DEVELOPING A GLOBAL NETWORK FOR SMALL BUSINESS ADVISERS - A VISION Brian L Dunsby BSc CEng FIChemE FIM FCIM FIAM FIBA IBA, PO Box 888, HARROGATE, HG2 8UH, UK Tel: +44-1423-879898 Fax: +44-1423-870025 E-mail: [email protected] Paper presented at the 46th ICSB World Conference, Taipei, June 2001

ABSTRACT “DEVELOPING A GLOBAL NETWORK OF SMALL BUSINESS ADVISERS” With the increasing globalisation of the SME sector, I believe that there is a need to facilitate international networking between the professional business advisers, consultants, counsellors, mentors and trainers who help small and medium-sized enterprises around the world. Those members of the Institute of Business Advisers who have worked overseas have shown that their extensive UK experience of small business start-up and growth can be applied successfully in emerging economies and developing countries around the world. There is however a problem matching the Clients’ needs to the range of expertise - and to the available funding for such projects. Conversely, UK small businesses interested in expanding globally would benefit from a direct contact with an experienced Adviser in the target market. Given an effective matching process, the overseas Adviser could guide UK small businesses on local culture and customer needs and then signpost them to appropriate routes to potential markets – and vice versa. To coin a phrase, "I have a dream" - helping small businesses through a global network of professional business advisers - via the Internet of course.

1. THE WORLD IS FULL OF SMALL BUSINESS “EXPERTS” ICSB and its Affiliates provide the basis of a world-wide network of academic teachers and researchers who specialise in small business. Likewise, ECSB and ESBS bring together those experts in Europe, as does ISBA in the UK. How often have we discussed informally the need to embrace more practitioners who can help to communicate best practice in small business management around the world? We need more people who can translate relevant research papers into government policy and real practical help for small business. I come from the very practical world of Business Advisers, Consultants, Counsellors, Facilitators, Mentors, and Trainers who specialise in supporting SMEs through a variety of Business Support Organisations. I believe that the actual proportions of SMEs around the world and their practical support needs are quite similar. I have a dream of a global network of professional Business Advisers entirely web-site based, helping SMEs to reach global markets, helping SMEs in developing countries, exchanging ideas in best practice, facilitating world-wide networking, promoting and upholding professional standards. It would be linked to the relevant professional Institutes like IBA in the UK and South Africa, the Australian Institute of Enterprise Facilitators, the Canadian Institute of Small Business Counsellors and others to come. I aim to work with the Small Business Conference Organisers like ICSB, ISBC, ESBS and ISBA to get more special sessions for practitioners; to promote research on small business support programmes; to promote programmes in entrepreneurship etc. I aim to promote those international conferences relevant to Business Advisers into a wider market than just the present academic wavelengths. Also to promote small business management tools and information generated in a large part by the Universities, but lacking in promotion AND “translation” into practical help for small business world-wide. That is my dream and I would ask for your support in principle to promote such a concept and to try to find a way of implementing it at no cost to ICSB. Let me explain the concept in more detail. 2. THE WORLD IS FULL OF SMALL BUSINESS! UK businesses - by employees: 95% have less than 10 employees 99% have less than 50 99.8% have less than 250 Nearly all businesses are SMEs in UK EU businesses - by employees: 93% have less than 10 employees 99% have less than 50 99.8% have less than 250 Nearly all businesses are SMEs in EU Your Country’s businesses:

___% have less than _____? employees ___% have less than _____? ___% have less than _____? Are most of your businesses SMEs? 2. PROBLEMS FACING SMEs A recent survey of IBA Members shows the most important problems facing SME Clients in the UK can be ranked in the following order, based on the weighted average responses 1. Cash Flow 2. Management Ability 3. Sales Volume 4. Costs 5. Prices and Margins 6. Government Regulations 7. Staffing Are the problems facing SMEs in your Country similar? Our Members also reported that the most important advisory topics as far as Clients are concerned are as follows: 1. 2. 3. 4. 5. 6. 7.

Marketing Finding Finance Accounting Computers & IT Production Quality Employment Health & Safety

Are the problems facing SMEs in your Country similar? 3. UK BUSINESS ADVISER’S PROFILE Detailed analysis of the IBA Survey showed the much greater importance of the financial and marketing aspects of business compared with the personnel and production issues. This emphasises the need for Business Advisers with an all-round approach to the Client’s problems, combining an understanding of “money and markets” rather than a series of independent specialists. These services must be delivered in a way that is easy for the Client to understand and implement – ideally with ongoing help from a Business Adviser acting as a Business Mentor – on a chargeable professional basis once the relationship has been established. It is no use writing thick reports and leaving them for the Client to implement! On the contrary Clients need to be able to contact their usual Business Adviser or Mentor daytime or evening, 7 days a week, when problems arise – so the business support organisation and their means of communication must recognise this. We have found that the key factors in a successful Business Adviser, Counsellor or Mentor are as follows: • • •

business management training business management experience business advisory training

• business advisory experience • continuing professional development • code of conduct - “Client first” I am convinced that IBA is a model for professional accreditation of Small Business Advisers that can be applied in many other parts of the world. The success of IBA Southern Africa is an excellent example. Their members are now being used extensively by the South African Banking Council in the SIZANINI Project to stimulate small business start-ups with microfinance linked to an accredited business mentor. I now have a vision of a global network of professional business advisers, consultants, counsellors, mentors & trainers helping small businesses around the world – an International Association of Small Business Advisers - IASBA. 4. OBJECTIVES OF IASBA •

Help SMEs reach global markets

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Help SMEs in developing Countries

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Exchange ideas and best practice

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Facilitate world-wide networking

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Promote the profession world-wide

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Uphold professional standards

2. A GLOBAL MARKET FOR SMEs? The problems are similar, the help they need is the same but the situation in the world is changing. Instead of being a local market or a regional market, a large number of SMEs now need to look at a global market and we should be doing something to help them. I believe practitioners need a more global view and this organisation is well placed to help. •

Home town market

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Local District market

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Regional market

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National market

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Continental market

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Multi-national market

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Global market

3. GLOBAL SUPPORT FOR SMEs We have found that UK small businesses interested in expanding globally benefit from a direct contact with an experienced Small Business Adviser in their target market. Given an effective matching process, the overseas Adviser could guide UK small businesses on the local culture and customer needs and also signpost them to appropriate routes to potential markets – and vice versa. HOME COUNTRY • • •

SME identifies a potential market Adviser checks published data Adviser needs foreign knowledge

• Check on IASBA database FOREIGN MARKET • • •

Identify an Adviser with the experience “Home” Adviser links to “foreign” Adviser who researches the new market SME is helped to find the best way in

4. DEVELOPING COUNTRIES • • • • • •

SMEs are vital for economic growth Banks are reluctant to finance SMEs How to assist business start-ups? How to stimulate growth? How to improve profitability? How to improve survival?

5. MATCHING EXPERTISE TO NEEDS Those members of this Institute who have worked overseas have shown that their extensive UK experience of small business start-up and growth can be applied successfully in emerging economies and developing countries around the world. There is however a problem matching their needs to the range of expertise - and to the available funding for such projects. EXPERTISE: • industry expertise • technical skills • support experience • overseas work exp. • language skills help • freedom to travel • not too expensive! NEEDED BY: • Governments • Aid Agencies • Trade Groups • Banks & Funds • New Investors • Entrepreneurs • Growing SMEs 6. IASBA WEB SITE – PROPOSED PUBLIC AREA • • • • •

Mission , Aims & Objectives International coverage to date Small Business Enquiry On-line Small Business Adviser Criteria Business Support Networks

• •

Frequently asked questions Feedback information to IASBA

7. IASBA WEB SITE – REGISTERED USERS • • • • • • •

New Opportunities for Registered Advisers Useful Web Sites for SME Advisers Major SME Events - Global Calendar SME Publications & Research Work SME & Entrepreneurship Programs SME Management Tools +Info Sources Members’ Open Discussion Forum

8. PROFESSIONAL INSTITUTES The proposed International Association of Small Business Advisers would be linked to all the relevant professional Institutes like IBA in the UK, Ireland and South Africa, the Australian Institute of Enterprise Facilitators, the Canadian Institute of Small Business Counsellors and others to come. We need to identify as soon as possible the equivalent bodies in other regions of the world that believe in the same basic principles of “professionalism”:9. PROFESSIONALISM CRITERIA • • • • • • •

Adequate training and experience Full membership of a relevant Institute Committed to a Code of Practice Committed to CPD programmes Covered by Prof. Indemnity Insurance Holds a Practising Certificate or equal Good contacts for networking

10. PROFESSIONAL INSTITUTE MEMBERSHIP CRITERIA 10.1 Comprehensive Training - a comprehensive range of relevant training is required to complement prior experience, before any attempt is made to advise clients. Suitable courses are organised or approved by the professional Institutes. 10.2 Substantial experience - at least 5 years relevant business management or technical experience with evidence of satisfactory performance. 10.3 Continuing Professional Development - evidence of completion of a specified minimum number of hours per year on relevant courses, workshops, seminars and private study to meet identified personal development needs. 10.4 Code of Conduct - personal commitment to a Code of Conduct which requires fairness, integrity, confidentiality and objective professional standards – all subject to a detailed Disciplinary Procedure. 10.5 Peer Assessment of Knowledge and Ability - detailed evaluation by senior members of the profession who know what it takes to meet the professional criteria for knowledge and competence. 10.6 Professional Independence

- requires the client’s interest to be paramount and not affected by any commercial or pecuniary benefit of the individual or his/her employer and also requires declaration of any conflict of interest. 10.7 Professional Indemnity Insurance - an undertaking to be covered by suitable professional indemnity and public liability insurance either individually through an approved policy or collectively through their organisation’s policy. 10.8 Legal Advisory Service - access to a 24 hour legal advisory service capable of advising on both private and business topics. 10.9 Networking Opportunities - easy participation in local Branch Meetings of like-minded people serving the same sector, with the opportunity to exchange best practice, keep up to date with developments and facilitate referrals. 10.10 Professional Magazines & Newsletters regular Institute magazines and newsletters provide independent news and information on major issues that affect the profession and their clients 10.11 National & Regional Conferences & Seminars - opportunity to attend relevant events which help to inform and update delegates on the latest developments in the sector and the exchange of best practice. 10.12 Designatory Letters - professional qualifications are widely recognised by both employers and customers as an indication of reliable accreditation coupled with independent arbitration in the unlikely event of a dispute. 10.13 Practising Certificates - a comprehensive independent certification of prior experience, training, competence, performance, continuing professional development and insurance cover. 2. PROPOSED IASBA REGISTRATION • Registration FREE for 2 years • Open to MIBAs, FIBAs or equivalent • Relevant Institutes as an Advisory Board • Individual Advisers as Registered Associates • Code of Practice, Model Terms & Conditions etc. • Annual ICSB World Conference Track Full membership of a relevant professional Institute signifies both the achievement of widely recognised standards and a personal commitment to the following principles and obviously, not all would necessarily be either relevant or possible in less developed economies, but an attempt should be made to encompass as many as possible. 3. IASBA CONTACT DETAILS • • • •

Websites: www.iasba.com (open) www.iasba.org (closed) +www.smallbusinessadvisers.org (linked) +www.smallbusinessadvisors.org (linked)

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E-mail: [email protected] Tel: +44 - 1423 - 879898 Fax: +44 - 1423 - 870025 PO Box 888, Harrogate HG2 8UH, UK

4. POSTSCRIPT Last year I planned a round the world tour to enable participation in the International Council for Small Business World Conference in Brisbane. On the way there and back I was able to visit Business Support Organisations and meet key personnel in the SME Support Sectors in Toronto, Edmonton and Vancouver in Canada, in Auckland and Wellington, New Zealand, in Brisbane and Perth, Australia and finally Johannesburg and Cape Town, South Africa. At every point I found similar organisation structures to those which we have had in recent years in the UK - with many of the associated aspirations and problems. They all recognise the importance of raising quality standards, improving professional development and enhancing networking opportunities. They envy the nationwide membership that we have achieved in the UK, when comparable organisations in Australia and Canada have only 100 - 300 members. There was particular interest in New Zealand where the Chambers of Commerce, the Economic Development Units, the Enterprise Agencies, Business in the Community and the Government Information Service are all competing to offer clients a wide range of similar overlapping services. They are keen to form a professional body modelled on IBA. My dream of helping small businesses through a global network of professional business advisers was very strongly supported by all of the organisations I met. The International Council for Small Business Board of Directors officially endorsed it. In the UK, I have had positive interest from David Irwin as Chief Executive of the new UK Small Business Service and from Edie Purdie, the Assistant Director responsible for EU and International Affairs affecting Small Business. Professor Allan Gibb, now a Fellow of the Institute, has also endorsed my vision and offered his support - along with our Vice President, Professor Ken O’Neill, who has helped me to flesh out the concepts. To coin a phrase, "I have a dream" helping small businesses through a global network of professional business advisers - via the Internet of course. I ask for your views, your support and your publicity for this vision. Brian L Dunsby.