When size does matter

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/SMESIZE/Article/

Published: July 16, 2012

LAST week the headlines in most media were blaring with the launch of the much awaited SME Masterplan. Another milestone was made in the country's SME development chapter when the eight-year plan (2012-2020) document which serves as a "game changer" was unveiled to the public by Prime Minister Datuk Seri Najib Razak after he chaired the 13th National SME Development Council Meeting.

What comes to my mind is the lyrics of a song by the late Michael Jackson, "The Man in the Mirror"... I'm starting with the man in the mirror, I'm asking him to change his ways; and no message could have been any clearer, if you wanna make this world a better place. How very apt! And who is the man in mirror?

None other than the 600,000 powerful entrepreneurs who will be the "game changer" in the country's future economic development. The existence of these small businesses in our economy is sometimes underestimated.

But truth be told, there's nothing small about the impact they have on our economy as they may be small in size, but they are big in numbers. Undeniably, the economic impact of these small businesses to me is indeed a big deal.

As we plod along and move towards a high-income economy, this group of micro, small and medium businesses which comprise 97 per cent of the nation's businesses will drive domestic consumption and inevitably the country's economic growth.

And looking at the current facts and figures, 77 per cent of all total business establishments in the country comprised micro-enterprises, i.e they employ less than five workers.

Hence, to achieve our target by 2020, we need to transform the many micro-enterprises into bigger enterprises, and later groom them into "home-grown champions", ready to take on the world market.

In realising this vision, the SME Masterplan charts the direction to create globally competitive SMEs that will heighten wealth creation and social well-being of the nation.

Four strategic goals have been put in place namely: to drive business growth, increase the number of high growth and innovative companies, increase SMEs productivity and formalise business.

At the end of the plan period, the SME contribution to gross domestic product is expected to reach 41 per cent, employment 59 per cent and exports 25 per cent.

The prime minister was very serious about the need to raise the productivity of the micro-enterprises to the next level. He wanted to see the graduation of more "mom and pop" businesses operating from homes to operating on a bigger scale with proper facilities in place, complete with a structured marketing and packaging strategy.

His concern on this led to the idea on a new "break out" strategy - providing assistance to micro-enterprises and owner-operator businesses, from even registering their business, through to providing access to financing, right up to the provision of business advisory services on management, automation, marketing and branding.

 

This hand-holding approach is necessary to help micro-enterprises to graduate from micro to small and from medium to large.

In implementing the breakout strategy, a horizontal collaboration among the 15 ministries and 60 agencies is fundamental for the implementation and execution of the master plan.

Indeed, a comprehensive monitoring and evaluation system that will ensure the effectiveness of the 32 programmes, including the six high impact programmes embodied in the master plan will be put in place.

As a central coordinating agency, SME Corp is tasked to take on the lead role in spearheading this "living" document. We certainly are very excited in seeing a more strengthened, elevated and empowered organisation that truly aspires to meet the objectives of Vision 2020.

So, when do we start? Tan Sri Rafidah Aziz, our longest served International Trade and Industry Minister would definitely answer "yesterday"!

So, let's all put on our running shoes and start the journey together. Remember that a good plan implemented today is better than a perfect plan implemented tomorrow. Being a "living" document, we will tweak and twitch the plan in accordance to the prevailing economic scenario to ensure our targets are met.

H. Stanley Judd said, "A good plan is like a road map: it shows the final destination and usually the best way to get there."

Are you ready to join us on this journey?

Datuk Hafsah Hashim is the chief executive officer of Small and Medium Enterprises Corporation Malaysia (SME Corp Malaysia)