HOCHIMINH CITY UNIVERSITÐ LIBRE DE BRUXELLES OPEN UNIVERSITY SOLVAY BUSINESS SCHOOL MMVCFB 6 MASTER IN MANAGEMENT PROGRAM NGUYEN DUC BINH SMALL AND MEDIUM SIZED PROMOTION CENTER HOCHIMINH CITY BRANCH OF VIETNAM CHAMBER OF COMMERCE AND INDUSTRY TRAINING MODEL FOR OWNERS OF SMALL AND MEDIUM SIZED ENTERPRISES ON THE AIR MASTER IN MANAGEMENT THESIS ADVISOR: DR. TRAN DU LICH HOCHIMINH CITY, 2007 Training Model for SMEs’ Owners on the Air ii COMMITMENT “I commit that this is my own research. All figures and results stated in this thesis are true”. Nguyen Duc Binh Training Model for SMEs’ Owners on the Air iii ACKNOWLEDGMENTS This is a rare opportunity for me to express my profound gratitude to the co-directors program, Prof. Michel Allé and Prof. Tran Anh Tuan and all professors and coordinators of the Viet Nam - Belgium Master in Management Program, who give me a good opportunity to study this useful program. I would like to express my sincerely thanks to Dr. Tran Du Lich for his invaluable guidance, constructive comments, explicit direction and encouragement throughout the study period. My thanks are also extended to Mr. Le Binh Hung, Deputy Director of Hochiminh City Branch of Vietnam Chamber of Commerce and Indutry; Mr. Pham Hoang Tien, Deputy Director of Small and Medium Sized Enterprises Promotion Center; Ms. Tran Mai Trinh, Director of Information Department of Hochiminh City Institute for Economic Research and all of my colleagues for their valuable advices and warm supports for my study. Thank all MMVCFB6 members and the Faculty of the Hochiminh City Open University for their help and boundless inspiration. Last, but no least, grateful thanks are conveyed to my family for their support and great inspiration which encouraged me to pursue this study successfully. Training Model for SMEs’ Owners on the Air iv ABSTRACT The fast globalization and integration process nowadays brings a lot of opportunities but also many threats. Facing with many difficulties, SMEs have to manage themselves to sustain and develop by strengthen their competitiveness via business training. On the other hand, realising SMEs’ current situation, the government issued several support policy and training programs for SMEs, but due to many reasons, there is still a big gap between the SMEs training demand and supply, especially on how to start up and improve a sustainable business. How to fill the gap with current spare and limited result training programs? In other words, how to fill the gap by creating an opportunity for more SMEs to approach a relevant training program? A new model for business training with appropriate content and popular training method will be the answer to those questions. By analysing SMEs’ training needs and current situation, the Training model for owners of SMEs on the Air is designed with systematic training topics on how to start and improve a business using wider approach to target beneficiary via practical application of advanced technology on mass media. On the other hand, the Training Model can mobilize many valuable resources from the government support, donors’ sponsor and SMEs contribution to overcome SMEs difficulties. The Training Model with its practical content will not only assist SMEs’ owners to improve their businesses but also enable potential businessmen to start up new businesses. At the same time, it will contribute important part in achieving the government strategy on accelerating new business establishment as core base of economic development. Finally, as result of new SMEs start-up, the Training Model will help create more qualified jobs, reduce poverty, balance local economic structure and therefore ensure a stable social economic development. Training Model for SMEs’ Owners on the Air v TABLE OF CONTENT ACKNOWLEDGMENTS III ABSTRACT IV TABLE OF CONTENT V ABBREVIATION XI LIST OF TABLES AND FIGURES XII CHAPTER I 1 INTRODUCTION 1 1.1 BACKGROUND 1 1.2 OBJECTIVES OF THE STUDY 2 1.3 SCOPE OF THE STUDY 3 1.4 STUDY METHODOLOGY 3 1.5 LITERATURE REVIEW AND APPLICATION: 4 1.6 RESEARCH FRAMEWORK 5 1.7 THESIS STRUCTURE 5 CHAPTER II 6 RATIONALE OF TRAINING MODEL FOR SMES’ OWNERS ON THE AIR 6 2.1 OVERVIEW ON SMES IN VIETNAM 6 2.1.1 SMEs Definition 6 2.1.2 SMEs’ important roles in the economy 9 ♣ Create more new jobs. 9 ♣ Contribution to GDP 9 ♣ Enable free competition 9 ♣ Attracting domestic investment and exploiting local resources. 9 2.1.3 SMEs’ advantages and disadvantages 10 2.1.3.1 Advantages 10 Dynamic, flexible and accommodate themselves to market diversity. 10 Easy start up with small capital. 10 2.1.3.2 Disadvantages 11 Limit in financial capability. 11 Disadvantages in buying input material, equipment and selling products. 11 Lacking of information and management skills. 11 Difficult to attract qualified managers and skilful employees. 11 Unstable business operating 11 2.2 THE ANALYSIS OF SMES’ TRAINING NEED 12 2.2.1 The importance of training needs assessment 12 2.2.2 Methodology of survey 13 2.2.3 Some key results of SMEs training need surveys 14 Year of business establishment 14 Subjects of training courses 15 Training mode 16 Training time 18 Training duration 19 Motives for taking part in management training courses 19 Reason for not participated 21 Training and difficulties/ problems solving 21 Training service providers 24 Training fee 26 2.3 GOVERNMENT SUPPORT ON SMES DEVELOPMENT 27 2.3.1 Degree Number 90/2001/ND-CP: 27 2.3.2 Program No. 143: 27 2.3.3 Instruction No. 40: 28 Training Model for SMEs’ Owners on the Air vi 2.3.4 Decision No. 236: 28 2.4 TRAINING PROGRAM FOR SMES ON BUSINESS START-UP. 29 2.4.1 Government support training programs on start-up. 29 2.4.2 Other SMEs training programs on business start-up. 30 2.4.2.1 Business Edge 30 2.4.2.2 Start and Improve Your Business Training Program (SIYB): 30 Some remarks on ouputs of business start-up training programs 31 On demand side 33 On supply side 34 CHAPTER III 35 IDENTIFYING TRAINING MODEL FOR SMES’ OWNERS ON THE AIR 35 3.1 OVERALL INTRODUCTION OF THE TRAINING MODEL 35 TARGET GROUPS OF TRAINING MODEL FOR SMES' OWNERS ON THE AIR: 35 3.1.1 Main Components Of Training Model For SMEs' Owners On The Air 36 3.1.1.1 First Component - A Radio Show Broadcasted Live: 36 3.1.1.2 Second Component – Study Groups: 37 3.1.1.3 Third Component - Training Material: 37 3.1.2 Main Activities and Time Frame 38 3.2 TRAINING CONTENT 39 3.2.1 Business Awareness: 40 3.2.2 Business Planning: 40 3.3 ORGANIZATION 41 3.3.1 Preparation: 41 3.3.1.1 Selection Of Leading Organization 42 3.3.1.2 Selection Of Local Focal Points 43 3.3.1.2.1 Organizing Focal Point 43 3.3.1.2.2 Technical Focal Point 43 3.3.1.3 Selection Of Trainers 45 3.3.1.3.1 Selection Of Leading Trainers 45 3.3.1.3.2 Selection Of Local Guest Speakers 45 3.3.2 Implementation Process 46 3.3.2.1 Key Partners Meeting For Preparation And Coordination: 46 3.3.2.2 Radio Show Production 47 3.3.2.2.1 Pre-Tape Recording the First Session: 47 3.3.2.2.2 Making Interviews and Presentations: 47 3.3.2.3 Introduction Campaign: 48 3.3.2.3.1 Brief Introduction Meetings In The Province And Districts. 48 3.3.2.3.2 Propagandizing By Leaflets And Posters: 48 3.3.2.3.3 Advertising On TV And Radio: 49 3.3.2.4 Participant Recruitment 49 3.3.2.5 Selection of Study Group Leaders. 50 3.3.2.6 Training for Study Group Leaders 50 3.3.2.7 Training For Local Radio Station’s Commentators And Technicians: 51 3.3.3 Trainers’ Tape Recording: 52 3.3.4 Live Radio Show Broadcast: 52 3.3.5 Monitoring And Study Group Visits. 54 3.3.6 First Survey: 54 3.3.7 Business Plan Collection And Grading. 55 3.3.8 First Assessment Meeting And Closing Ceremony 55 3.3.9 Second Survey - Impact Assessment : 55 3.3.10 Impact Assessment And Review Meeting. 56 3.4 BUDGET ESTIMATION 56 3.4.1 Budget Estimation by Implementation Process of Activites: 56 3.4.2 Sources Of Budget 57 3.4.2.1 First Source – SMEs’ Contribution: 57 3.4.2.2 Second Source - Supporting Budget: 58 SUMMARY OF CHAPTER III 59 Training Model for SMEs’ Owners on the Air vii CHAPTER IV 60 FEASIBILITY STUDY OF THE TRAINING MODEL 60 4.1 SWOT ANALYSIS 60 4.1.1 Strengths: 60 4.1.2 Weaknesses: 60 4.1.3 Opportunities: 61 4.1.4 Threats: 62 4.2 DIAGNOSIS OF RISK AND DIFFICULTY 62 4.2.1 Diagnosis Background: 62 4.2.2 Details Of Diagnosis: 63 4.2.2.1 Training Contents: 63 4.2.2.2 Organizing System: 63 4.2.2.3 Technical Aspect: 64 4.2.2.4 Costs: 64 4.2.3 Solutions To Manage 64 4.2.3.1 Training Contents: 64 4.2.3.2 Organizing System: 65 4.2.3.3 Technical Aspect: 67 4.2.3.4 Costs to deploy the program 68 4.2.3.5 Program Output Criteria 69 Criteria for number of learners 69 Percentage of businessmen learners 69 Number of learners completing their own business plans 70 Number of learner establish a new businesses 70 CONCLUSION 71 SMES’ OWNERS AS DIRECT BENEFICIARY 71 GOVERNMENT AND LOCAL AUTHORITIES AS THE INDIRECT BENEFICIARY 72 ANNEX 2.1-DECREE NO. 90 I ANNEX 2.2- DECISION 143 IX ANNEX 2.3- DECREE NO. 236 XIV ANNEX 3.1 – TRAINING CONTENT XVII ANNEX 3.2 - BUSINESS PLAN FORMAT……………………………………… ……………… …XXV ANNEX 3.3 - DETAIL BUDGET ESTIMATION ………………………………….……………… XXIV ANNEX 3. 4 - QUESTIONNAIRE FOR IMPACT ASSESSMENT XXXIV ANNEX 4.1 -PRICE LIST FOR ADVERTISING XXXIX REFERENCES XL Training Model for SMEs’ Owners on the Air viii COMMENTS OF ADVISOR To whom it may concern: “I, the advisor of Nguyen Duc Binh, the author of the Thesis on Training Model for SMEs' Owners on the Air confirm that the Thesis reaches the requirements of the training program and is allowed to defend in front of the Committee to get MBA degree”. Hochiminh City, 1 st March 2007 DR. TRAN DU LICH Training Model for SMEs’ Owners on the Air ix COMMENTS OF CRITICAL PROFESSOR 1 Training Model for SMEs’ Owners on the Air x COMMENTS OF CRITICAL PROFESSOR 2 [...]... Model for SMEs’ Owners on the Air Chapter III: Identifying Training Model for SMEs' Owners on the Air Chapter IV: Feasibility study of Training Model for Owners of SMEs on the Air Conclusion Training Model for SMEs’ Owners on the Air 6 CHAPTER II RATIONALE OF TRAINING MODEL FOR SMEs’ OWNERS ON THE AIR 2.1 OVERVIEW ON SMEs IN VIETNAM 2.1.1 SMEs Definition In the world, depends on type of businesses, there... 2 The design of Training Model for SMEs’ Owners on the Air based on selection and complement from training content of Start and Improve Your Business (SIYB) and remote business training programs on TV and Radio in some provinces such as HCMC, Binh Duong, Dong Nai and Can Tho 3 The analysis on the Training Model for SMEs’ owners on the Air bases on the concept of mobilizing multiparty cooperation and. .. increases not only because of the appearance of more and more new enterprises but also because of the awareness of the enterprises in the trend of integration On one hand, newly emerged enterprises with young businessmen are aware of opportunities and are always ready to improve their knowledge to expand to the widely opened world market On the other hand, the challenges of globalization require enterprises. . .Training Model for SMEs’ Owners on the Air xi ABBREVIATION SMEs : Small and Medium Sized Enterprises MSEs : Micro Small Enterprises LEs : Large scaled Enterprises VCCI : Vietnam Chamber of Commerce and Industry SMEPC : Small and Medium Sized Enterprises Promotion Center ILO : International Labour Organization SIDA : Swedish International Development Cooperation DANIDA : Danish International Development... is the desire to improve their management ability and the ability of managers in their enterprises (51.6%) The growth and operation expansion make enterprise owners realise the necessity of enhancing their management ability in order to control more sophisticated matters related to their enterprises, especially in enterprises where 20 Training Model for SMEs’ Owners on the Air competition makes them... SMEs training workshops and seminars Experience sharing with GTZ, ILO, Inwent, JICA, JETRO international experts on SMEs development, representatives of local government authorities related to SMEs, radio and TV station and VCCIHCM colleagues Training Model for SMEs’ Owners on the Air 4 1.5 LITERATURE REVIEW AND APPLICATION: The study on Training Model for SMEs’ Owners on the Air is designed in conjunction... DANIDA, and Inwent The surveys are conducted by direct interview, sending questionnaires via mail, fax and email to SMEs’ owners and participants of VCCI workshops and local partner organizations Impact assessment: Sum up collected information and data to have statistics and figures to illustrate for the study Direct contact: information exchange and discussion with SMEs owners and person in charge of training, ... also contribute in some other aspects such as: Training Model for SMEs’ Owners on the Air 10 Establishment of balanced economic development and transfer of regional economic structure, to accelerate local potentials in rural and far remote areas to promote local production and services, contribute to the transfer of regional economic structure That also contributes significantly to industrialization and. .. based mostly on their owners equity, low access capability to loans due to small scale of production, small amount of loan, therefore their loans always are low in priority consideration of credit institution On the other hand, SMEs cannot persuade banks because lacking of collateral and a feasibility business plan for their loans The same thing happens in other countries, including America and Japan,... Rationale of Training Model Government Objectives in SME development Limit of current government support and training program for SMEs Identifying Training Model Training Content Implementation Process Budget Impact Assessment Feasibility Study of the Model SWOT analysis Risk Diagnosis Solutions & Recommendation Conclusion 1.7 THESIS STRUCTURE Chapter I: Introduction Chapter II: Rationale of Training Model . author of the Thesis on Training Model for SMEs' Owners on the Air confirm that the Thesis reaches the requirements of the training program and is allowed to defend in front of the Committee. LICH Training Model for SMEs’ Owners on the Air ix COMMENTS OF CRITICAL PROFESSOR 1 Training Model for SMEs’ Owners on the Air x COMMENTS OF CRITICAL PROFESSOR 2 Training Model for SMEs’ Owners. SMALL AND MEDIUM SIZED PROMOTION CENTER HOCHIMINH CITY BRANCH OF VIETNAM CHAMBER OF COMMERCE AND INDUSTRY TRAINING MODEL FOR OWNERS OF SMALL AND MEDIUM SIZED ENTERPRISES ON THE AIR