Small Business Credit Cards – Should You Use Them or Not?

As an owner of a small business it is quite likely that you would have been at the receiving end of numerous credit card offers for running your business. It is worthwhile to consider the utility of credit cards for obtaining a line of credit and compare it with others available to you. Interestingly, credit cards have already emerged as the single biggest form of finance for small businesses. Credit cards meant for business are extremely convenient way for the business owner to access short term financing to increase the purchasing power of the company. However, a certain amount of care must be exercised because there is a cost associated and various conditions apply.

What Are Small Business Credit Cards?

Credit cards aimed at owners of small businesses are very similar to that for individuals. They allow the business owner access to credit that can be revolved; of course with a set limit and also permit cash withdrawals. The reasons why revolving credit on a credit card is handy are because the limit can be used repeatedly as the dues are cleared off and access to the credit can be enjoyed without providing any collateral.

How Are Credit Cards Different from Lines of Credit?

Many issuers of business credit cards such as gemvisa.co.nz market their offerings as alternatives to conventional lines of credit that are available from commercial banks. However, among the key differences between the two are that credit cards have a revolving credit whereas the amount of credit is fixed in a line of credit. This essentially means that with a credit card the amount available keeps on being replenished to the extent the card dues are paid back. With a line of credit, the limit gets exhausted after you use it and the only way to replenish it is to apply to the bank for a fresh line of credit.

However, typically credit card limits are relatively small when compared to a bank’s line of credit and thus are useful for small value purchases and not the typical big-ticket items such as machinery and equipment. Since the line of credit is almost always secured by the items purchased the interest tends to be lower than that of credit cards that provide credit that is unsecured and represent a bigger risk to the card issuer.

The Advantages of Business Credit Cards

There are a number of advantages of using a business credit card. Business owners who have no credit history may not be able to get a bank loan or a line of credit while a credit card will almost always be available. It is also very easy to use a credit card and they can be used instantly at a number of places where it could prove very cumbersome to write out a check or make an electronic transfer of funds from your bank account. With a credit card, users also get a financial cushion in terms of the extended credit available that comes in very useful when sales are somewhat slow and cash at hand is not adequate. Credit cards are also a very easy way of transacting online with suppliers and contractors.

Easier Money Management

When you use credit cards, you will not only receive a monthly statement but also a summary at the end of the year that is a great help to accountants to properly record and classify financial transactions. These documents make it easier for the business owner to keep track of expenses and reduce the internal paperwork. Moreover almost all credit card issuers offer online tools that enable holders of business credit cards to manage their account properly. Credit card holders can also find transacting a rewarding process as they can use the loyalty points for various product purchases as well as various discounts and offers that can save quite a bit of money.

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Mobile Consumers and Responsive Designs: Online, Smart & Friendly

Social media is changing the world of marketing on a tremendous scale. According to ZenithOptimedia forecast, we will witness a constant 15% growth on an annual scale between 2014 and 2017. Let’s take a look at how it applies to mobile consumers…

This assumption is more than reasonable. We are witnessing applied actions of smart algorithms that are interacting with us on a daily basis. They are persistent in following profiles and are sorting and delivering information according to our search results in a matter of a few nanoseconds. Our Facebook profiles, Google search, everything is monitored and evaluated, for the purpose to serve us, the consumers, or annoy us.

That is the very core of our issue, because in the year 2015 there are a few actions that should be considered a standard, nevertheless we are still witnessing poor implementations of even major global companies.

Online

A seamlessly never-ending debate about Conversion Rate Optimization vs. Search Engine Optimization for Return On Investment only confirms that we are yet to comprehend the power of Data. The obvious fact is that constant analysis through applied implementation will eventually deliver a positive result.

You’ve certainly stumbled upon opening windows that are trying to convince you to stay on the website and continue with your read. That is a part of the CRO strategy. The fact that you’ve actually managed to find the initial website is the result of the SEO strategy. They are both well proven methods, and we are all aware that the psychology of marketing is based on the firm but almost incomprehensible grounds, and there is one factor that will always be easily misread: the human factor.

Never leave out that tricky unknown from the equation, and always add at least something that you know to that part, so you can be sure that you will gain positive results. Consumers love being respected, cared for, they will probably refer their friends to you if you insist on providing a good service and you should count on that fact. Make their online experience pleasant, provide them a great product, trusted delivery, and safe and simple method of payment. Scratch beneath that surface of design, and focus on being responsive.

Smart & Friendly

All of our target audiences, no matter the industry that you are dealing with, have one thing in common: they are all computer literate. Pushing a product where it shouldn’t be pushed, missing your core audience, and counting on the fact that you will simply filter large numbers and get a certain percentage that you will convert to clients – that’s an utterly outdated technique.

Always count on the first rule of social media: it is social. People will share ideas, experiences, reviews, and etc. If you insist on spamming million people with your offer for no particular reason, the only thing that you will get is a lot of bad rep. There is a famous case of LiveNation poorly scheduled tweets that should serve in favor of this module, as an example of how not to execute a campaign.

With the help of search engines and our smart phones, we, the consumers, have become a lot smarter. Well, in manner of speaking. Retweeting your embarrassing marketing failure is a matter of one flick of a finger, so think again who you are targeting. If you are targeting me, as a computer literate consumer, I can tell you two things that I’m expecting from your business – be smart, and be friendly.

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3 Benefits of Using Microsoft Lync for Small Businesses

As a small business, two of your most important considerations are efficiency and cost savings. This is where the Microsoft Lync system can step in and make a real-world difference to your business.

The Lync system is an all-encompassing communication system that is up to date with the latest technology and will make all of your inter-office, as well as external communications, much more streamlined and snag-free.

1. HD Video Conferencing

With the growing new-age work trends such as Outsourcing and Work-from-home employees, video conferencing has become a major part of our new business culture. Instead of trying to bring everyone together in one location, it is so much easier to just organise a video conference and include a range of people, all in the one meeting.

For example with Microsoft Lync, you can include home based employees, outsourcers, suppliers, business partners and even staff working in satellite offices around the world, in the same video conference. Lync is compatible across a broad range of devices and platforms, making it an extremely flexible as well as highly cost effective communications strategy.

2. Scheduling and Organising Conference Calls

With Lync, not only your conference calls can be made in HD, but putting it all together is extremely simple and quick. There is no need for endless emails and phone calls just to set up a video conference and it can be arranged with a simple click of the mouse button or touchpad. Additionally, you can also schedule video conference calls and meetings in advance by simply adding the date and time.

Once you have decided on a date and time for the video conference, all you need to do is create a Lync meeting and you are good to go. Since Outlook is an essential part of the Microsoft family, a virtual conference is automatically setup, the notification for the scheduled meeting will be automatically sent to the participants through email.

At the nominated time for the video conference, attendees just click a button on the screen and they are automatically brought into the conference. You can even share screens, PowerPoint presentations and Word documents, use virtual whiteboards or take control of your computer remotely.

3. Supports Various Platforms

With apps for all mobile devices, as well as Skype and web access, Microsoft Lync is easily integrated across most systems and is really cost effective.

  • Mobile Devices: With mobile apps, employees can use their own mobile devices to join a video conference or to access the other features of the Lync system, such as instant messaging. Thankfully, you don’t even have to own a Windows phone, because Microsoft Lync is compatible with both iOS and Android systems.
  • Web Access: The web app makes it very easy for attendees to join a video conference from their browser, regardless of whether it is a Windows or a Mac. Employees even have access to all of the other Lync features as well, right from their browser.
  • Skype: Since Microsoft now owns Skype and lots of people use Skype, Lync also offers Skype users the ability to join any video conference and use other features that Lync has to offer.

So, if your business could benefit from a high quality, and highly compatible video conferencing communication system, it is worth a look to check from various solutions provider, like iiNet, to position your business for maximum growth.

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4 Tools Every Small Business Should Have

A wise person once said “You are only as good as your tools.” This saying definitely holds water in the business world, where the right tools can increase productivity and improve efficiency and operating procedures. As a small business owner, you should make sure these clever tools are in your company’s toolkit.

Dropbox: Store Documents on the Cloud

Think of Dropbox as the modern-day equivalent of a filing cabinet, an innovative tool which stores a range of files including images, videos, and text documents. Just like a traditional filing cabinet holds documents in cardboard folders, Dropbox uses virtual folders for easy organization. However, its search tool is probably more efficient than your old filing system!

Dropbox uses cloud technology, so you needn’t worry about your documents taking up space on a hard drive, or what might happen if your hardware fails. Dropbox makes your documents accessible from any device, so it’s ideal for small businesses with remote workers. This tool also makes it easy and more eco-friendly for you to share your files with colleagues, clients, or media outlets.

Best of all, basic Dropbox accounts are completely free to use, so they suit those notoriously tight small business budgets. If you need more space for your files, consider upgrading to Dropbox Pro, which has one terabyte of storage space, or Dropbox for Business.

Sage Payment Solutions: Increase Your Payment Options

More than nine out of ten retailers say their customers want a range of payment options, but many stores are reluctant to invest in the necessary infrastructure. With nearly half of retailers noting increased costs for payment technology in the last 18 months, the expense is a significant barrier to adoption. However, online credit card processing options from Sage require no upfront fees, so they’re a great choice for small businesses.

Sage’s handy tool allows you to accept payments from all major credit and debit cards. It also integrates with your existing accounting or ERP software for easy record keeping.

More than half of retailers haven’t adopted new payment technologies because they’re worried about security, but Sage’s Payment Card Industry certification, PIN transaction security, and merchant validation/certification should give you peace of mind. The Sage team also handles things like loss prevention, charge back assistance, and underwriting in house, so there’s less for your small business team to think about.

bMobilized: Make Your Website Mobile

In 2014, Internet use on mobile devices exceeded browsing from personal computers for the first time. This seismic shift reminded business owners of the importance of making their websites mobile-friendly. If you still haven’t developed a mobile site, bMobilized can make the conversion process easy. It’s already created more than 3.2 million mobile sites, and yours could be next.

Its Automatic Content Analysis promises to make your website mobile-ready in mere minutes. If you’re not comfortable with web design, use an existing mobile web template. Or play around with customizable options to make your site more unique. Once you’re done, bMobilized claims your site will look great on more than 14,000 different smartphones and tablets. A 14-day free trial lets you get a feel for the bMobilized tool before committing.

Wistia: Video Marketing Made Easy

Marketing is crucial to the success of any small business. It’s key for creating awareness and generating buzz and brand loyalty. Seven out of ten marketers say that video offers better conversions than any other marketing medium, so it’s understandable that many small businesses are switching on their cameras.

If you’re entering the world of video marketing, Wistia is an essential tool. It’ll host your videos, add buttons to make them shareable and embeddable to improve their reach, and even turn your videos into Flash and HTML5 versions so they’ll reach more consumers. The video heatmaps are a really intriguing feature, as they’ll show you which parts of each video you post get rewatched, where viewers switch off, and much more. Use this information to constantly improve your video marketing campaigns.

With the tools above at your disposal, you can improve a variety of facets of your small business.

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Top Ecommerce Tips To Implement For Better Online Customer Experience

Quality goods are no longer sufficient to stay competitive in the digital era. Nowadays consumers have many buying options to choose from and tend to stay loyal to the brands that provide exceptional customer experience. According to Forrester, 73% of consumers would like to buy more where they had a positive customer experience. What exactly you can do to win customers and improve relationships with customers across the entire customer journey? What kind of new tools you can incorporate into your business processes to achieve higher level of customer satisfaction and increased up-selling opportunities? Read on for some Top Ecommerce Tips…

To stay competitive, you should craft strategies taking into account what is trendy and upcoming.

If you are not aware of the emerging trends in the ecommerce field, here are some suggestions to help you revise the basics to achieve superior customer support experience for your online store:

Software for managing online communities

One of the most cost-effective ways of strengthening relations with customers is to build active and supportive community of brand advocates. Online community software solutions can help brands to build and manage their communities online. Such web-based tools, like www.getsatisfaction.com can help you facilitate the conversations between brands and customers, provide a more engaging support experience, build better products reviews, increase SEO and, finally, improve customer loyalty.

Combination of big data and CRM

Another trend to watch for in the ecommerce space are tools that help companies examine the large volumes of data to help them in making data-driven decisions. When taking into consideration customer data, big data refers to large amounts of either transactional data or analytical data. With the help of CRM the information can be structured in various ways for the different purposes: design, pricing decisions or demand forecasting. Ecommerce businesses struggle to make sense of big data because of its volume, the speed in which it should be collected and the great variety of channels it encircles. While big data technology is cheaper due to the open source tools, main spending is connected to CRM implementation to collect and analyze a complex data. The CRM solution is required to have powerful data collection capabilities as well as the ability to get the information from different sources, like bpm’online CRM does.

Multiple sales channels

Nowadays customer browsing is not limited to a single website so ecommerce business owners can consider setting up multiple storefronts to get new clients and better manage customer service. The idea is to welcome customers from multiple channels, building sites for the different target audiences.  When online stores are ready to create multiple storefronts, www.shoppingcart1.com can be an example of the software solution that support multiple storefronts.

Free Return

Free shipping has always been appealing for online shoppers. Now free shipping and free return is a proven tactic to turn buyers into repeat customers. Amazon.com was the first store who offered free shipping and return as part of their loyalty program, but in most cases, the consumer still has to pay for return shipping. Offering free return shipping is one of the hottest ecommerce trends, which is becoming popular now among customers. If an online store can offer free returns, it can show the customers not only the confidence about the products, but also the flexibility and great attitude towards customers.

Online shopping has been growing and retailers should look for new reasons to attract shoppers to spend more. As technology continues to rapidly evolve, ecommerce business might employ more sophisticated tools and facilities to make online shopping a lot more efficient and engaging for their customers.

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HR Tech Advances for the New Millennium

Human Resources is an evolving environment that has changed dramatically over the years. In the Industrial Era, HR professionals were around to resolve wage-related issues and to deal directly with unions for labor-dispute problems and compliance requirements. In the 21st Century, the new era of Human Resources brought new challenges for specialists.

Instead of personnel management focusing their attention to unions, they become actively involved in an organization’s decision-making for recruiting and litigation issues. HR professionals of the 21st century have helped with direction and focused on employee management.

Today, in the Information Age, technologies and innovations have changed the way organizations do business and changed business processes. Instead of dedicating manpower to all processes, companies have focused on automating some processes so that their skilled HR professionals can keep up with changes in regards to organizational development by acting as a strategic partner. With new systems, streamlining is possible in many different HR processes.

Here are some of the processes that can be automated for greater efficiency.

Automated Employee Information Systems for Streamlined Workflows

Keeping an up-to-date information system complete with employee profiles and personal details can be a time-consuming process without some form of automation. When you have to manually enter every bit of information or you are updating physical files, it does not only take time, there is also a huge margin for error.

With a comprehensive and automated employee information system, you can streamline information updates and workflows within the organization. According to BambooHR, modern HRIS systems make it easier for both HR departments and employees to access current information, including employment status, personal data, PTO, benefits, hiring checklists, and a multitude of other info.

Track Time Sheets and Paid Time Off Without Relying on Spreadsheets

Spreadsheets take a great deal of time to create and can be extremely difficult to read and analyze. Instead of tracking and validating the time sheets that are submitted by your employees manually, a process which can be inefficient and mundane, you should focus on the benefits of automating submission and approvals.

You can collect data electronically, validate it, store the data, and then submit this information to payroll so that specialists never have to manually enter data that could lead to payroll errors. In this way, HR programs can significantly simplify your time sheets and payroll processes.

Automating the Hiring Process

When managers feel like they are understaffed, they will go to the HR department and request that they hire new employees so that the organization can lighten the workload on their personnel. Unfortunately, it can cost about $8 an hour per employee to complete the entire recruitment process.

Human Resources Information Systems can now automate much of the process so that specialists and managers are always in the loop. Managers can review job listings, see where they are posted, and know where they are at in the process as well.

Managing Time Off Requests

Most HR managers know just how much time it can take to process a time-off request. As heaps of papers fill their desks, they must review available hours and then see what staffing issues exist. By automating time off, employees can electronically send their request and see if the time is available. This process also makes it much easier to track and manage whenever an employee is on leave.

The purpose of automating processes in HR with current technology is to minimize the chance of error while maximizing the efficiency in the department. With the right systems, HR professionals will have the time to focus on areas of organizational development that they normally would have to put off.

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5 Effective Ways To Promote Your Home Business

For those who have made the leap into self employment, and are starting a business from home, it can be scary to know where to start. Even if you have been working at home for a while, and your business is more developed, you will still need to promote it to stay on top of your game. Promoting your home based business may seem like an overwhelming task, especially if you are working completely alone, however there are many ways you can effectively, and often simply, promote yourself and your business. We share out top 5 promotional secrets for success:

Start a blog

1. The best way of promoting your business to potential customers is to get up front and personal. Sharing your thoughts, opinions, tips, or news through blog content is the perfect way to get started. All you need is a good host, some solid tips and advice, and a unique approach to your content.

Social Media

2. Now that mobile media time is greater than desktop, using free mobile based tools like social media is a great way to reach customers. Social media sites like Twitter, Facebook, LinkedIn, and others, are the perfect platform for sending your message to the busy butterflies this world has become. Being a social butterfly can certainly pay off in the business world. With the potential of reaching out to millions of users across the globe, social media is a no brainer.

Local Marketing

3. Local marketing is even more important now that search engines have become more advanced. Whether online off offline, it’s crucial to be advertising yourself where your customers want to find you. If you have a website, that means having your NAP (name, address, phone number) details clearly displayed and your business added to popular local directories, such as Yelp and Google Places. If you’re promoting yourself offline, you will want to take a similar approach, placing adverts in local establishments with clear contact details, and passing out business cards and flyers left right and center. Fastprint are perfect if you’re looking for quality custom leaflet flyers at low prices.

Join Local Network

4. Get involved in some local network marketing and advertising. Being famous isn’t just for celebrities and musicians. Network with local newspapers, news stations, magazines and blogs to start your journey to fame. Networking in the right circles can open up many doors, especially if you are available to offer something relevant and interesting in return. Another great way of networking is by exhibiting at trade shows and events. Just make sure you have an eye-catching exhibition stand design to attract potential contacts.

Freebie

5. Everyone loves a freebie. If your business is product based, then offering giveaways and promotions online is a great way of promoting your business. It’s also a great way of enhancing your social media engagement and reach, which will subsequently result in more people becoming aware of your products or services. Offering samples is another great way of promoting your products. Reach out to some influential bloggers or journalists in your area or niche, and offer sample products to test. Not only are you generating more awareness for your business, but you may also get a mention or some press of the back of it. Win win.

There are plenty of ways that you can promote your home business, and these are only just a few. It is not an easy task making ends meet through self-employment, but there is a good chance that if you follow the advice from this article, and use it to inspire you to try out other ways of promoting your business, you can succeed.

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Debunking the Over-Hype of BYOD

BYOD: A movement that streamlined communications and empowered employees. Well, perhaps not.

We believe that Bring Your Own Device may well go down in history as one of the most overused and overhyped terms in business jargon history. And here we explain why, and beyond this… what may be next for the workplace that is truly forward-thinking and harnessing the innovations of tomorrow.

Getting to the surprisingly simple nitty gritty of most BYOD schemes

Let’s not talk in corporate-filled jargon, and let’s define what most BYOD schemes really are and the (rather few, and rather basic) tasks that they are used for. To this end, for the most part, the majority of BOYD schemes simply consist of: always on-the-go and accessible emails, the use of and sharing of documents (wherever and whenever), the partaking in the odd conference call or two and communication that is made lightning fast (with the help of an IM program).

When all’s said and done this isn’t the technology harnessing of the next century. This is business as usual. Only always on the go. This is why it’s time to debunk the hype of BYOD and recognize it for what it is.

Goodbye BYOB. Hello CYOD slash EOD hybrid

It’s predicted by trusted industry insight body, Gartner, that by 2020 there’ll be in excess of 60% of the workforce (across the world, no less) that use their own device for at least some work tasks. However this isn’t the same as saying that 60% of people will be part of a fully-fledged BYOD scheme. And what’s more it seems that from the very start that BOYD neglected to truly fulfil its promise. Most specifically it was a movement that appeared to completely neglect key enterprise examples and industry segments: from defence based bodies through to construction companies, BYOD offered little and delivered even less, with specialist applications and capabilities by such industries seriously lacking on what were, after all, just personal devices.

Specialized enterprise devices

A further complication to the traditional BYOD scene is the range of devices that any one enterprise can support. And with new models coming from Apple, Samsung and every brand in-between on an ever more frequent basis companies are finding it increasingly difficult to keep up with a list of allowed devices that is even half way up-to-date.

The future: CYOD: Choose your own device / EOD: Enterprise Owned Device

CYOD / EOD schemes promise to overcome many of the limitations of the standard BYOD scheme, and what’s more specialist enterprise devices are also promising much in the way of improved security. Contrary to BYOD schemes in which, amongst other security holes, defy email security best practices to no end.

For the industry where specialist devices are required (such as upon the average construction site, where workers could benefit from specialist wireless communication provided through robust devices) CYOD / EOD seems set to truly meet their needs in a way that BYOD never could.

Stop focusing upon the over-hyped BYOD scene, and concentrate on what CYOD and EOD can bring to the workplace of tomorrow.

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The Opportunity for Irish SME’s

The Irish economy has come through an economic crisis of unprecedented proportions since 2007, but over the past couple of years it has started to emerge with a level of vigour and momentum that few would have predicted. The recovery that effectively commenced during 2014 has been sustained and built upon in 2015. The external trade performance continues to be strong; manufacturing activity is vibrant; the labour market is continuing to improve; the public finances are getting steadily better; construction activity is bouncing back from a very low base; tourism is doing very well with the number of inward visitors to the country growing steadily; and consumer spending is gaining strength. In other words the economic recovery is becoming more broadly based and this trend looks set to continue. Over the next couple of years GDP looks capable of expanding at an annual average rate of around 4%, assuming that there will be no significant external shock.

Ireland has been fortuitous in the sense

that factors outside of the country’s control have developed in a very favourable manner. Two of the country’s main export markets, the US and the UK have been doing well and this has helped insulate the economy from the weakness in the Euro Area; the euro has fallen significantly against the dollar and sterling; and oil prices have fallen sharply. In addition, the domestic policy pursued in relation to the public finances and the banking sector is gradually proving successful. Ireland’s recovery is due to a combination of positive external developments and generally sensible domestic economic policy.

The Employment Imperative

One of the most important areas of the economy is the labour market. From an economic and social perspective, unemployment is an evil that causes severe social problems such as forced emigration and inequality; it imposes a major burden on the Exchequer through the loss of payroll taxes and increased social expenditure; and it represents a loss of potential output in the economy. Consequently, one of the key metrics for success or failure should be the number of people at work in the economy. Ireland is now doing reasonably well on that count. The number of people unemployed declined to 206,500 in August, which represents a decline of 66,800 over the past 2 years, and the unemployment rate stood at 9.5% of the labour force down from a high of 15.2% at the beginning of 2012.The latest employment data from the CSO show that in the second quarter of the year the number of people at work in the economy stood at 1.96 million, which represents an increase of IDA client companies make the following contribution to the Irish economy:

  • They pay €8.5 billion in wages and salaries;
  • They purchase €2.6 billion in materials in the Irish economy;
  • They purchase €11.3 billion in services in the Irish economy;
  • They pay corporation tax of €2.8 billion;
  • They account for €124.5 billion in exports of goods and services; and
  • They engage in total expenditure of €1.4 billion in in-house R&D expenditure.

In summary, IDA supported companies make a very significant economic and financial contribution to Ireland and the potential for further growth is very significant.

In its latest strategic outlook the IDA has set a number of ambitious targets for future FDI.

Specifically, by 2019 it is seeking to achieve the following targets:

  • Direct employment of 209,000 in companies supported by the IDA by 2019;
  • 900 new investments;
  • Grow the portfolio of client companies from 1,195 to 1,350;
  • Win a greater share of investments made by European and Growth Market FDI companies;
  • Win a cumulative €3 billion in new RD&I investment projects, including in-house and collaborative RD & I projects with companies and universities, and encourage 120 additional companies to engage in R&D across the FDI portfolio; and
  • Increase Irish economyexpenditure from €22.4 billion in 2013 to €26.8 billion by 2019

The Growth Potential For The SME Sector

FDI makes a very significant contribution to all aspects of Irish economic and financial wellbeing. It has set ambitious targets for

2019, but based on the long-term track record and recent trends, such targets look eminently achievable provided Ireland preserves its corporation tax status; its focus on supplying a well educated English speaking labour force with other language skills; and preserving a competitive cost environment, where the ability to do business is strong.

The big question for the indigenous Irish economy, which is dominated by Small and Medium Enterprises (SMEs), is the extent to which the growth in FDI can feed into the SME sector to a much greater extent than we have seen in the past.

The SME sector accounts for around 54 per cent of total employment in the Irish economy, and 70 per cent of total private sector employment.

Most people recognize that the re- building of the Irish economy over the coming years will have to depend heavily on the SME sector. This is not to suggest that the multinational sector will not have a role to play, in fact the very opposite is the case, as demonstrated by the recent track record and the targets set by the IDA. However, in an increasing competitive global environment for FDI, indigenous SMEs will have to play an increasingly significant role in the future development of the economy, and particularly in the regional economies that are currently lagging the Greater Dublin area in terms of economic activity and employment creation.

The SME sector is incredibly diverse. It ranges from single person operations to operations with up to 500 employees; and from trout farming, to car sales, to engineering, to IT, and a lot more besides. Despite the wide diversity within the sector the issues facing it are very similar.

Lack of demand

The lack of demand in the economy over the past few years has obviously been the biggest issue. At a more structural level however, it is clear that many SMEs are very good at doing what they do, as in manufacturing a product or providing a service, but they are a lot less good at developing other necessary attributes of the business such as marketing, developing export potential, innovation, and driving efficiencies and economies of scale in the business.

A major challenge for many small Irish companies is to move from Small to Medium to Large. Many lack the capability of completing this business transformation.

Those multinational companies who invest here can play an increasingly important role in developing the indigenous SME sector.

Between 2015 and 2019, the IDA is targeting an increase of 155 extra multinational companies in Ireland, taking direct employment up from  174,488 to 209,000, representing an increase of 34,512 in total FDI employment. Based on IDA employment multiplier, this would result in the creation of an extra 24,158 indirect jobs, taking that total up to 146,158. This would take the total number of jobs supported by IDA sponsored companies up to 355,158 from 296,488 jobs at the moment.

It is estimated that the value of global sourcing by Irish-based multinational companies is around €80 billion, with just €11 billion in services and €2.6 billion in materials sourced in Ireland. A large part of the expenditure on goods and services is likely to be on services such as water, energy and other utilities, which cannot be sourced elsewhere but locally.

Trading potential

Potentially, the multinationals operating in Ireland offer enormous trading potential for indigenous SMEs, and could alleviate the pressure to grow export markets to achieve scale, a process that many Irish companies find very difficult to achieve. However, this is easier said than done.

One difficulty for Irish firms in securing greater trading linkages with multinationals  is the fact that many operate centralised global procurement systems and significant changes to global supply chain management approaches.

To exploit the potential growth emanating from the multinational sector in Ireland SMEs need to achieve a number of attributes. They need to be of sufficient scale to satisfy the requirements of a demanding client base; they need to be efficient in production and priced competitively; they need to be able to comply with multinational procurement systems; they need total quality assurance; they need high quality financial management; they need high quality HR management; they need very strong IT systems and capability; they need top quality customer service systems; and they need to engage in R&D and be as innovative as possible.

All of these attributes are essential if the potential to service a very sophisticated and demanding multinational client is to be realized. Most Irish SMEs are nowhere close to achieving all or even some of those objectives, but they should be given whatever assistance is required to help them move up the value chain. State agencies should provide whatever support and mentoring necessary, but every effort should be made to get FDI companies to help SMEs achieve the objectives. This would be good for the multinationals, the SMEs and the economy in general.

If the necessary attributes were to be achieved and success attained in servicing SMEs, the projected number of indirect jobs supported by FDI companies in 2019 could easily be 75,000 higher than the projected 146,158 jobs.

This clearly is an agenda worth pursuing, because if the Irish SME sector were to achieve success in servicing the FDI sector to the greatest extent possible, it would put them on to a platform from which building export capability would be the next logical step.

The Opportunity for Irish SMEs
Jim Power, Economist

This is an extract from the CPA Ireland Report – Charting a Course for Growth. The report is being serialised exclusively on smallbusinesscan and other articles will be related in the coming weeks.

Jim Power

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Freedom and Passion Beat Nearly Any Job

As an entrepreneur, I am fascinated by people who have a paid job. I went to the dark side and had permanent, pensionable job for four years. Loved it. A regular salary and not having to chase the next contract.  It was comfortable. And then it started to niggle, I wanted to be an example for my kids and I realised that  Hence Bookbuzz and Smallbusinesscan.

Entrepreneurship is the future

freedom and passion beat nearly any job.My standard advice to every employee is to consider entrepreneurship. If you want to be anti-fragile in the labour market of the future, you will have to.

Hacking your work

The next back thing is for you to take some lessons from “Hacking work”, which is about reinventing your work. There are a lot of interesting books about work, the meaning of work, controlling your own destiny and all that. Even the Dalai Lama wrote a book about happiness at work.

Why is that important? There is a strong economic rationale behind being happy at work. Happy workers are 10-25% more effective (from “Emotionomics”).

Being out of control whilst trying to be in control

“Hacking work” is about organisations being out of control whilst trying to be in control. Corporate big brother. The problem is that Big Brother uses outdated systems that are no longer relevant. It does not allow for meaningful dialogue with your staff, let alone with your customers. It does not allow to do great work (as distinct from mediocre work).

“Hacking work” preaches quiet revolution. Personnel taking control back, creating their your own systems and ensuring their personal return on investment as well as the ROI of the business.

As CEO or owner manager you should take note. The power is shifting towards the workers (Marx is back!). If you don’t allow for this revolution in your workplace, your competitor will. With the consequent a negative impact on staff and customer retention.

A few tips for CEOs:

  • Presume all your workers have ADD  (attention deficit disorder). Actually presume your customer you have the same disorder.
  • Give your staff a few hours a week to spend on Facebook, LinkedIn, etc..
  • Embrace a policy of radical transparency
  • Engage in dialogue with you staff (using social media the same way you would use for dialogue with customers).

ROWE

Or consider adapting to a Results Only Work Environment

I bet that a lot of you go to work and give everything you have. And I bet you are treated like children who, if left unattended, will steal candy.

You go to work and watch someone who isn’t very good at their job get promoted because they got in earlier and stayed later than anyone else.

You go to work and sit through overlong, overstaffed meetings to talk about the next overlong, overstaffed meeting. You see talented, competent, productive people get penalised for having kids, for not being good at office politics, for being a little different.

Ditch the mindset

If any of this resonates with you, then you are by definition an employee – and the organisation you work for holds outdated beliefs about work based on assumptions that do not apply in today’s 24/7 economy.

This is the message in “Why Work Sucks – and how to fix it” by Cali Ressler and Jody Thompson, who claim that there has to be a better way. This better way is only possible when we change our focus from hours to outcomes, when we ditch our traditional Monday through Friday, 9-5 mindset. The 40-hour work week, say the authors, is outdated and outmoded.

ROWE

The authors developed a radical workplace experiment known as ROWE – Results-Only Work Environment, where you control when, where, and how long you work. As long as you meet your objectives, the way you spend your time is entirely up to you. Work is no longer a place you go to, it’s a thing you do. ROWE has no mandatory meetings or fixed schedules, you stop doing any activity that wastes time, no one criticizes you for “leaving early” or “coming in late,” and if you do your best work at midnight or on Sundays, that’s fine.

Guerrilla HR bomb throwers

In case you are tempted to regard ROWE as a utopian fantasy, be aware that it is already a reality at the Minneapolis headquarters of consumer electronics chain Best Buy.

According to the authors, ROWE not only makes employees happier, but also delivers better results. Businessweek describes the authors as guerrilla HR bomb throwers. Intuitively, the idea of treating employees like grown-ups sounds great.

After all, entrepreneurs, freelancers and salespeople already use ROWE principles in their work. No one can seriously doubt that an incredible amount of time and energy is wasted at work.

At least consider to be an entrepreneur at work. You will be happier.

Let us know what you think. Tweet @smallBC, use #hackwork

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