MSMEs urged to tap into unconventional space

MICRO, small to medium enterprises (MSMEs) should learn to work from home instead of renting to grow their business to save themselves from disappointment, an official says.
PNG MSME council president Des Yaninen said they should use social media, especially Facebook, to reach out to their customers.
PricewaterhouseCoopers PNG entrepreneurial and private business director Michael Collins earlier said SMEs by nature, tended to have a high failure rate.
He said issues relating to current and future payments for rent, wages, loan repayments, power, insurance and it was recommended having discussions directly with the landlord, employees, bank or other service providers.
Yaninen said to address rental arrears, retail MSMEs could buy in bulk and resell to pay daily rentals instead of monthly.
Yaninen commented after reports of two SME incubation centres closing in Port Moresby within a month, due to outstanding arrears.
The first closure was the National Development Bank (NDB) incubation centre at Hohola in October and the second one was at the Pacifika Women’s Network centre in Waigani last week.
“Otherwise SMEs should operate from home and use Facebook to reach customers,” he said.
“Post PNG is developing a new locker system to facilitate movement of products between e-commerce buyers and sellers. I look forward for the launching of the programme.
“NDB has earmarked on how the K80 million will be allocated but it will be apportioned between agriculture, women, youth and Bougainville SMEs. If you refer to the full page lift out by Department of Commerce and Industry in The National you will see the breakup of the K80 million.”
Yaninen said the SME funds was a good spread but the funding for next year should also go to the micro banks.