Looking back and going forward – Vanuatu’s BLP Business Advisory Service Network
As the end of year edges closer, Business Link Pacific is taking the time to reflect on our endeavours in 2018 as we set priorities for 2019. Last week we were busy in Vanuatu catching up with the local advisory panel, partners and Vanuatu’s media.
On Tuesday 20 November, Vanuatu’s Business Link Pacific (BLP) professional network of business service providers, participating small businesses and program partners – including representatives from the Vanuatu Chamber of Commerce and Industry (VCCI) and New Zealand and Vanuatu governments – met to review BLP’s first year of operations in Vanuatu, set directions and map out actions for 2019.
BLP is “striving for success, and continuous improvement” by ensuring partners are actively involved in evaluating progress and contributing to strategy and direction setting. Inclusion ensures that BLP’s activities meet small and medium enterprises (SME’s) needs through local expertise.
Paul Wendland, BLP’s Deputy Director, explains: “We want to ensure efficiency and economic impact here in Vanuatu. BLP is serious about ensuring our local stakeholders are fully engaged in how we are tracking and telling us their thoughts about how we can improve our service delivery.”
“We got together this week – as we do it every six months- to hear first-hand about what is successful. We want to know what is working, and what do we need to do to improve. Are we orientating to small businesses in a constructive way?”
Vanuatu’s top 5 business service requirements
Kesha Licht is BLP’s Business Services Support Specialist is based at the VCCI, where she has personally interviewed 56 Vanuatu SMEs in 2018 using the BLP’s Business Diagnostic and Referral tool to determine what professional services they need.
“The BLP Business Diagnostic and Referral service is like a Dr’s check-up for business,” said Kesha. “This year we have worked hard to improve the interview format to localise it, and simplify it to make it more understandable for the SMEs, and less like a bank interview.”
“Currently it’s a face-to-face interview conducted via the VCCI that identifies the SMEs strengths and weaknesses and produces a useful report for the SME. It identifies what professional services the SME will benefit from. Then we refer them to professional business support from our local network and help by subsidising these services.”
In 2019, BLP will roll out the Business Diagnostic service as a digital Android tool with strong reporting functions that can guide and support SME growth and development, as well as be a useful tool for banks and the finance sector.
“Interestingly, the top five services we have identified as most needed by Vanuatu SMEs are: website development and e-commerce; social media campaigns and digital marketing services; financial services, accounting software (Xero), VAT compliance, investment and capital facilitation; business branding; and professional and organisational development mentoring,” said Kesha.
Fine-tuning the Business Diagnostic and Referral service
Vanuatu’s business network had a robust discussion about improving the BLP Diagnostic and Referral system for both BASPs and SMEs. To date, 12 small businesses have been referred to business advisors via the BLP referral process.
“We recognise that SMEs are already very busy. They often don’t have time to engage in the BLP process or with business advisors, even though they need professional services and benefit from subsidies. Our BLP business service providers are equally busy. We learnt they want to be more efficient with their pitching and want the BLP Referral process to be more seamless and efficient to secure clients and subsidies,” said Paul.
“We need to fast-track referrals. A simple solution that the Vanuatu network identified they would benefit from is receiving a brief referral report outlining the SME’s key information and challenges faced. This would help to fast-track the referrals and improve conversions because it already would capture key information,” said Paul.
Xero subsidy and payroll plug-ins
The Xero subsidy has been very welcomed by Vanuatu’s finance community and SMEs. In Vanuatu, 100 SMEs have benefited from BLP’s partnership with Xero.
“As a small business, Savvy Vanuatu is very grateful for the Xero sponsorship and one-on-one training to improve our business growth. Now we would like to skill up our staff through an affordable group training experience in basic Xero use. This would improve their capacity as well as build a local professional cluster of Xero users. We could then direct our energies and budget to troubleshoot specific issues with our finance professionals,” said Savvy Vanuatu’s Lisa Macalister.
Martin Saint Hilaire spoke for the Vanuatu Financial Centre Association: “We have promoted the subsidised use of Xero with support via BLP across Vanuatu’s finance sector to help Vanuatu’s economic development and to provide a level playing field for everyone.”
“I am now recommending a payroll plug-in for Xero needs to be developed specifically for the Vanuatu context. This is a weakness Vanuatu has. If this were developed with support from BLP it would be an enhancement for everyone in business in Vanuatu,” said Martin.
Enabling e-commerce
Another critical digital area that has been identified as needing a tailored solution for the Vanuatu context is e-commerce.
Currently, there is only one local online payment gateway system established, but ideally, this should be integrated across all financial institutes and work with Vanuatu Post. Solving this issue would be catalytic for many industries, but especially Vanuatu’s tourism and manufacturing sectors.
“Enabling electronic payments is a key point. It is mandatory for the digital transformation of all sectors in Vanuatu. It is a common problem across the Pacific, but the solution must be specific for each country. In Vanuatu, we must sit with the banking institutions to solve this technical issue,” said Marc Gérard from Pacific Digital Transformation.
Showcasing the BLP network
BLP understands that continuing to support communication and promotion of Vanuatu’s professional network of business advisors remains very important for 2019.
“We are currently developing a Pacific service provider website which we will roll out in early 2019. It’s kind of a LinkedIn that is just for the Pacific, where professionals can market themselves to SMEs,” said Paul.
Other ideas from the Vanuatu network included considering opportunities for group media buying, SMEs and BASPs matchmaking and networking events, and considering how to make local professionals more competitive against external visiting companies and consultants who do not have the same overheads as local providers.
Professional capacity building
BLP has actively supported Vanuatu Chartered Public Accounting staff development in 2018, and ongoing professional capacity building within the Vanuatu professional network remains a high priority for 2019.
“BLP’s competency assessment program currently analyses behavioural and professional competencies for each network provider. BLP could take this further by developing a package of support for each firm that looks at what skills to develop for each professional staff member,” said Paul.
Business Link Pacific (BLP) is a New Zealand government funded program, that is working in partnership with the Vanuatu Chamber of Commerce and Industry (VCCI), to provide quality, affordable professional services for Vanuatu’s small and medium enterprises (SMEs) by linking them to a local network of professional business service providers.
The New Zealand and Vanuatu governments recognise how important SMEs are to Vanuatu as drivers of the economy. They generate employment and economic turnover and contribute to the gross economy of the country.
In Vanuatu, BLP’s facilitate growth and economic development particularly in Vanuatu’s key economic sectors of agriculture, fisheries, tourism, construction and manufacturing.
The BLP program currently operates in four Pacific countries (Vanuatu, Papua New Guinea, Fiji and Samoa) with the goal of strengthening local economies by supporting SME’s with quality business advisory services.