Women & Entrepreneurship in Malaysia - Strategies & Action Plans

WOMEN & ENTREPRENEURSHIP IN MALAYSIAMALAYSIASTRATEGIES AND ACTION PLANS

Kenny OngCNI Holdings Berhad

Intro: CNI

1. 22 years old

2. Core Business: MLM

3. Others: Contract Manufacturing, F&B Retail, Export/Trading, eCommerce, Shared Services

4. Malaysia, Singapore, Brunei, Indonesia, India, 4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam

5. Staff force: ± 500 (Malaysia)

6. Distributors: 150,000 (Malaysia)

7. Products: Consumer Goods and Services

The Business World Today…

The World Today…

13th April 2009

•Two Domino’s employees

•YouTube

•Apology from Domino’s after

48 hours

•1 million hits

•Twitter: questions on silence

•LinkedIn: suggestions by users

in forum

BusinessWeek, May 4, 2009

Guess Who?

Intro

Trends & Statistics

Government Barriers

IntroGovernment

Initiatives

10th Malaysia Plan

Barriers and

Challenges

Trends: Women (Global)

• One billion people living on less than US$1 a

day, an estimated 70 per cent of whom are

girls and women.

• Globally, the participation rate of women in • Globally, the participation rate of women in

economic activities is 52.5 per cent,

• Income earned by women is less than that of

men’s, with the ratio ranging from 0.83:1 in

Kenya to as low as 0.19:1 in Oman

Source: “Malaysia - Nurturing Women Entrepreneurs”, United Nations

Development Programme (UNDP), Malaysia, May 2008.

Trends: Women (Global)Low Literacy: Why women have been prevented from

participating fully in the economy



Trends: Women (Malaysia)The level of gender inequality in Malaysia declined sharply

over the period 1980-2004



Trends: Women

(Malaysia)

• Since 1990: rapid increase in the share of female employment in the wholesale and retail trade, hotels, and restaurants sector and the financial services sector

• Ratio of estimated female to male earned income is a mere 0.36.

• Sizable portion of women to stop working after their • Sizable portion of women to stop working after their first child has been a continuing feature of Malaysia’s labour market.

• A big challenge for Malaysia is to increase the proportion of Malaysian women in higher professional positions



Trends: Women (Malaysia)

Women in Malaysia have high education attainment, however

labour force participation is still low

Trends: Women (Malaysia)

Distribution of Malaysian Women Entrepreneurs by Ethnicity,

Stratum, and Age Group

Source: Malaysian Labour Force Report (Department of Statistics, 2004)

Trends: Women

(Conclusion & Summary)

1. Women entrepreneurship has been

recognised as an important untapped source

of economic growth

2. Women entrepreneurship is the best and 2. Women entrepreneurship is the best and

fastest way forward to bridge gap in gender

inequality

Why Women Rule

Men vs. Women: Getting

Dressed

Decision Chain

InfluencerWhy Women Rule3

Buyer

User

Men vs. Women

Government Initiatives

• Gender as a development focus was first mentioned in the Third Malaysia Plan (1976–1980)

• 2001: formation of the Ministry of Women, Family and Community Development (MWFCD)Family and Community Development (MWFCD)

• 2004, the Cabinet Committee on Gender Equality

• The Ninth Malaysia Plan (2006–2010): gender equality and women’s empowerment, new policies and strategies to deepen the mainstreaming of women in development



Government Initiatives

[10th Malaysia Plan]

12 National Key Economic Areas

- Oil and gas

- Palm oil and related-products

- Financial services

- Wholesale and retail

- Tourism

- Information and communications Opportunities for

Source: “TENTH MALAYSIA PLAN 2011-2015”, THE ECONOMIC PLANNING UNIT

PRIME MINISTER’S DEPARTMENT PUTRAJAYA 2010

- Information and communications

technology

- Education

- Electrical and electronic

- Business services

- Private healthcare

- Agriculture

- Greater Kuala Lumpur

Opportunities for

Entrepreneurship

KNOWING YOUR BUSINESS

Barriers and Challenges

Understanding Business

Barriers

Access to Capital

Networking & Support

End

“Having money but no solid

business idea is like having business idea is like having

motivation with no direction”

Business Model

Why it’s the most important thing

you have to know

The McPlaybook*

Make it easy to eat

• 50% drive-thru

• Meals held in one hand

Make it easy to prepare

• High Turnover

• Tasks simple to learn &

repeat

Make it quick

• “Fast Food”

• Tests new products

for Cooking Times

Make what customers want

• Prowls market for new

products

• Monitored field tests

*Adapted from: Businessweek , Februrary 5th 2007

What is the Business

Model?

USP

•Google

•Tata Nano

Market

DisciplineProfit Model

What is the Business

Model?

USP

Market


Business Model: Profit

Model

Revenue

CostAssets

MarginCash

Flow

Market Discipline

"They are the most innovative"

"Constantly renewing and creative"

"Always on the leading edge"

"A great deal!""Exactly what I need"

Product Leadership

OperationalExcellence

CustomerIntimacy•Air Asia

•LV

•Ramly

"A great deal!"

Excellent/attractive price

Minimal acquisition cost and hassle

Lowest overall cost of ownership

"A no-hassles firm"

Convenience and speed

Reliable product and service

"Exactly what I need"

Customized products

Personalized communications

"They're very responsive"

Preferential service and

flexibility

Recommends what I need

"I'm very loyal to them"

Helps us to be a success

Excellence

Product Leadership

(best product)

Market Disciplines

Operational Excellence

(low cost producer)

Customer Intimacy

(best total solution)

Product Leadership

(best product)

Market Disciplines


(low cost producer)

Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995

Customer Intimacy


Operational

Excellence

• Competitive price

• Error free, reliable

• Fast (on demand)

• Simple

Customer Intimacy

• Management by

Fact

• Easy to do

business with

• Have it your way

Product Leadership

• New, state of the art

products or services

• Risk takers

• Meet volatile

customer needs

Market Discipline: Disciplines,

Priorities, and KPIs

• Simple

• Responsive

• Consistent

information for all

• Transactional

• 'Once and Done'

• Have it your way

(customization)

• Market segments

of one

• Proactive, flexible

• Relationship and

consultative

selling

• Cross selling

customer needs

• Fast concept-to-

counter

• Never satisfied -

obsolete own and

competitors' products

• Learning organization

Product Leadership

(best product)

Alignment & Consistency


(low cost producer)


Customer Intimacy


Product Leadership

(best product)

Alignment & Consistency

Apple powerful

products, premium

pricing, limited range

Still Doing


(low cost producer)


Customer Intimacy


HP well-balanced

portfolio, mass

customization

Acer super lean

cost structure,

aggressive pricing

Still Doing

well in

2009-2011

The Business Model

USP

Market


WHERE DO I GO FROM HERE?

Conclusion

“Hope is not a strategy.”

John MaxwellJohn Maxwell

How Do I Start?

1. Determine your objectives and reasons

‘why?’

2. What sort of business is suitable for me?

3. Where can I get financing?3. Where can I get financing?

4. Join business networking groups

5. Ask for advice from successful entrepreneurs

that you know

Why Entrepreneurship?

• Second income (side income)

• Dual income family

• Become rich

• Take care of parents/children/spouse• Take care of parents/children/spouse

• Freedom from job/boss (current job)

• Savings for Retirement

• Unemployment

Self Employed ≠ Business

Sources of Extra or More

Income

• Lottery

• Investment (Passive)

• Change Job/Career

• Part Time Job• Part Time Job

• Stock Market/Trading

• Insurance/Unit Trust

• Self Employed

• Business

Employment vs.

Entrepreneurship

Employment

• Stable income

• Low Risk

• Fixed/Limited income

Entrepreneurship

• Unstable income

• High risk

• Unlimited income• Fixed/Limited income

• Fixed hours

• No control

• Unlimited income

• Flexible hours

• Full control

Popular Business

Opportunities for Women

Business Types Remarks

Home-based Business Microenterprises

Direct Selling

Crafts

Financial Insurance

Unit Trust

Real EstateReal Estate

Franchise F&B

Education/Child care

Services F&B

Education

Beauty

Trading Clothes

Beauty

Other Products

Post Recession Trends

and Implications

Industry Convergence/

Extinction

Social Networking

Increased Regulations

What do these

mean to us?

Green & CSR

Non-Profit/NGO

increase

Increased Regulations mean to us?

Global Trends

Back-sourcing

Bottom-up

Innovation/Disruptions

Mobile Devices

Power re-balancing

Mergers, Acquisitions &

Divestment

Lower Middle Class rule

Nationalism and

Protectionism

Currency Wars

Mobile Devices

Extreme Emerging

Countries

Lower Middle Class rule

BRIC and PIIGS

Retail Trends?

Cutting back

Let consumers help

themselves

Smaller stores

In-store Ads

RFID technology

Niche private labels

Ready-made products

Ethnic stores

Smaller stores

Eco-friendly stores

Niche private labels

In-store restaurants

Where do Malaysians

get money for Business?

• Savings

• Sell stuff (e.g. Lelong.com)

• FAMA

• Relatives

• Joint Venture

• Direct Selling

• Government

• Banks

• Tai Yee Loong (not recommended)

Networking & Assistance

Special Assistance Schemes for Women Entrepreneurs

Executed by SMIDEC (August 1999–August 2007)

Micro Finance and SME

Financing

Definition of SMEs

• Micro business - sales <250K,less < 5

• Small enterprise - sales <10m, less < 50

• Medium enterprise - sales <25m, less < 150 • Medium enterprise - sales <25m, less < 150

Micro Finance = Loans of up to RM50, 000 ; No Collateral


Microcredit Schemes in Malaysia


Profile of

Microcredit

Institutions

in Malaysia


Microfinance Graduation Programme – Mechanism for Adequate

and Relevant Access to Financing in Malaysia

Support & Networking

• National Association of Women Entrepreneurs of

Malaysia (NAWEM)

• Federation of Women Entrepreneur Associations

Malaysia

• PUMM - Malaysia Entrepreneurs' Development • PUMM - Malaysia Entrepreneurs' Development

Association (Persatuan Usahawan Maju Malaysia)

Support

• Malaysia Business Startup Community

http://malaysia-bsc.ning.com

Government Support

• MITI

• MIDA – Malaysia Industrial Development Authority

• MATRADE - Malaysia External Trade Development

Corporation – Matching grant for market development

MPC - Malaysia Productivity Corporation • MPC - Malaysia Productivity Corporation

• SME Corporation (formerly SMIDEC)

– Advisory, financial, infrastructure, support & services

– Central point of reference for info and advisory services

• MIDF – Malaysia Industrial Development Bhd

• SME Bank

Competencies required:

Women Entrepreneurship

Technical

• finance

• planning

• marketing

• distribution

Soft Skills

• Motivation

• Negotiation

• Selling

• Grooming

Market

• Market research

• Funding & financing options

• Business • distribution

• branding

• packaging and labeling

• Contract & legal

• Grooming

• People skills

• Time Management

• Life balance

• Business networks

Encouragement for

Entrepreneurs"The digital watch didn't come from

established watch companies, the calculator

didn't come from slide rule or adding

machine companies, video games didn't come

from board-game manufacturers Parker Bros from board-game manufacturers Parker Bros

or Mattel, the ballpoint pen didn't come from

fountain pen manufacturers, and Google

didn't come from the Yellow Pages" Bob Seidensticker, Futurehype

End

“Do something you love so much

that you are willing to do it for free.

Then, do it so well that others are

willing to pay you for it.”

Unknown

Thank You.

soft copy of slides:

http://totallyunrelatedrandomanddebatable.blog

spot.com/

Women & Entrepreneurship in Malaysia - Strategies & Action Plans

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