1. The SMEs Idea Generation:
Should you start the SMEs or Not ?
Prof. (Dr.) Kao Kveng Hong
Ph.D., D.Litt., D.Sc.
Chapter-8

2. Overview Topic
• Why need to start SMEs ?
• How to estimate SMEs start up?
• Decision to starting the SMEs?

3. Why need to start SMEs?
អត្ថប្រយោជន៍​ដែល​អនកនឹង​ទទួលបាន​យៅយេល​ដែល​អនក​យ្វើ​ជា​ម្ចា ស់​អាជីវកម្ម ​ផ្ទា ល់ ម្ចនែូចជា​៖
• ប្បាក់ចំណូ ល​ម្ិន​កំណត្់
​យៅយេល​ដែល​អនក​យ្វើការ​ឱ្យ​ អនកែទទ ប្បាក់ចំណូ ល​ររស់​អនក​ប្ត្ូវបាន​កប្ម្ិត្​យៅតាម្​រចនា​សម្ព័នធ​ប្បាក់ដែ​ដែល​ អនក​យ្វើ​។ រ៉ុដនែ​ការយ្វើ​ជា​ម្ចា ស់​អាជីវកម្ម អនក​នឹង​ម្ចន​ប្បាក់​ចំណូ ល​ម្ិន
កំណត្់​។ ប្បាក់ចំណូ ល​ររស់​អនក​ប្ត្ូវ​បាន​ភ្ជា រ់​យៅ​នឹង​កប្ម្ិត្​ការងារ​និង​ភ្ជេ​ទចនប្រឌិត្​ដែល​អនក​អាច​យប្រើ​វា​យៅ​ជា​ការផ្សេវផ្ាយ​និង​ការវិវត្ែន៍​ទន​ផ្លិត្ផ្ល យសវាកម្ម ឬ​គំណិត្​ររស់​អនក​
។ ម្ិនដម្ន​រាល់​អាជីវកម្ម​ត្ូចៗ​ស៉ុទធដត្​អាច​រក​ប្បាក់ចំណូ ល​បាន​យនាោះ​យទ ដែល​យនោះ​គឺជា​ហានិភ័យ​ម្ួយ​ដែល​អាជីវករ​ប្គរ់រូរ​គួរដត្​ែឹង រ៉ុដនែ​ប្រសិនយរើ​អនក​អាច​យ្វើឱ្យ​អាជីវកម្ម​ររស់​អនក​
ែំយណើរការបាន យនាោះ​អនកនឹង​ដលង​ែវល់​េី​យរឿង​ប្បាក់ចំណូ ល​ដែល​ប្ត្ូវបាន​កំណត្់​យោយ​យៅហាវ យនាយ​យទៀត្យ ើយ​។
• ស៉ុវត្ថិភ្ជេ​ការងារ​
យៅយេល​យសែឋកិចា​ធ្លា ក់​ច៉ុោះ ​គឺ​ជា​យេល​ដែល​អប្តា​អនកគ្មម នការងារ​យ្វើ​យកើនយ ើង​។ ការយ្វើ​ជា​ម្ចា ស់​អាជីវកម្ម​ផ្ទា ល់​អាច​ធ្លនា​ស៉ុវត្ថិភ្ជេ​ការងារ​ររស់​អនក​ ។ យរើយ ោះរីជា​ម្ចា ស់​អាជីវកម្ម​ប្ត្ូវ
ែវល់​េី​រញ្ហា ​យសែឋកិចា និង​ប្ត្ូវ​ប្រឈម្ម្៉ុែ​នឹង​ការយ ើង​ច៉ុោះ​ទន​យសែឋកិចា​ែូច​អនក​ែទទ​ក៏េិត្ដម្ន រ៉ុដនែ​អនក​ម្ិនចំបាច់​ែវល់​េី​ការ​ប្ត្ូវយគ​យែញ​យចញ​ឬ​រញ្ឈរ់​ការងារ​ជា​រយ្ែ ោះអាសនន​យនាោះ​យទ
។​
•

4. Why need to start SMEs?
• យសរីភ្ជេ​កនុង​ការយរៀរចំ​យេលយវលា
•
ការយ្វើ​ជា​ម្ចា ស់​អាជីវកម្ម អនក​អាច​រីករាយ​នឹង​ការ​ម្ចន​កប្ម្ិត្​យសរីភ្ជេ​ែពស់​កនុង​ការយរៀរចំ​យេលយវលា​ររស់​អនក​ជាង​យេល​ដែល​អនក​យ្វើការ​ឱ្យ​អនកែទទ​។ អនក​អាច​ចំ្យ​យេល​ររស់​អនក​យៅ
យលើ​ការយកចិត្ែទ៉ុកោក់​យលើ​ទំនួល​ែ៉ុស​ប្ត្ូវ​ និង​កាត្េវកិចា​ផ្ទា ល់​ែាួន​ប្រសិនយរើ​អនក​ចង់​។ អនក​អាច​យ្វើការ​ែល់​យរ់​យប្ៅ​យោយ​ផ្ទ​ស៉ុកភ្ជេ​យៅ​កនុង​ផ្ាោះ​ររស់អនក យ ើយ​អនក​អាច​យប្កាក​េី​យគង​
យឺត្​ជាង​្ម្មតា​រនែិច​យៅ​យេល​ប្េឹក​។ តារាង​យេលយវលា​ររស់​អនក​សថិត្​កនុង​ក្ែ រ់ទែ​ររស់​អនក យ ើយ​អនក​អាច​យ្វើការ​យៅ​តាម្​យេលយវលា​ររស់​អនក​។
• ការប្គរ់ប្គង​ការងារ
ការយ្វើ​ជា​ម្ចា ស់​អាជីវកម្ម អនក​អាច​យគចយចញ​េី​ភ្ជេ​តានត្ឹង (​យ្សែ​ស​) ទន​យគ្មលការណ៍​កនុងកា​រិល័យ​។ យោយសារ​ដត្​អនក​គឺជា​ម្ន៉ុសស​ដែល​ម្ចន​ត្ំដណង​្ំជាងយគ​កនុង​ប្កុម្ ៉ុន អនក​ម្ិន​
ចំបាច់​ប្េួយបារម្ភ​េី​ការេាោម្​សដម្ែង​យៅម្៉ុែ​ម្ិត្ែ​រួម្​ការងារ ឬ​ការ​ដអរអរ​ថ្នន ក់យលើ​ររស់​អនកយនាោះ​យទ​។ គ្មម ន​កងវល់​ ំងអស់យនោះ អនក​អាច​ចំ្យ​ការយកចិត្ែទ៉ុកោក់រ​រស់​អនក​ ំង​
ប្សុង​យៅយលើ​ការវិវត្ែន៍​ររស់​ប្កុម្ ៉ុន និង​យ្វើឱ្យ​ផ្លិត្ផ្ល​ឬ​យសវាកម្ម​ររស់​អនក​កាន់ដត្​ប្រយសើរ​យ ើង​។

5. Basilisa’s compelling
reasons to do business Enterprise:
CRISIS + FAMILY SURVIVAL + FAMILY
College Drop-out’s compelling reasons:
• Regain the trust of her parents
• Prove her worth among her peers
Jay Aldeguer’s 5 compelling reasons:
• Transforming idea into reality
• Augment school allowance from parents

6. • Saw a gap in the souvenir industry
• Help employees achieve their own
goals
• Provide security for his children

7. Social Entrepreneurs

8. Rags2Riches
• Poor women living in garbage dump in the
Philippines earning just 1,200 riels a day
making rags from scrap cloth.
• 8 young professionals got together to help
the women through good product designs
and marketing the products.
• In 4 years, Rags2Riches has supported 400
women, recycled 510 tons of scrap cloth,
and gave each woman income of $9 per
day.

10. Sri Lanka: Tea Bag Manufacturer

11. RED PANDA EXPRESS FOOD KIOSK

12. Roland Hortaleza - SPLASH
• Talking to customers Roland Hortaleza
found out there was steady demand
for acetone and nail polish-removing
solvents. With just $300 he repackaged
acetone. When hair spray became “in”
he developed his own product.
• Today his company Splash is one of the
biggest personal care companies in the
Philippines.

13. Roland Hortaleza - Splash Corp.

14. Bright ideas run the world. Can you
imagine a world now without light
bulbs, airplanes, cars, mobile
phones, computers and Internet?
Bright ideas for business can be
generated by Drivers of
Business Opportunity:
1. Perspiration (Competence) – this
driver of opportunity comes from your
talents, skills or hobbies.

15. GJ and Maricel Jimenez

16. BANAPPLE
• Started with sampling to friends and
officemates for free pies and cakes baked
in their kitchen.
• Soon GJ, the husband was selling to friends
and officemates and orders kept growing.
He then resigned from his job to focus on
the business.
• Established first bakeshop called Banapple
in 2007. Today it has 9 branches and very
successful.

19. Nicole Whisenhunt
 Started as a hobby making chain
necklaces in 2002.
 Initially sold the necklaces to classmates
in college. In 2009, started a company
using new and better product designs.
 Today, distributes the products in 18
locations including the Philippines,
Singapore, Spain, New York, and Las Vegas.

20. Boni Comandante – Buhi Worldwide
• Boni Comandante was amazed when
the fish he placed in an open cooler
without water was still alive after
several hours. He researched about
this marvel and has since developed a
technique that puts fish to sleep while
being transported without water.
• His method has become a big thing in
the live fish transportation market.

21. Boni Comandante - Buhi Worldwide

22. Nina Halos – Vital N
• Nina Halos addressed the problem of
food shortage by developing the
world’s first safe and bacteria-based
biofertilizer, Vital N. It is environment-
friendly, economical, and guarantees
higher yield.
• Her company Amichem Corporation is
the first biofertilizer manufacturer in
the world.

23. Nina Halos – Amichem Corp.

24. Examples of Bright Ideas Turned to
Business
• Water-refilling stations –
although good filtration, iron
pipes are dilapidated.
• Bottled iced tea – alternative
to high-calorie soda drinks
• Events organizer – suits busy
hosts who want hassle-free
party.

25. Group Work
Write them now! It’s a start for your
own Enterprises.
What are your bright ideas that you can
turn into a product/service that will
add value to your target end-user?
Focus now on which of these ideas you
love to do and what you’re good at.

26. Franchise Business
Franchise Business

27. Franchising in the Philippines
• started 1995, 1000 brands
NOW
• 1 billion pesos in taxes.
• 90% success rate vs. 25% in
retailing industry
• 1 million Filipinos
employed

28. What is Niche Market ?
• A niche market: is the subset of the market on
which a specific product is focused. The
market niche defines the product features
aimed at satisfying specific market needs, as
well as the price range, production quality and
the demographics that is intended to impact.
It is also a small market segment. For example,
sports channels like STAR Sports, ESPN, STAR
Cricket, and Fox Sports target a niche of sports
enthusiasts.

29. What’s a niche market?
Advantage of niche market is you do
not compete with existing players
especially if you are just starting. No
need to play the lowest price game just
to attract customers.
• Restaurant in Luzon Shell Station

30. 7 Steps for Defining Niche Market
• 1. Make a wish list.
With whom do you want to do business? Be as specific as you can. Identify the geographic range and
the types of businesses or customers you want your business to target.
• 2. Focus.
Clarify what you want to sell, remembering that a) you can’t be all things to all people and b) smaller
is bigger. Your niche isn't the same as the field in which you work. For example, a Identify the most
important lessons you've learned in life.
• 3. Describe the customer’s worldview.
The best way to do this is to talk to prospective customers and identify their main concerns.
• 4. Synthesize.
• At this stage, your niche should begin to take shape as your ideas and the client’s needs and wants
coalesce to create something new.
• 5. Evaluate.
• Now it’s time to evaluate your proposed product or service against the five criteria in Step 4.
Perhaps you’ll find that the niche you had in mind requires more business travel than you’re ready
for. That means it doesn’t fulfill one of the above criteria—it won’t take you where you want to
go. So scrap it, and move on to the next idea.
• 6. Test.
• Once you have a match between niche and product, test-market it. “Give people an opportunity
to buy your product or service—not just theoretically but actually putting it out there,”
• 7. Go for it!
• It’s time to implement your idea. For many entrepreneurs, this is the most difficult stage. But fear
not: If you did your homework, entering the market will be a calculated risk, not just a gamble.

32. Kenneth Cobonpue – Interior Crafts
• After his studies, Kenneth returned home
to manage Interior Crafts, the family
furniture design and manufacturing firm.
Kenneth added his own style by combining
modern design with natural fibers and
materials as alternative to western design.
• Today his clients include Angelina Jolie and
Brad Pitt and his creations were featured in
the movie Ocean’s Thirteen.

33. Kenneth Cobonpue - Interior Crafts

34. Consultant - Naturalife Asia
• Organic health supplements products
1. Single ingredient – one plant
2. Multiple ingredients – many
plants
• Market: Persons vs. Companies
• Client company, AIMG, now biggest
buyer of Naturalife Asia products in
the whole world.

35. How to differentiate your Business
SMEs?

36. MAGNIFY
How do you MAGNIFY something that is
already in the market?
• ADDING INGREDIENTS/MORE
VALUE – toothpaste with flouride
• STRENGTHENING – doublestitched
denim pants
• ENLARGING/THICKENING –
LCD TV

37. MINIFY
HOW DO YOU MINIFY products that have
been bought regularly?
• MAKING SMALLER – thin mobile phones
• REDUCING/SHORTENING/MAKING FASTER
– Fedex overnight delivery
• Other ways to MINIFY –
OMIT/LIGHTEN – Coke zero, Diet colas
SPLIT UP – 2- door refrigerator/freezer

38. SUBSTITUTE
HOW DO YOU SUBSTITUTE?
USE ANOTHER INGREDIENT/MATERIAL
– crown of softdrink bottle replaced
corks
USE ANOTHER PROCESS – cook seafood
balls in seafood broth not oil.
THINK “WHO OR WHERE ELSE?” -
outsourcing

39. S = P x Q x F
SALES equals
PRICE x QUANTITY x FREQUENCY
Mr. L – an affordable price in a steady
quantity and on a regular frequency
Product: hair clips, pins, combs
Price: $1.15 a piece (C market)
Sales: $115 per day
Store: 100
How to Estimate the Market Volume ?

40. Tess Ngan Tian – LOTS’A PIZZA
Sales Estimation
Daily traffic count 5,000
X 0.03 (3%)
Potential customers 150
Average spending per X 3.39
customer (in dollars)
Estimated daily sales (dollars) 508.60
Number of foodcarts in area ÷ 3
LOTS’A PIZZA share of wallet $169.55
Should Start the Enterprises or not ?

41. Tess Ngan Tian – LOTS’A PIZZA

42. Happy Ongpauco and Allana Montelibano
– Boutique Bed/Breakfast
• The two ladies put up The Boutique Bed and
Breakfast, the first luxury bed and breakfast
that offered ultimate personalized services,
so personalized guests can choose room
scents, etc.
• By giving discriminating customers what
they wanted, Happy and Allana added value
to their rooms and distinguished themselves
from other hotels in Tagaytay.

43. Happy Ongpauco and Allana Montelibano
- The Boutique

44. • Toothpaste 1: For parents who want
whiter teeth and prevents decay to
have a strong teeth in old age.
• Toothpaste 2: With nice kiddie flavor
and colorful packing so for kids.
• Toothpaste 3: Guarantees fresh breath
so for 2 young adults.
“FIT” THAT CUSTOMERS
WERE LOOKING FOR IN RESTAURANT:

45. Shell Station in South Expressway

46. I first classified (segmented) who
my Customers were:
• Busy commuter transients traveling
along the local expressway.
• Middle-class neighborhood residents
along the traverse of expressway.
• Leisure/vacation travelers on the way
to the South Luzon provinces.

47. I then asked myself that if they
are regular travelers, what are
their needs?
• Quick-service meal
• Food on the Commute
• Pambaon (school, vacation)
• Pasalubong

48. Knowing my competition and what
they’re offering, I took the challenge,
why buy from me?
• Fill hunger
• Lessen anxiety
• Save time and energy – too tired to cook
• Convenience – gas and eat at one place
• Comfort – cool and clean rest room
• Curious – recommended
• Save money – too expensive at the malls
• A change – tired of usual fastfoods

49. Eventual FIT for restaurant is any
or all of the following:
• Quick-service Filipino meal
• Food ready to eat
or heat
• Not fast food
• Your kitchen away
from home

50. Barbecue
• Dine- in
• Snacks on the commute
• Vacation foods/Kid’s food
Take-out meals
• Hurried and tired commuting workers who have
no time to cook but still want to eat at home
• Gift for family/Food for vacation trip
• School/ home breakfast meal
Does the PRODUCT FIT what my customers are
looking for?