals who are more than willing to lend their names in exchange for some business equity.
This is the real dilemma and poses a challenge to policy formulation. On the one hand, we want to help the locals. On the other hand, how can we ensure that the locals will not abuse any new given support? Nevertheless, Brunei can no longer wait and see and hope for the best. Brunei is not as it was 30 years ago. Brunei NEEDS to diversify its economy and strengthen its private sector. And the private sector needs help.
Anyway, going back to the issue of obtaining start-up credits, I personally think that Brunei should explore the idea of ‘angel investors’ or the provision of ‘seed money’ to new entrepreneurs who have no means to adhere to the collateral requirements of the existing financing schemes. Of course the risk is high but as the saying goes, No Pain No Gain! And if the government is not ready to take the risk, then how can we expect the people to take similar risk?
And at the same time, the issue of ‘Ali Baba’ businesses need to be tacked ASAP. It is simply an economic disease that needs a remedy. I must admit, it is not an easy task as it involves the changing of attitude and mindset and also requires a strong coordination from different government departments. However, as long as the mentality of ‘easy money’ exists among the locals, no matter how sophisticated the supports to local SMEs are, Brunei’s hope to create local businesses may just remain a non-achievable long-term economic goal.
I will write more on SME-related issues. In the meantime, I welcome views from everyone.
Salaam.
Friday, 29 February 2008
ASEANPreneurs Youth Leaders Exchange
I thought I'd post this now. Got an email from the University of Singapore this morning asking to help publicise their event which is opened to ALL University Undergrads of ASEAN Nationality.
So dear UBDians/ITBians, this is a very good opportunity for you to show the world what we are made of ! :) and of course for you to network, to make new friends etc.
I used to participate in events like this when I was at UBD (that was AGES ago! when I spent about 2 months living and studying at the NUS, participating in a student exchange programme) and yes, I made many friends, learnt new things, exchanged a lot of ideas and enjoyed every minute of it!
So, now is your turn...Enjoy!
The deadline is actually on 2nd March 2008 but applications can still be accepted until 28th March. Good Luck!
(To Janaki, thanks for visiting my blogsite and many thanks for the invite! But I don't think I'm qualified hehe :) All the best and good luck!)
Anyway, here's some info:
We're from National University of Singapore and would like to call for applications for the inaugural ASEANpreneurs Youth Leaders Exchange 2008. This will be held in Singapore from 15-20 May 2008.
So dear UBDians/ITBians, this is a very good opportunity for you to show the world what we are made of ! :) and of course for you to network, to make new friends etc.
I used to participate in events like this when I was at UBD (that was AGES ago! when I spent about 2 months living and studying at the NUS, participating in a student exchange programme) and yes, I made many friends, learnt new things, exchanged a lot of ideas and enjoyed every minute of it!
So, now is your turn...Enjoy!
The deadline is actually on 2nd March 2008 but applications can still be accepted until 28th March. Good Luck!
(To Janaki, thanks for visiting my blogsite and many thanks for the invite! But I don't think I'm qualified hehe :) All the best and good luck!)
Anyway, here's some info:
We're from National University of Singapore and would like to call for applications for the inaugural ASEANpreneurs Youth Leaders Exchange 2008. This will be held in Singapore from 15-20 May 2008.
The National University of Singapore (NUS) Entrepreneurship Society (NES) has founded an online student network called ASEANpreneurs to promote entrepreneurship in the ASEAN region. Below is a synopsis of who they are and the flagship programme that they will be organizing, the ASEANpreneurs Youth Leaders Exchange 2008.
ASEANpreneurs Youth Leaders NetworkThe ASEANpreneurs Youth Leaders Network (AYLN) is a student organization dedicated to promoting entrepreneurship in the ASEAN region. It serves as a platform for budding student entrepreneurs from ASEAN countries to network, share ideas and knowledge, and to collaborate and learn from each other. Some of the network's activities include organizing the flagship Leaders Exchange and the upcoming Conference, dissemination of entrepreneurship information, news and initiatives in the form of quarterly newsletters. Membership is open to university undergrads of ASEAN nationality.
ASEANpreneurs Youth Leaders Exchange 2008The ASEANpreneurs Youth Leaders Exchange (AYLE) is a week-long exchange programme organized by ASEANpreneurs, bringing together student leaders and entrepreneurs from all ASEAN countries. Hosted in each country on a rotating basis, this event provides an opportunity for delegates to visit ASEAN countries to learn about their economic development and localized entrepreneurial culture. Some of the programme components include student paper presentations, panel discussions with prominent regional entrepreneurs, workshops, visits to successful local startups and dialogue with distinguished local leaders. Application is open to university undergrads of ASEAN nationality.To apply for this programme, please visit www.aseanpreneurs.org
So yea, hope you can do a blog post on this and encourage many Bruneians to apply and participate in the Exchange. Of course, you're invited to do so as well =)
Thank you!
Regards,
Janaki
PR Director
ASEANpreneurs
So yea, hope you can do a blog post on this and encourage many Bruneians to apply and participate in the Exchange. Of course, you're invited to do so as well =)
Thank you!
Regards,
Janaki
PR Director
ASEANpreneurs
Wednesday, 16 January 2008
Fuel Subsidy, Again.
I'm quite disappointed with the comments made by the acting Chairman of BEDB. As an economist and an entrepreneur, it is actually the least I expected from him. A few days ago he did mention that Brunei should stand up and face the economic challenges and be prepared to changes and be more adaptable to changes. Well, this is a challenge! If Bruneians can face this challenge, then let's bring the others...
First of all, he didn't seem to acknowledge that car fuel, at times when global prices are rising, is not a necessity. True, people's lives will be affected as the cost of driving a car will go up due to a reduction in subsidy and it will also affect the prices of goods. But I believe people will react by economising not only the use of their cars but also their day to day purchases down to the level of necessity. It would certainly be a different matter, if the government were to reduce the level of subsidy on electricity (but again Bruneians DO NOT economise their electricity usage).
Now, if the government were to decide to go ahead with the slashing of the fuel subsidy, the relavant government agencies should come forward to alleviate the effects on the lives of Bruneians. Firstly, this is when Price Control should be THE active policy in regulating the prices of necessities. Price ceilings of goods which are deemed staple MUST be worked out NOW so that sellers do not take advantage of the increasing fuel price.
Secondly, the Ministry of Education and/or the Ministry of Communication for instance, should come forward in helping parents transporting their children to school. School buses have to be provided and preferably privatised. This will not only directly help the people but also can help boost the transportation industry.
According to the Minister of Energy, about B$500 million was spent on the fuel subsidy in 2005. Again, that's A LOT! The money could be spent on other productive activities including in providing the resources for the above-mentioned activities. But the one use that can directly help the weak private sector and perhaps nurture new entrepreneurial ideas is to use it as SEED MONEY. Instead of spending millions making Bruneians lazy, why not use a fraction of the money making lots of Brunei entrepreneurs. Now BEDB could play a big role here as the agency responsible in giving seed money to the potential entrepreneurs.
Anyway, what I'm trying to say is that in 'every challenge there lies an opportunity' as there must always be 'a blessing in disguise'. This should be the slogan to any good entrepreneur. And I also wonder why should Bruneians be insulated from the effects of the global forces as I think it is unhealthy to the development of a resilient economy and a nation as a whole. It is high time, Bruneians learn to think rationally and start prioritising their lives. Not only that, I also think that a shock is probably what this sleepy country needs to revitalise its weak economy.
Salaam.
First of all, he didn't seem to acknowledge that car fuel, at times when global prices are rising, is not a necessity. True, people's lives will be affected as the cost of driving a car will go up due to a reduction in subsidy and it will also affect the prices of goods. But I believe people will react by economising not only the use of their cars but also their day to day purchases down to the level of necessity. It would certainly be a different matter, if the government were to reduce the level of subsidy on electricity (but again Bruneians DO NOT economise their electricity usage).
Now, if the government were to decide to go ahead with the slashing of the fuel subsidy, the relavant government agencies should come forward to alleviate the effects on the lives of Bruneians. Firstly, this is when Price Control should be THE active policy in regulating the prices of necessities. Price ceilings of goods which are deemed staple MUST be worked out NOW so that sellers do not take advantage of the increasing fuel price.
Secondly, the Ministry of Education and/or the Ministry of Communication for instance, should come forward in helping parents transporting their children to school. School buses have to be provided and preferably privatised. This will not only directly help the people but also can help boost the transportation industry.
According to the Minister of Energy, about B$500 million was spent on the fuel subsidy in 2005. Again, that's A LOT! The money could be spent on other productive activities including in providing the resources for the above-mentioned activities. But the one use that can directly help the weak private sector and perhaps nurture new entrepreneurial ideas is to use it as SEED MONEY. Instead of spending millions making Bruneians lazy, why not use a fraction of the money making lots of Brunei entrepreneurs. Now BEDB could play a big role here as the agency responsible in giving seed money to the potential entrepreneurs.
Anyway, what I'm trying to say is that in 'every challenge there lies an opportunity' as there must always be 'a blessing in disguise'. This should be the slogan to any good entrepreneur. And I also wonder why should Bruneians be insulated from the effects of the global forces as I think it is unhealthy to the development of a resilient economy and a nation as a whole. It is high time, Bruneians learn to think rationally and start prioritising their lives. Not only that, I also think that a shock is probably what this sleepy country needs to revitalise its weak economy.
Salaam.
"The basic difference between an ordinary man and a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse." (Carlos Casteneda)
P.S. If you read the news, the US economy is heading more and more towards a recession. A gloomy sign to the global economy. Now, that's a BIG challenge!
Sunday, 28 October 2007
13 Ways to Earn Extra Money
Has anyone in Brunei tried any of these-and succeed? Would love to hear some success stories. Anyway, many of them are pretty do-able..for example no. 4..I would love to get people come in on a regular basis to clean my house (rather than having full-time amahs- who, in our experience, have caused a lot of headaches and heartaches to some) and what about no. 13, I am sure that the hostels at the UBD and/or ITB are not enough to accomodate students who need places to live. And no. 8? Why should it be an Indian to cut-off the grass? Are the Brunei boys too weak to hold and operate the grass-cutters?
If you know any local who is offering services such as house-cleaning, grass-cutting, babysitting, please let me know...I would definitely be engaging them and will put good word of mouth to other friends and families (provided the services are satisfactory!)...Anyway, enjoy the article..you never know, you are on your way to become a self-made towkeh...
By Jennifer Howze
Everybody needs a quick infusion of cash from time to time. These ideas bring in money fast, and many can also be done at flexible times, so it's easier to arrange child care with a friend or family member for free.
1. Have a garage sale. By using a few easy tricks, like posting fliers at grocery stores and Laundromats, making signs that can be seen from nearby busy streets and displaying your items in a department-store style, you can increase the amount your sale brings in.
2. Sell on eBay. Books, CDs, unused sports or exercise equipment, clothing, novelty items -- people buy all kinds of things. Even if you're selling several small items, the money can add up. Just make sure the buyer, not you, pays the cost of shipping.
3. Put clothes on consignment. This is an especially good way to get rid of clothing like fancy dresses (think old prom gowns and cocktail dresses you'll never wear again), but anything in good condition can be put on consignment. You share the money from the sale with the consignment shop, but it's an easy way to squeeze some money out of clothes that would otherwise just take up closet space.
4. Perform household services. You can earn some money informally by letting friends, family, and others in your community know that you're available to clean their houses or apartments, or to take in ironing. If you find you have a knack and stamina for cleaning quickly and thoroughly, you can turn this into a regular, reliable way to earn extra money every month.
5. Have a bake sale. Do you make a killer chocolate chip cookies? Are yummy breakfast burritos your specialty? If so, why not bring in your items once a week to your job and sell them to coworkers and other businesspeople in the vicinity? If you don't have a job, what about a friend's workplace, a community center or a nursing home? Put the word out beforehand and gauge the response as you go, so you don't end up with a lot of leftover food. By talking up your home-baked goodies and arriving at the same time every day or every week, you may find that people start to anticipate your arrival. You can start a cottage industry along the lines of Mary's Monday Cookie Break when you come around to hawk your wares.
6. Sell homegrown fruits and vegetables. You don't have to have a farm to produce delicious, delicious, organic produce. By presenting your goods in an appealing way (save the plastic or cardboard produce containers from the grocery store and tie them with a distinctive ribbon or desktop-printed label), you give them niche appeal, and you can sell them much the same way as baked items, listed above.
7. Have a family car wash. Enlist your spouse, your kids and their friends on a Saturday to hold a car wash. Talk to local merchants who have parking lots and ask them to donate the space, or set up an assembly line on your street. By naming the event ("The Annual Jones Family Car Wash") and highlighting an upbeat family goal ("We use this car wash to pay for the kids' extracurricular school activities"), you give people a reason to join your cause.
8. Do gardening services. Mowing lawns is a perennial summer job for kids. If you have a mower, encourage your children to launch a business -- or do it yourself. In addition, you can also weed or haul gardening rubbish to the dump (often garbage services won't remove it).
9. Provide man-with-van services. Or, in this case, woman with van (or truck). This service is great for people who need to move a single piece of furniture or for young people who don't have a lot of stuff. If you're able to do moves on your own or with a helper like a friend or spouse, you can position yourself as a mother's helper (a woman living alone might feel more comfortable having another woman moving something into or out of her home). If you don't have a lot of physical strength, your husband and a cousin, uncle or son can do the heavy lifting and you can take care of scheduling and follow-up. A small classified ad in the local paper is an economical way to advertise.
10. Get a paper route. While we often think of paper delivery as a job for a boy on a bike, all kinds of people pick up extra cash this way. Because papers are delivered in the morning, it's possible to complete a route before the regular workday starts, or before your kids are up. (Just make sure you catch up on your sleep by going to bed early at night!)
11. Pet sit. Owners are always looking for reliable pet-care services. Plus, if you stay home with your kids during the day, a regular dog-walking gig is a great way to get everyone out of the house for some fresh air and earn extra money. Put the word out at pounds, the ASPCA, the local veterinarian's and dog runs. Be prepared to provide references from anyone you've ever sat for before. Learn how you can also turn pet sitting into a home business.
12. Babysit. To provide regular child care in your home, you'll often need to be accredited and registered with the state. But occasional babysitting in your home or someone else's is more straightforward. You might already babysit for friends for free, but by reaching out in your community you can find parents whom you would feel comfortable charging a reasonable fee. Depending on your schedule, you can position yourself as a last-minute resource, a Saturday sitter while Mom does errands, a date-night sitter and so on.
13. Rent out a room. This option might take longer than some of the others listed here, but it can provide steady income for a set period of time, or even indefinitely. It might require that your kids share a bedroom or that you give up a family room in the house, so everyone in the family should be prepared for the changes. And of course care should be taken to pick carefully to ensure you get a trustworthy boarder. This is an especially good option if you live near a university or technical college. Eighteen- to 22-year-olds will more likely be fine renting a room with kitchen privileges than older people, and you'll be able to rent on a semester basis.
If you know any local who is offering services such as house-cleaning, grass-cutting, babysitting, please let me know...I would definitely be engaging them and will put good word of mouth to other friends and families (provided the services are satisfactory!)...Anyway, enjoy the article..you never know, you are on your way to become a self-made towkeh...
By Jennifer Howze
Everybody needs a quick infusion of cash from time to time. These ideas bring in money fast, and many can also be done at flexible times, so it's easier to arrange child care with a friend or family member for free.
1. Have a garage sale. By using a few easy tricks, like posting fliers at grocery stores and Laundromats, making signs that can be seen from nearby busy streets and displaying your items in a department-store style, you can increase the amount your sale brings in.
2. Sell on eBay. Books, CDs, unused sports or exercise equipment, clothing, novelty items -- people buy all kinds of things. Even if you're selling several small items, the money can add up. Just make sure the buyer, not you, pays the cost of shipping.
3. Put clothes on consignment. This is an especially good way to get rid of clothing like fancy dresses (think old prom gowns and cocktail dresses you'll never wear again), but anything in good condition can be put on consignment. You share the money from the sale with the consignment shop, but it's an easy way to squeeze some money out of clothes that would otherwise just take up closet space.
4. Perform household services. You can earn some money informally by letting friends, family, and others in your community know that you're available to clean their houses or apartments, or to take in ironing. If you find you have a knack and stamina for cleaning quickly and thoroughly, you can turn this into a regular, reliable way to earn extra money every month.
5. Have a bake sale. Do you make a killer chocolate chip cookies? Are yummy breakfast burritos your specialty? If so, why not bring in your items once a week to your job and sell them to coworkers and other businesspeople in the vicinity? If you don't have a job, what about a friend's workplace, a community center or a nursing home? Put the word out beforehand and gauge the response as you go, so you don't end up with a lot of leftover food. By talking up your home-baked goodies and arriving at the same time every day or every week, you may find that people start to anticipate your arrival. You can start a cottage industry along the lines of Mary's Monday Cookie Break when you come around to hawk your wares.
6. Sell homegrown fruits and vegetables. You don't have to have a farm to produce delicious, delicious, organic produce. By presenting your goods in an appealing way (save the plastic or cardboard produce containers from the grocery store and tie them with a distinctive ribbon or desktop-printed label), you give them niche appeal, and you can sell them much the same way as baked items, listed above.
7. Have a family car wash. Enlist your spouse, your kids and their friends on a Saturday to hold a car wash. Talk to local merchants who have parking lots and ask them to donate the space, or set up an assembly line on your street. By naming the event ("The Annual Jones Family Car Wash") and highlighting an upbeat family goal ("We use this car wash to pay for the kids' extracurricular school activities"), you give people a reason to join your cause.
8. Do gardening services. Mowing lawns is a perennial summer job for kids. If you have a mower, encourage your children to launch a business -- or do it yourself. In addition, you can also weed or haul gardening rubbish to the dump (often garbage services won't remove it).
9. Provide man-with-van services. Or, in this case, woman with van (or truck). This service is great for people who need to move a single piece of furniture or for young people who don't have a lot of stuff. If you're able to do moves on your own or with a helper like a friend or spouse, you can position yourself as a mother's helper (a woman living alone might feel more comfortable having another woman moving something into or out of her home). If you don't have a lot of physical strength, your husband and a cousin, uncle or son can do the heavy lifting and you can take care of scheduling and follow-up. A small classified ad in the local paper is an economical way to advertise.
10. Get a paper route. While we often think of paper delivery as a job for a boy on a bike, all kinds of people pick up extra cash this way. Because papers are delivered in the morning, it's possible to complete a route before the regular workday starts, or before your kids are up. (Just make sure you catch up on your sleep by going to bed early at night!)
11. Pet sit. Owners are always looking for reliable pet-care services. Plus, if you stay home with your kids during the day, a regular dog-walking gig is a great way to get everyone out of the house for some fresh air and earn extra money. Put the word out at pounds, the ASPCA, the local veterinarian's and dog runs. Be prepared to provide references from anyone you've ever sat for before. Learn how you can also turn pet sitting into a home business.
12. Babysit. To provide regular child care in your home, you'll often need to be accredited and registered with the state. But occasional babysitting in your home or someone else's is more straightforward. You might already babysit for friends for free, but by reaching out in your community you can find parents whom you would feel comfortable charging a reasonable fee. Depending on your schedule, you can position yourself as a last-minute resource, a Saturday sitter while Mom does errands, a date-night sitter and so on.
13. Rent out a room. This option might take longer than some of the others listed here, but it can provide steady income for a set period of time, or even indefinitely. It might require that your kids share a bedroom or that you give up a family room in the house, so everyone in the family should be prepared for the changes. And of course care should be taken to pick carefully to ensure you get a trustworthy boarder. This is an especially good option if you live near a university or technical college. Eighteen- to 22-year-olds will more likely be fine renting a room with kitchen privileges than older people, and you'll be able to rent on a semester basis.
Thursday, 18 October 2007
Get Rich Young
I found this article in MSN money which is very interesting...The moral of the article is to get your attitude right, believe in yourself and hey! No Pain No Gain...and let's banish the Brunei-mentality of get-rich-quick-and-businessman-equals-a-Mercedez Benz.
Tips to get rich young
By Emma-Lou Montgomery
October 12 2007
You almost never get rich working for someone else, and to give you a helping hand in starting your own business and making it successful here are five tips from people who made it big before they were 30.
An increasing number of young people are defying the traditional view that you need to spend years learning the ropes before starting your own business. Not only that, but they're also proving themselves to be inspirational entrepreneurs in the process.
"Owning your own business is no longer the preserve of older employees with decades of work experience," pointed out Chris Humphries, director general of City & Guilds.
Young people who have already made their mark are providing the biggest inspiration for the next generation. Nearly half of the young wannabe entrepreneurs said they know someone under the age of 30 who has already gone it alone.
Whether you already have a role model or not, here are some valuable tips and insights about starting up in business from five young, and highly successful, entrepreneurs.
1. Know your target audience
When Richard Reed, co-founder of smoothie and fruit drinks company Innocent, started out he took his former boss' advice to heart and made certain he knew his target audience.
"The only target audience we absolutely knew was our friends and family," Richard said.
"And what we identified was a need for something healthy that we and our friends and family could consume despite the long hours we worked and relatively unhealthy lifestyles we had as a result."
To fill this gap in the market he, along with Adam Balon and Jon Wright, bought £500 worth of fruit and turned it into smoothies. They sold them from a stall at a music festival in London in the summer of 1998 and this was the start of a business which now has a £10 million annual turnover.
But before leaping in, they made sure they were making the right move.
"We put up a big sign saying 'Do you think we should give up our jobs to make these smoothies?'. And put out a bin saying 'YES' and a bin saying 'NO'. We asked people to put the empty bottle in the right bin. At the end of the weekend the 'YES' bin was full so we went in the next day and resigned," Richard said.
2. Remember there's no such thing as failure
As a schoolboy, Peter Jones dreamed of running a multi-million pound company. Today he is one of the stars of the TV series Dragons Den and in charge of a £200 million empire as owner, chairman and chief executive of various businesses ranging from telecoms and leisure to publishing and media.
He's had plenty of ups and downs on his way to the top, but Peter says the key to success is to refuse to acknowledge the existence of the word "failure".
"I believe that there are no failures in this world - only events that give you feedback," Peter said.
And his long line of achievements, starting when he set up a tennis academy at a local club aged just 16, are testimony to that.
By the age of 28, as the youngest-ever head of PC business at computer firm Siemens Nixdorf, he was off again. This time with Phones International Group, his telecoms business that now counts every leading brand in the mobile industry among its business partners, whether as a supplier, customer or collaborator.
You could say he wouldn't know the meaning of the word failure, having been recognised as the 13th fastest growing business within the Sunday Times/Virgin Atlantic UK Fast Track League Table. Peter was named as Emerging Entrepreneur of The Year by The Times/Ernst & Young and came 14th in the Daily Telegraph's young entrepreneurs list in 2005.
3. Have a 'can-do' attitude
When Michelle Mone was just 10 years old, she was already thinking big. Having decided she wanted to become an entrepreneur, she recruited 12 friends and started a company delivering hot rolls with peoples' morning newspaper. The woman who left school at 15 with no qualifications has since been named not only "Businesswoman of the Year", but also "World Young Business Achiever", following the phenomenal worldwide success of her company Ultimo Bras.
Michelle said: "The most important thing, in my opinion, is that can-do attitude. The can-do attitude and have-a-go mentality I believe is what breeds success."
4. You can reinvent the wheel
Fraser Doherty was 14 when he started making jam and selling it locally. Now he runs Doherty's Preserves, a luxury jam company that sells its produce all over the world. He's proof that sometimes the best business ideas are simply improving what we've got.
"I started mine in an afternoon with a dozen oranges and a bag of sugar," he said.
"Since I was about eight I had lots of little projects on the go, trying different ways of making pocket money. The catalyst came when my gran taught me her top secret jam recipe and I had something of a 'eureka' moment. I realised I could make jam myself and sell it door to door in the local area."
5. Give it a go
Simon Woodroffe, founder of conveyor-belt sushi bar Yo Sushi, says the key to success is just to do it.
He said: "Ban your brain from thinking about whether the idea will work and whether you should do it. Most budding entrepreneurs stall at the starting line, thinking 'Shall I? Shan't I?'
"Instead, put in the work of developing and researching the project, knowing that you will not make the decision to proceed until you have more information and awareness."
With those tips for success up your sleeve, the desire and ambition to succeed, and the dedication and drive to meet your goals, there should be no stopping you. Whatever you want to be. Whatever you want to do. Just do it.
Salaam.
Tips to get rich young
By Emma-Lou Montgomery
October 12 2007
You almost never get rich working for someone else, and to give you a helping hand in starting your own business and making it successful here are five tips from people who made it big before they were 30.
An increasing number of young people are defying the traditional view that you need to spend years learning the ropes before starting your own business. Not only that, but they're also proving themselves to be inspirational entrepreneurs in the process.
"Owning your own business is no longer the preserve of older employees with decades of work experience," pointed out Chris Humphries, director general of City & Guilds.
Young people who have already made their mark are providing the biggest inspiration for the next generation. Nearly half of the young wannabe entrepreneurs said they know someone under the age of 30 who has already gone it alone.
Whether you already have a role model or not, here are some valuable tips and insights about starting up in business from five young, and highly successful, entrepreneurs.
1. Know your target audience
When Richard Reed, co-founder of smoothie and fruit drinks company Innocent, started out he took his former boss' advice to heart and made certain he knew his target audience.
"The only target audience we absolutely knew was our friends and family," Richard said.
"And what we identified was a need for something healthy that we and our friends and family could consume despite the long hours we worked and relatively unhealthy lifestyles we had as a result."
To fill this gap in the market he, along with Adam Balon and Jon Wright, bought £500 worth of fruit and turned it into smoothies. They sold them from a stall at a music festival in London in the summer of 1998 and this was the start of a business which now has a £10 million annual turnover.
But before leaping in, they made sure they were making the right move.
"We put up a big sign saying 'Do you think we should give up our jobs to make these smoothies?'. And put out a bin saying 'YES' and a bin saying 'NO'. We asked people to put the empty bottle in the right bin. At the end of the weekend the 'YES' bin was full so we went in the next day and resigned," Richard said.
2. Remember there's no such thing as failure
As a schoolboy, Peter Jones dreamed of running a multi-million pound company. Today he is one of the stars of the TV series Dragons Den and in charge of a £200 million empire as owner, chairman and chief executive of various businesses ranging from telecoms and leisure to publishing and media.
He's had plenty of ups and downs on his way to the top, but Peter says the key to success is to refuse to acknowledge the existence of the word "failure".
"I believe that there are no failures in this world - only events that give you feedback," Peter said.
And his long line of achievements, starting when he set up a tennis academy at a local club aged just 16, are testimony to that.
By the age of 28, as the youngest-ever head of PC business at computer firm Siemens Nixdorf, he was off again. This time with Phones International Group, his telecoms business that now counts every leading brand in the mobile industry among its business partners, whether as a supplier, customer or collaborator.
You could say he wouldn't know the meaning of the word failure, having been recognised as the 13th fastest growing business within the Sunday Times/Virgin Atlantic UK Fast Track League Table. Peter was named as Emerging Entrepreneur of The Year by The Times/Ernst & Young and came 14th in the Daily Telegraph's young entrepreneurs list in 2005.
3. Have a 'can-do' attitude
When Michelle Mone was just 10 years old, she was already thinking big. Having decided she wanted to become an entrepreneur, she recruited 12 friends and started a company delivering hot rolls with peoples' morning newspaper. The woman who left school at 15 with no qualifications has since been named not only "Businesswoman of the Year", but also "World Young Business Achiever", following the phenomenal worldwide success of her company Ultimo Bras.
Michelle said: "The most important thing, in my opinion, is that can-do attitude. The can-do attitude and have-a-go mentality I believe is what breeds success."
4. You can reinvent the wheel
Fraser Doherty was 14 when he started making jam and selling it locally. Now he runs Doherty's Preserves, a luxury jam company that sells its produce all over the world. He's proof that sometimes the best business ideas are simply improving what we've got.
"I started mine in an afternoon with a dozen oranges and a bag of sugar," he said.
"Since I was about eight I had lots of little projects on the go, trying different ways of making pocket money. The catalyst came when my gran taught me her top secret jam recipe and I had something of a 'eureka' moment. I realised I could make jam myself and sell it door to door in the local area."
5. Give it a go
Simon Woodroffe, founder of conveyor-belt sushi bar Yo Sushi, says the key to success is just to do it.
He said: "Ban your brain from thinking about whether the idea will work and whether you should do it. Most budding entrepreneurs stall at the starting line, thinking 'Shall I? Shan't I?'
"Instead, put in the work of developing and researching the project, knowing that you will not make the decision to proceed until you have more information and awareness."
With those tips for success up your sleeve, the desire and ambition to succeed, and the dedication and drive to meet your goals, there should be no stopping you. Whatever you want to be. Whatever you want to do. Just do it.
Salaam.
Sunday, 27 May 2007
Why not Entrepreneur Challenge for Brunei?
The UK's Bank of Scotland and the Sunday Times have launched a 25 million pound 'Entrepreneur Challenge', in search for UK's Bill Gates. In a nutshell, 5 entreprenuers will be selected to share the winning prize. Each winner can win up to 5 million pounds funding (interest free loan) depending on the business.
Now, here's an idea for Brunei! Why not launch a similar but in a smaller scale entrepreneur competition? Maybe of up to $250k per winner for those budding entreprenurs who have the vision and ambition to drive their businesses to the top but lack of the financial means.
Of course, there should also be mentoring from Brunei's prominent entrepreneurs just as the UK ,where Sir Philip Green owner of BHS, would be mentoring their winner.
However, it would be silly to let just any Tom, Dick and Harry to enter the competition, this is after all, not Brunei Idol!, there will be criteria to be met. Eg. an indication that the participant is already in business (not merely of having a business registration of course), perhaps an already existing product/service to sell, a turnover of some money and so on. For the UK's Challenge Criteria click here. I suppose, Brunei should have a lesser stringent criteria to ensure good response.
K. Hope somebody will take up on this and thrash it out in the next meeting ; )
Salaam!
ps. Melinda Doolitle should have won the American Idol!
Now, here's an idea for Brunei! Why not launch a similar but in a smaller scale entrepreneur competition? Maybe of up to $250k per winner for those budding entreprenurs who have the vision and ambition to drive their businesses to the top but lack of the financial means.
Of course, there should also be mentoring from Brunei's prominent entrepreneurs just as the UK ,where Sir Philip Green owner of BHS, would be mentoring their winner.
However, it would be silly to let just any Tom, Dick and Harry to enter the competition, this is after all, not Brunei Idol!, there will be criteria to be met. Eg. an indication that the participant is already in business (not merely of having a business registration of course), perhaps an already existing product/service to sell, a turnover of some money and so on. For the UK's Challenge Criteria click here. I suppose, Brunei should have a lesser stringent criteria to ensure good response.
K. Hope somebody will take up on this and thrash it out in the next meeting ; )
Salaam!
ps. Melinda Doolitle should have won the American Idol!
Friday, 25 May 2007
Congrats darling
I would like to congratulate my darling husband for getting the highest grade in his final project. I'm very proud of you, darling!
I believe I'm one of his biggest admirers (though I don't think he knows that!). I'm not saying this just because he's my husband but he has these qualities that I don't often see in many others, including myself. Let me tell you his story.
We graduated in the year when Brunei's economy was really badly hit by the Asian economic crisis and the Amedeo crisis. There were very limited job openings and I was one of the lucky few who got a job immediately, for many others it was bad news, including my then-boy friend (my husband lerr).
Like other unemployeds, his pride and self-esteem were affected by the day, especially during the times when my dad asked him whether he had found a job (although I am pretty sure my dad was sincerely asking that question, but knowing men, I know his ego was a bit bruised).
After like 8 months, there was an opening to be a teacher/instructor at the technical college. My husband flatly shot down the idea because he said he didn't deserve it. He was not trained to be a teacher so let someone who had the right qualification get that job. He said he didn't want to 'makan gaji buta'.
After like 1 year of waiting for the 'right job' he gave up. He said God gave him a brain and 2 well-functioned hands, so why not use them? He then started his own business. He didn't have any capital. He's a very proud person. He didn't want to ask any help from his family because he said he knew they would ridicule him before they helped him. I then lent him some money to buy a computer and a printer. And that was it. He worked really hard trying to get his business going(well at that time we wouldn't even call it a 'business). I guess he was trying to earn a living. I still remember how proud I was when he had his first project. (I guess we are indebted to a few people who had faith in locals, and especially had faith in my husband).
Alhamdulillah...at the times when many Bruneians were crazily borrowing money from the banks to have the grandest car, the grandest 'hantaran', the grandest wedding, my husband managed to save some money for our wedding and totally be debt-free. We wedded after 3 years of him opening his business.
Fast forward to today, he has a couple of businesses rolling. He employs 8 people and 6 of them are locals (locals are his priority, unfortunately we have had bad experiences with local staff, from stealing to shirking to poor discipline and so on. I will blog on this some time. However, he still believes in giving the locals the first chance). He is now earning a lot MORE than what I'm earning and totally debt-free (not even a credit card debt!) What makes me even proud is that he looks after his employees very well. His motto is 'Pay your employees first!'.
Now, he's doing his post graduate study in one of the UK's good institutions of his field, SELF-SPONSORED. He works really hard in every assignments and projects. And today, again he has made me proud for getting the highest grade in his end of year project (and I suspect he's the best student in his year).
Sometimes, I think to myself, Brunei just needs 100 like him in order to make a big difference especially in the private sector. He has the right ingredients to be a good successful person: honest, diligent, pride and modest as in 'ukur baju di badan sendiri'. (I tell you, he is so honest that I have never seen him lie to even a stranger!)
I also declare him as THE most understanding husband in the world (to me, of course!), as he always support me in whatever I'm doing even if it means having to make some sacrifices.
Anyway, this is not meant to be a lovey-dovey post. I am writing as a person who admires someone ,who (thankfully) happens to be my husband. The moral of the story is NEVER GIVE UP! No matter what you do, albeit studying or starting a business or even working as a government employee, the road to success is HARD WORK. Insya Allah, Usaha, Niat, Tawakkal, you will be rewarded!
Salaam.
I believe I'm one of his biggest admirers (though I don't think he knows that!). I'm not saying this just because he's my husband but he has these qualities that I don't often see in many others, including myself. Let me tell you his story.
We graduated in the year when Brunei's economy was really badly hit by the Asian economic crisis and the Amedeo crisis. There were very limited job openings and I was one of the lucky few who got a job immediately, for many others it was bad news, including my then-boy friend (my husband lerr).
Like other unemployeds, his pride and self-esteem were affected by the day, especially during the times when my dad asked him whether he had found a job (although I am pretty sure my dad was sincerely asking that question, but knowing men, I know his ego was a bit bruised).
After like 8 months, there was an opening to be a teacher/instructor at the technical college. My husband flatly shot down the idea because he said he didn't deserve it. He was not trained to be a teacher so let someone who had the right qualification get that job. He said he didn't want to 'makan gaji buta'.
After like 1 year of waiting for the 'right job' he gave up. He said God gave him a brain and 2 well-functioned hands, so why not use them? He then started his own business. He didn't have any capital. He's a very proud person. He didn't want to ask any help from his family because he said he knew they would ridicule him before they helped him. I then lent him some money to buy a computer and a printer. And that was it. He worked really hard trying to get his business going(well at that time we wouldn't even call it a 'business). I guess he was trying to earn a living. I still remember how proud I was when he had his first project. (I guess we are indebted to a few people who had faith in locals, and especially had faith in my husband).
Alhamdulillah...at the times when many Bruneians were crazily borrowing money from the banks to have the grandest car, the grandest 'hantaran', the grandest wedding, my husband managed to save some money for our wedding and totally be debt-free. We wedded after 3 years of him opening his business.
Fast forward to today, he has a couple of businesses rolling. He employs 8 people and 6 of them are locals (locals are his priority, unfortunately we have had bad experiences with local staff, from stealing to shirking to poor discipline and so on. I will blog on this some time. However, he still believes in giving the locals the first chance). He is now earning a lot MORE than what I'm earning and totally debt-free (not even a credit card debt!) What makes me even proud is that he looks after his employees very well. His motto is 'Pay your employees first!'.
Now, he's doing his post graduate study in one of the UK's good institutions of his field, SELF-SPONSORED. He works really hard in every assignments and projects. And today, again he has made me proud for getting the highest grade in his end of year project (and I suspect he's the best student in his year).
Sometimes, I think to myself, Brunei just needs 100 like him in order to make a big difference especially in the private sector. He has the right ingredients to be a good successful person: honest, diligent, pride and modest as in 'ukur baju di badan sendiri'. (I tell you, he is so honest that I have never seen him lie to even a stranger!)
I also declare him as THE most understanding husband in the world (to me, of course!), as he always support me in whatever I'm doing even if it means having to make some sacrifices.
Anyway, this is not meant to be a lovey-dovey post. I am writing as a person who admires someone ,who (thankfully) happens to be my husband. The moral of the story is NEVER GIVE UP! No matter what you do, albeit studying or starting a business or even working as a government employee, the road to success is HARD WORK. Insya Allah, Usaha, Niat, Tawakkal, you will be rewarded!
Salaam.
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