Provincial Private Sector Forums On

“The preparation of AEC Integration – Opportunities and Challenges for Businesses”

“Competitiveness” – How to be competitive in the new challenges: Value chain, Productivity, quality, costs.

February 23-24, 2015

Pech Bolene, Vice President of YEAC

Co-founder, Chairman & CEO of Westline Education Group Co., Ltd

Brief Background • Co-Founder, Chairman and CEO of the Westline Education

Group. The businesses include: • The Westline School (English Program & K-12 Education) • The Northline School (English Program & K-12 Education) • Educational Development Institute (Training, Consulting

and Research) • Cowboy’s Snack (Fast Food & Coffee Outlets) • Other Investment: Trading, Agriculture, Tourism, House

Aide Services

2

1. Vice President of Young Entrepreneurs Association of Cambodia

2. 2015 Executive Vice President of Junior Chamber International, Cambodia

3. BNI Member, Network Education Coordinator, CEO Chapter

4. Vice President of Cambodian Higher Education Association, in charge of General & Informal Education

5. Board Member of Cambodia Investors’ Club (Investment Committee)

Winning ASEAN-CHINA Young Entrepreneurs Award 2011,

Vietnam Winning Overseas SME One Asia Award 2012, Singapore

Education: Bachelor of Education and Journalism, MBA in HR 3

• Human Capital Development • Leadership & Organizational Change

Management • Human Resource Management; • Business Management and Development; • Educational Management and

Development;

MAJOR QUALIFICATIONS

• 900 Staff & Teachers • 8500+ Students

About YEAC

About YEAC

About YEAC

• Launched in September 2009 by a team of passionate

Cambodian young entrepreneurs from various sectors of

businesses in Cambodia

• Volunteer-driven non-profit organization to empower young

entrepreneurs of Cambodia, to enhance youth

entrepreneurship and success of youth-owned businesses by

creating a platform for networking, sharing, learning, and

synergizing business opportunities, thereby contributing to

productive employments and economic development that

build the next generation economy for Cambodia.

Our Vision

To support the development and strengthening of Cambodia’s young

entrepreneurs to sustain and grow their businesses.

Our Mission

- To act as catalyst in connecting young entrepreneurs in order to build

synergy, to transfer knowledge and know-how and to enable access to

business opportunities within Cambodia, ASEAN and worldwide.

- To act as policy advocate to advance the interest of young

entrepreneurs with the government, development partners and regional

bodies.

Current Board of Directors

President, CEO of GGear

Vice President, CEO of Westline Education Group

Vice President, CEO of Vtrust Group

Secretary General, CEO of Sabay Corp.

Board Member, Chief Int’l Relat. President of AGL

Treasurer, CEO of APV

Board Member, President of Green Palace Hotel

Board Member, President of Bio-Essence Cambodia

Board Member, MD of Active Event Management

Board Member, President of Sophiya Corp.

Board Member, Partner of PCG Acc.&Fin. Consulting

BOD & SR Chapter President, Director of SR PUC

“Competitiveness” – How to be competitive in the new challenges: Value chain, Productivity, quality, costs.

Everything must begin from real entrepreneurship passion…

Are you a real entrepreneur or just a simple business man? • Modern Definition – one who

creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

Who is the entrepreneur?

• Research indicates that most successful entrepreneurs share certain personal attributes, including: creativity, dedication, determination, flexibility, leadership, passion, self-confidence, and “smarts.”

How We Develop Our Business?

Micro business

Small business

Medium business

Medium Business

Large Business Regional

Informal Formal Sustainable

Challenges and Opportunities for Local Entrepreneurs

• Opportunities 1. Entry to the market of 600 million people 2. Free flow of knowledge, skills, technology, capital, investment… 3. Government’s support 4. Better natural resources than other countries in the region 5. More active labor force 6. Better business and investment infrastructure support than some emerging

markets in the region 7. Flow of foreign investments – recently Japan 8. More financial institutions – banks, MFIs, Private Equity Funds… 9. Growth of local entrepreneurship – Cambodian Investors Club… 10. Better human resource quality

Challenges and Opportunities of Local Entrepreneurs • Challenges

1. Some are not registered so they may not be able to have enough access to formal support from relevant ministries or development agencies.

2. Do not have proper financial reports, business plan, clear management structure which are the main constraints for them to get loan from financial institutions or other forms of investment (M&A, Joint-Venture…)

3. Most are just business people, not entrepreneurs; they lack innovation, creativity, passion, persistence, willing to leave legacy of the business.

4. Many still do not understand and value business knowledge. 5. Quality of goods and services is still limited and inconsistent. 6. Quantity of goods is still unstable. 7. Still operate independently, not properly clustered for common benefits. 8. Lack proper business and entrepreneurship knowledge and skills.

How Can We Help Local Entrepreneurs to Compete Well?

1. Continue to promote legal practice & supporting environment for local entrepreneurs.

How Can We Help Local Entrepreneurs to Compete Well?

2. Build more and better human capital

• Support the operations and investment of TVET institutes

• Strengthen higher education quality

• Establish Education-Enterprise Collaboration Mechanism – research and technology development

What We Need for the Industry

3. Promote creative young entrepreneurs and outstanding businesses.

What We Need for the Industry

4. Create and operate proper business clusters, clubs, associations for common benefits

• Proper board of governance and financial transparency • Represent members and work for the benefits of all members • Capacity building & knowledge sharing • Oversea visits, shared entrepreneurship mentoring programs • SME help desk

What We Need for the Industry

5. Promote SMEs, locally or internationally, with clearer market orientation & focus

• Which industry should our local entrepreneurs focus on? Agriculture, agro-processing, tourism…?

• Which country should we aim to sell to?

6. Establish SMEs bank or fund to provide start-up or development loan • Seed capital, growth capital… • Business Risk Insurance

7. Establish Provincial SMEs/Entrepreneurship Development Centers • Business training and consulting • Sharing office in provincial department of industry and handicraft, provincial

department of commerce or provincial chamber of commerce

What Local Entrepreneurs Should Do

1. Consider Mergers and Acquisitions, Franchising, Joint-Venture, to be a stronger local market player • Share resources, knowledge and skills • Reduce risks • Better branding • Have stronger and better competitive advantages over foreign enterprises • Easy to attract more foreign investment • Can build higher business entry barrier in their market

What Local Entrepreneurs Should Do

2. Prepare proper financial reports, corporate governance, business plan

What Local Entrepreneurs Should Do

3. Join business seminar, training and capacity building

• Finance & business planning • Investment analysis • Sales and marketing • Technology & innovation • Communication skills • English & Chinese or neighbor

languages • International trade, cross-cultural

management

What Local Entrepreneurs Should Do 4. Have a business coach or mentor

What Local Entrepreneurs Should Do

5. Network in the right, supportive business associations. • Young Entrepreneurs Association of Cambodia (YEAC) • Junior Chamber International, Cambodia (JCI) • Business Network International (BNI) • Cambodian Women Entrepreneur Association (CWEA) • Cambodian Investors’ Club (CIC) • CEO Asia Master Club • CAMFEBA • Other local/International/Regional Business Associations

What Local Entrepreneurs Should Do

6. Make friends with regulators, authors, experts and other people who can give you advice and useful information.

How to become a successful entrepreneur? 1. Be a good employee with great achievement and good relationship and

leadership with people around you. 2. Learn from all environment around you, in and outside classrooms – book-

smart and street-smart. 3. Have ambition, but not greed. 4. Do not just hope and wish, but live up your dream and make it into a clear goal. 5. Do what you love and love what you do. 6. Find the right partners. (Strategist, Specialist, Generalist) 7. Arrange overseas business trip and visit 8. Start small, aim high, and plan big. 9. You start a business because you want to bring an innovative, creative and

positive change to the world, not just because you want money! 10. Leave legacy of your business for many next generations to come…

Last Recommendations:

• If do not have any competitive advantages, do not compete. Be a complementing or substitute services or products Collaborate in the supply chain Join with a stronger player

• And once you have decided to compete, you must have confidence

that you can compete well. Study your strengths and weaknesses well Have a clear business and financial plan Improve your sales and marketing strategies and tactics Always be creative, innovation, and proactive to create better and more

value-added services over competitors.

Thank You.

Pech Bolene, Vice President of YEAC Co-founder, Chairman & CEO of Westline Education Group Co., Ltd

Tel: +855-12 523865 Email: ceo@wegcambodia.com