Euroview 
| SME Centre takes off |
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The ECCT SME Centre is a meeting place and provides resources to European SMEs looking to enter the Taiwan market BY NICOLAUS WILK Europeans have long had successful business interests in Taiwan. However, as with any investment destination, differences are always bound to arise, and things might not always go as smoothly as planned. Where, then, can one turn for assistance? The ECCT SME Centre is the place – providing services catering to the needs of small to medium enterprises (SMEs) from Europe looking to explore, establish business, and develop in the Taiwan market, as well as for Taiwanese SMEs looking for partners and business opportunities in the European Union. “At its best, the Taiwan government displays indifference to Europeans opening a small business in Taiwan,” says Enspyre Corporation president and ECCT SME Centre co-chairman Elias Ek. “There is no active support or encouragement from the government that I know of.” Ek points out that one of the positives of starting a business in Taiwan is that it is a very streamlined process – even for foreigners. It is convenient to hire an accountant to register a business, but it is certainly possible to do it by oneself as well. In addition, in just about every government office a prospective entrepreneur visits there will be some nice person who can help foreigners work things out in English – although it may be broken. That means that foreigners who speak no Chinese can get things done, says Ek, although it is much easier if one can speak Chinese.
Yet, still, there times when it can be frustrating for foreigners doing business in Taiwan. Previously, the law stated that foreigners needed a Taiwanese partner to start a business in Taiwan (similar to the current practice in mainland China). However, the rules have changed, yet there has been no active promotion by the government, meaning entrepreneurs will have to be prepared to explain this fact, and may face rejection on several business-related fronts due to a non-existing government regulation. That said, the ECCT SME Centre is working hard in the interest and on behalf of European SMEs. Already in operation for several months, the ECCT SME Centre marked its “official” launch on March 26 of this year. The SME Centre membership offers a number of benefits including the opportunity to attend its many events, such as workshops on topics ranging from tax to HR, seminars and meetings with government and institutions. Currently, the Centre is working on building up contacts with government departments, banks and other companies who provide English language resources and are friendly to foreigner-run businesses. Through its various activities, SME Centre members gain knowledge from qualified professionals and network with fellow SMEs and other stakeholders. The SME Centre has already attracted a number of foreigner-owned SMEs in Taiwan, managers of local branch offices of foreign companies, and owners or managers of companies that have specific services or products catering to SMEs. In addition to offering services and activities for its members, the SME Centre provides a unique platform for SMEs to network and build relationships with the Taiwanese government, Taiwanese business associations and other foreign-owned and managed SMEs. Since October 2007, the SME Centre has arranged a number of events on topics such as Internet marketing, branding, logistical solutions, accounting, HR and ARC-related legal issues. One recent success has been in communication with the Taiwan Small and Medium Enterprise Credit Guarantee Fund, which helps companies without collateral borrow money. The Fund confirmed there was no rule preventing a company founded by a foreigner to seek their help. “This is a big step forward since most banks simply reject any loan inquiry from a company founded by a foreigner without looking over the credit worthiness,” states Ek. The SME Centre’s website offers a wealth of useful information for small and medium business owners doing business in Taiwan on topics such as financial services, taxation, and human resources, and also lists a member company directory. The website further acts as a platform for business opportunities between Taiwanese and European SMEs, with the support of the above-mentioned local business associations. The SME Centre Resource Website can be found at http://sme-centre.ecct.com.tw Interview with SME Centre co-chair and Enspyre Corporation president Elias Ek Q. ECCT: How does your company fit in among Taiwan’s other SMEs, and how are you different than them? A. Enspyre fits in just fine with Taiwan’s SMEs. Ninety percent of my customers are local Taiwanese companies and we work very well together. They need what Enspyre offers and we need them so it’s great symbiosis. However, Taiwanese bosses are not quite as accepting of outsourcing secretarial services as in the West, but the market is growing fast.
A. The best I can say about being a European entrepreneur in Taiwan is that there is an entrepreneurial spirit here that is very motivational. Many Europeans come to Taiwan to study, teach English or for some other type of work and a great many get bitten by the entrepreneurial bug. In Taiwan just about everyone talks about how they want to start a business of some kind, and that is contagious.
A. My own experience with Taiwanese employees is overall very good; I have the privilege to work with great people. But finding them takes hard work. The ECCT SME Centre held a workshop in April where bosses and managers discussed their HR issues. It surfaced that just about everyone had big trouble just getting people to the interview. Something like 70% of the interviews didn’t happen since the person simply did not show up. It’s plenty hard to find the right person when one can’t even get people to show up for interviews. It often seems to me that Taiwanese employees are not taking responsibility for their own lives and careers. One seldom meets a person who loves their job. This means that most people are slugging it out in a job they are not happy with AND often working very long hours. Then they quit for a few months “to rest”. After this they find another job and the cycle starts again. As an employer I would love to find more people who are dedicated to their profession and is coming up with great ideas and suggestions even if this means they are asking for more money and less work hours.
A. Enspyre has two main services. One is to help SMEs with their secretarial and customer services. This means that there are hundreds of companies where if you call them, the person who answers actually works for Enspyre. Our second service is telemarketing; mainly we help companies of all industries find more customers by cold calling other companies. I knew that we had really had an impact on Taiwan when one of my employees answered the phone just to find herself talking to her colleague across the room – calling one customer on behalf of another! The last few years have been quite amazing. As Enspyre has grown I feel how we are becoming a bigger and bigger part of Taiwanese society. I have been interviewed by newspapers and magazines and been invited to TV and radio shows, I have given speeches for associations and companies of all industries. It’s a lot of fun to get into a cab and end up discussing start-up tips with the driver because he has seen me on TV. The telemarketing services are of course usually used to market products or services, but sometimes we also work with local charities. Mark Western is a Canadian who lived in Taiwan for many years and he arranged several successful fundraising projects. Our telemarketing team got involved with calling companies and arranging sponsorships for several million dollars. Selling things for our customers is great, but somehow it was even greater raising money that will help protect Taiwan’s marine ecology. A proud task for all of us. Interview with SME Centre co-chair and Songfuli Co. Ltd. president Thomas Siegers Q. ECCT: How does your company fit in among Taiwan’s other SMEs, and how are you different than them? A. I think the biggest difference is our makeup and culture. We are competing with “normal companies” – i.e. companies owned and managed by Taiwanese – yet Songfuli is a bit different. As such, we try to turn that difference into an advantage by merging Western and Asian strengths, and I believe it works for us. It seems in terms of creativity and organizational efficiency we have an advantage.
A. Definitely it is much easier to start a company here than in Europe, which makes Taiwan an attractive destination for many innovative entrepreneurs. As with anywhere, there are always opportunities to find support from the local government, but one has to put in the work to reap the rewards. There were and still remain many programs to help start-ups, but they change over time. And, as anyone who has lived in Taiwan for a period of time can tell you, they also depend on government plans and budgets. Taiwan’s economy is still very product-oriented. The values of creativity, service, organized workflows, and legal frameworks are not well understood, and there is often a desire to improve things, but a corresponding lack of know-how. Here is a chance for Western entrepreneurs to make their mark.
A. Taiwan is an economy of micro to medium companies. It’s uncomplicated to work here, and cooperation between companies works very efficiently. Moreover, the infrastructure is excellent, one less thing for start-ups burdened by small budgets and low revenues to worry about. Above all, Taiwan is very compact, with a small area yet a substantial population, making not only consumers, but also business partners very easy to reach. Many tasks can be accomplished within the vicinity.
A. One of the big differences is in the different demographics. Middle-aged and elderly people still know how to work hard – quite different from some of the burnout we see in the West. However, young people are often looking for fun and do not depend on their jobs or offer as much stability as in the West. That makes it hard to find motivated and reliable people – but once you do, they can be very dedicated. Many here are already happy, if you let them work freely. They can be very modest, yet be responsible and ambitious. There are some for whom money is not the most important aspect of the job. Some do an amazing job for little benefits. It seems some just want to escape from their regular environment. If they can work freely, know how to do the job, and receive respect, they are happy. They are uncomplicated and don’t argue a lot. Either they are happy or not. If they are happy, they work; if not, they go.
A. Taiwan’s laws and regulations could be better – more consistent, coherent, and thought through. The existing framework bears risks and dangers, which can be passed on to business people and can drive away investment. Often it’s difficult – even nearly impossible, to comply with regulations. The protection for small businesses is poor. Competitors can report you anonymously. We need better laws and a better execution of the laws.
A. Songfuli helps market Vitafresh vitamin tablets in Taiwan. Our products have been listed in Cosmed, the second biggest drugstore chain in Taiwan. This is quite an accomplishment for an SME, as in our segment we are competing with the big, multi-national pharmaceutical companies. To draw attention to ourselves, we use that mixture of Western and Asian strengths and our creativity to generate crowd-drawing promotions. For example, we did on-stage shows during exhibitions, where our logo came to life as a dancing girl, helping to position Songfuli and also attract customers to our booth. Furthermore, we have even performed as an “incarnation” of our tubes, when we created a giant walking tube to hit the streets and hand out flyers on our product. The reaction was great, with many pedestrians stopping to take photos with us and learning more about our products in the process. |