Reinventing SMEs Financing in Emerging Markets
The Proposal discuss innovative ways to entice equity-based financing into SMEs from global capital markets. The author proposes an international SME Model,as well as strategies to certify SMEs Owners and Managers to meet global class. Its aim is to drive the growth of SMEs in emerging markets , as well as to create sustainable job growths.
Sobre Você
Sobre Você
Nome
Raymond Keng Wan
Sobrenome
Ng
Website
Your Organization
Country
Singapura
Sobre Sua Organização
Nome da Organização
Página da organização na internet
Telefone da organização
Endereço da organização
País da organização
Organization Type
Private Institution
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Your solution
Name Your solution
Reinventing SMEs Financing in Emerging Markets
Describe Your Solution
The Proposal discuss innovative ways to entice equity-based financing into SMEs from global capital markets. The author proposes an international SME Model,as well as strategies to certify SMEs Owners and Managers to meet global class. Its aim is to drive the growth of SMEs in emerging markets , as well as to create sustainable job growths.
Country your work focuses on
If multiple countries, please list them here. If your solution targets an entire region, please select it below
North America, Europe, India, China and Australiasia
Region(s) your solution focuses on:
Range of turnover in your target firms, in USD
$1-5 Million.
Average turnover in USD of your target firm
$1000 000
Number of employees in your target firms
5-24.
Average number of employees of your target firm
10
Specify the size, average and range of expected loans or investments in each target firm
The target size of firms ranging from private placement of US$50 000 for knowledge-based start-ups through US$500 000 for scalable global firms - raised by direct stock offerings.
What stage is your solution in?
Fase de concepção
INOVAÇÃO
What makes your innovative solution unique?
At the moment, investors and lenders rarely have a benchmark to gauge owners competence in managing his business. I proposed competency-based assessment/ certification aligning with global best practices. It affirms the owners and managers commitment to the business.
Next, emerging markets are still conservative in their business approach, especially in dealing with world markets. An international SMEs Model will push standards to grow SMEs in emerging markets.
Should one world standard be adopted, a multiplier effect will prevail in SMEs growths followed by job growths - a pressing issue faced governments everyway today.
The implementer/s must have the political will and a love for his people to make it work.
How does your proposed innovation leverage public intervention in catalyzing private SME finance?
Government plays a very important role in my proposed solutions. There is a need for an initiator to "sell" the idea to various foreign government during summits where a multi-lateral agreement to establish and recognise the economic, social and political value of an International SME Structure.Without public intervention,the collective proposals will not likely to work well as planned. In essence, all stakeholders should be involved equitably.
What barriers does your proposed solution address?
Asymmetry of information, Lack of financial capacity, Lack of SME access to skills / knowledge / markets, Unavailability of financial products tailored to SME needs, Lack of institutional capacity of financial intermediaries, High transaction costs for financial intermediaries to serve SMEs, Underdeveloped local capital markets (term local currency funding, exit options for SME equity), General barriers to SME development related to investment climate, Specific barriers to fragile and weak states.
If you checked any of these barriers, describe how your solution addresses them
The solutions proposed aim to develop a equal opportunity platform to tap equity finance from within one's country as well as abroad. Emerging markets presents inefficiences in knowledge, information, obsolete technologies, domesticatedly-minded professionals which pose hindrances to the growths of SMEs. Hence, also hurt its financing opportunities.
The costs of capital in raising equity and debt could also be pricey. The author's approach is contrarian but workable. It will take time to brew the idea but it could be achieve in sequential steps as people-at-large are fear to change.
Changemaker Raymond Ng
Impacto
Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact
The U.S. has some schemes like Regulation D and Regulation S for Small Corporate Offering Registration and selling shares to foreign investors. But the features are not flexible and friendly enough and maintenance costs could still be higher than the model which I am proposing.
The aim is to provide a platform for SMEs to profile his company, risk factors, financial performance by applying international financial standards , growth potential etc for global investors to invest with optimal information ,minimum ease and costs on a medium to long term timeframe.
How many firms do you expect to reach?
At least 1000 in each emerging market for the first 18 months - launching a Pilot Programme to assess its impact.
What is the volume of private SME finance you aim to catalyze?
Based on 1000 per country, the sum per country would addup to aan average of US$50 000 000 at least.
What time frame will be required to reach these targets?
It depends on resource availability and allocation. 18 months should be a good gauge for 1000 companies.
Does your solution seek to have an impact on public policy?
Sim
What would prevent your solution from being a success?
In essence, it should be run as a non-for-profit organization or by an economic development agencies of government. Once, the state start to think of privatisation, it would loss it purpose to exist - as profit figure becomes number one and agency theory sips in.
The next issue is transparency. There should be policies to make information current. Should there be any acts to reduce disclosure standards, the integrity of this mechanism were dwindle.
Temas relacionados à inscrição
Describe the social impact of your innovation. Please include both numbers and stories as evidence of this impact
Socially, it would provide an avenue for more people to engage in entrepreneurship. People will take more responsibility for their financial well-being. ore jobs will be created with a constant availability of equity funds for SMEs.
SUSTENTABILIDADE
List all the funding sources that are required for the sustainability of this solution
public funds
institutional and pension funds
social funds
foreign investors fund
Demonstrate how your proposed solution has the capacity to graduate from dependence on public finance. What is the time frame?
30 months
Demonstrate how your proposed solution will survive a potential loss of its largest private funding source
US$100 per investors and above - depending on risk management
Please tell us what kind of partnerships, if any, could be critical to the greater success and sustainability of your innovation
Approximately 150 words left (1200 characters).
Are there non-financial issues that could threaten the sustainability of your proposed solution?
Custodianship and fiduciary duties.
Please tell us if your proposed solution aims to scale up through a high growth sector, expand immediately to multiple sectors, and/or scale up geographically
The solution should benefit knowledge-based services business model that is scalable into global markets
 | 94 weeks agoRaymond Keng Wan Ng submitted this idea. |