GLOBALIZATION

AND SMEs

OPPORTUNITIES AND THREATS FOR

UK ENTREPRENEURS

***

PETER JONES

BY:

AMIRUL NIZAM MOKHTAR

ASMA LIYANA JA’AFAR

SYAHIRAH AMIRA MD DIN

OUTLINE

About the Author

The Overview of SME

Opportunities

Threats

Extra Discussions

References

About the author – Peter Jones

o Born in 18 March 1966, raised in

Berkshire

o Current job: Entrepreneur,

businessman, television

presenter

o Set up Phones International

Group in April 1998

o Founder of Peter Jones

Enterprise Academy (PJEA)

o Owns a TV production

company (Peter Jones TV), and

has several property

investments

o Owner and chief executive

of Jessops in the United

Kingdom

The Overview of SME

SME in Malaysia SME in UK

MP1

(1966-1970)

•Recognized the importance of SME and help to assist & solve the current problem

MP2

(1971-1975)

•Concern to expand by promote and assist SME.

• Implementation of New Economic Policy

MP3

(1976-1980)

•Acknowledge SME as training ground for future entrepreneurs

MP4

(1981-1985)

•Emphasized on training, saving, mobilization of resources, entrepreneurship development and inter-industry linkages

MP5

(1986-1990)

•Concern on expansion, improvement and modernization of SME

MP6

(1991-1995)

•Help SME to find export market

MP7

(1996-2000)

•Accelerate the growth of SME; High tech ventures, tax cuts, efficient operation

Challenges:

Financial capability, Innovation and research,

Management capability, market accessibility

1945-1970

• The government policy was designed to stimulate growth of large firms

1970-1980

• UK government has stressed to foster an enterprise economy

• The contribution of SME to the economy has been recognized with the publication of Bolton Committee Report in 1970

Global Financial Crisis (2008)

Accelerated reduction of the budget deficit which aimed to stimulate SME through tax and regulatory reform

.

Challenges:

1. Lack of support and education at

home

2. Lack of guidance from responsible

agencies

SME’S Opportunities

1) Get into the circle of an Acquisitive Global Group

– Diversified portfolios/risk

– Gain synergy of corporate armoury

In Malaysia:

1) Aeon acquired Carrefour Malaysia in 2012 for 250 million Euro, plan to acquire

Tesco too for RM 5.32 billion to share price(The Star, 7th July 2015)

2) Malaysia Building Society Berhad (MBSB) plan to merge with Bank Muamalat to

get a full-pledge Islamic compliance (The Star, 1st October 2015)

SME’S Opportunities

2) Department of Business Enterprise and Regulatory Reform (DBERR)

– wealth of support (export growth)

– provides supervision (grants and discounts trade delegation & international

events)

In Malaysia:

– ASEAN launched Growth Acceleration Exchange (GAX) develop a digital

infrastructure to cater to the needs of the SME community (News Straits Time,

20th November 2015)

Threats1) Cultural & Language Differ

Cultural and language difference influence the way a product may be marketed, its brand name and the advertising campaign chosen.

(Doole & Lowe, 1999)

Language is part of the culture and it is one primary aspect in a culture that differentiates groups of people. (Brown, 1963)

Pepsi started a marketing campaign in Taiwan, the translation of the Pepsi slogan "Come Alive with the Pepsi Generation” came out as

"Pepsi will bring your ancestors back from the dead”. (LEO Network, 2015)

Threats2) Lack of Support & Education

Understand basic business skills and terminology

Business need to be taught in schools by businessmen

Our current educational system is not producing

individuals who are ready to cope in business world

Need entrepreneurship education to acquire the

entrepreneurial skills especially on how to launch

a new venture (Lebusa, 2011)

Lack of standardization in the program syllabus (Mcmullan & Long, 1987) (Garavan &

O′Cinneide, 1994)

Lack of personal entrepreneurial experience

of the entrepreneurship lecturers themselves and lack

of involvement in real business (Zuhairah Arif, Herna,

& Zarinah, 2014)

Extra Discussions

1) International expansion

– Internet (basic form)

– Global strategy as a wonderful exit route

– Build clear strategy and plan

2) Educational system in schools

- Taught by businessmen themselves

References– Brown, I. C. (1963). Understanding Other Culture.

Englewood Cliffs: N.J: Prentice Hall.

– Doole, I., & Lowe, R. (1999). International

Marketing Strategy. Singapore: International

Thomson Business Press.

– Garavan, T. N., & O′Cinneide, B. (1994).

Entrepreneurship Education and Training

Programmes: : A Review and Evaluation – Part 1.

Journal of European Industrial Training, Vol. 18,

Iss. 8, 3-12.

– Lebusa, M. J. (2011). Does Entrepreneurial

Education Enhance Under-graduate Students'

Entrepreneurial Self-efficacy? A Case at one

University of Technology in South Africa. China-

USA Business Review, Vol. 10, No. 1, 53-64.

– LEO Network. (21 November, 2015). English

Horror Mistakes: MISTAKES IN ADVERTISING.

Retrieved from Learn English Network:

http://www.learnenglish.de/mistakes/horrormist

akes.html

– Mcmullan, W. E., & Long, W. A. (1987).

Entrepreneurship Education in the Nineties.

Journal of Business Venturing, Vol. 2, Iss. 3, 261-

275.

– Zuhairah Arif, A., Herna, M., & Zarinah, H. (2014).

“Legal Eagle” Entrepreneurship Education for

Law Students: Special Reference to International

Islamic University Malaysia. Pertanika Journals

Social Science and Humanities Vol. 22, 83-98.

– Ghazali, S. (2014). Entrepreneurship and

Innovation. 28th CACCI Conference (pp. 16-33).

Kuala Lumpur: Centre of Entrepreneur

Development and Research

– Hashim, Mohd Khairuddin (1999). "A Review of

the Role of SMEs in the Manufacturing Sector in

Malaysia", Malaysian Management Review,

June

– Hughes, A. 2001, "Innovation and Business

Performance: Small Entrepreneurial Firms in the

UK and the EU", New Economy, Vol. 8 (3), pp:

157-163

– Keeble, D. 1995, "Small Firms, Innovation and

Regional Development in Britain in the

1990s", ESRC Centre for Business Research,

University of Cambridge, Working Paper N° 42

– Malaysia, Seventh Malaysian Plan 1996-2000

(1996). Kuala Lumpur: National Printing

Department

– The Star. (2015). Aeon Co keen to buy Tesco

Malaysia valued at RM5.32bil.

– The Star. (2015). MBSB gets nod for merger talks

with Bank Muamalat.

– New Straits Times. (2015). Asean Growth

Accelerator Exchange launched today.

– Internet World Stats. (2015). Internet Users by

World Region.