The challenges of running an SME: Allan Bird

Have any of you started a SME?

Allan Bird in the middle with traditionally attired dancers 

Do you have any experience or done any studies in this area?

I started a SME with K10,000. It took me 15 years of making many mistakes before I learnt to do business well.

Today I can run any business and do it well. I believe that if you can run a tucker box well, you can run anything. The principle is the same.

When I went into vanilla, I was the first exporter in PNG. I knew more about it than anyone else in PNG. These peculiar things contributed to my success.

During the time I started my business, I never stayed in a hotel unless absolutely necessary and I never spent money on anything but the business.

After my vanilla export license, some 5,000 licences were issued to other operators. 99% of all those new businesses failed.

So I will make a prediction that 90% of all these new SMEs will fail.

They will fail because they are competing in a small space, or they don't understand the business they are in, they don't know where the markets are and finally they will simply not have the discipline to make it work.

When I speak to aspiring business people I always tell them, don't get into business in an area you know nothing about, don't go into a business that you have no passion for, don't go into a business that everyone is doing unless you can do it better and finally, don't go into business if you have no discipline.

Finally, if you're not prepared to work 16 hours a day, 7 days a week. Then keep your day job.

When you start an SME, you are the manager, the driver, the HR officer, the counselor and the accountant. You have to be all these things.

If you don't do these things, you will fail.

The Kina and Toea 45 years on

Forty-five years ago, today, a just-about-to-be-born Papua New Guinea marked its official economic entry into the World when it officially launched its own currency, the Kina and Toea.

Amidst skepticism from Foreigners and Papua New Guineans alike, a young Sir Julius Chan, recently appointed as the Minister for Internal Finance, worked with an expert team to prepare the National Currency Ship for a successful launch, which occurred on schedule on the 19th of April 1975 in Port Moresby.

Sir Julius has always said that the launching of the currency was a team effort, and that he had the best team he could ever hope for.

He established a Currency Committee which included the founding Governor of the Bank of Papua New Guinea, the late Sir Henry ToRobert, as chairman, PNG's first Secretary for Finance Sir Mekere Morauta, Professor Ross Garnaut and other public and private sector officials who worked tirelessly in organizing the currency change-over from the Australian dollar to PNG's very own Kina and Toea.

When the kina was first issued, PNG had not reached full political Independence as yet.  However, the existence of the nation's own money, together with the other measures the self-governing administration took to establish control of the economic life, gave the country-to-be a real measure of practical independence.

Even after Independence, though, many still did not seem to accept the kina as “real money.”  Sir Julius recognized this, and shortly after Independence he took another bold step by raising the value of the kina by five percent against the Australian Dollar.

When people saw that they could buy more goods with the Kina than with the Dollar, all the dollars they had been hoarding came out of hiding and were changed into kina.

The Kina had arrived.

Today, as current Governor of New Ireland and the last Founding Father standing on the floor of Parliament, Sir Julius Chan says, "We have come a long way, we have overcome many challenges.  Never lose hope, Papua New Guinea will make it through whatever challenge is thrown at us.  As, Dr Marian Luther King once said “We shall overcome”.

For Sir Julius the launch of the Kina on 19th April 1975 was linked with a deeply personal moment for him and his family,  as his fourth and youngest child was born that very day.

And Sir Julius, sensing the history of the moment, named his son Toea to bless the occasion.

As we reflect back on the birth of our beloved Kina and Toea, perhaps it is time for the architects of PNG’s financial and other institutions to re-group and work on new strategies to deal with today’s economic problems.

We are facing serious challenges today, but we have met serious challenges before and come up with answers.

We are Papua New Guinea.  No matter what challenges the world throws at us, “We Shall Overcome”.

Press Release from Sir Julius Chan


   

West Sepik community leader wants PNGDF call out to curtail Covid-19 span the hinterland border region

A community leader from Amanab in West Sepik says there is increased number of illegal border crossings and other illegal activities taking place between the Dera Constituency people and their counterparts in Indonesia’s West Papua.

Timothy Vima is the former local level government president for Amanab and is from the Kembratoro Catholic Mission area, west of Amanab government station.

He is speaking out in light of the Corona virus security concern and deployment of security personnel to the border regions.

A total of 68 PNGDF personnel arrived in Vanimo early this week to boost manpower responding to the Corona virus pandemic.

Six medical officers from the 1^st Battalion Royal Pacific Islands Regiment were among 48 others from the 2^nd Battalion Royal Pacific Islands Regiment.

Papua New Guinea Defence Force soldiers meet with Sandaun Provincial Administrator Conrad Tilau

Mr Vima said the State of Emergency and the awareness on Corona virus should be carried out in the hinterland areas of the Vanimo Green River District where there are illegal border crossings frequently happening.

“To be stationed in Wutung, Bewani, and Green River is not enough,” he said.

“Deployment of security personnel must also be to areas where there is more chances of the disease coming from the other side of the border.”

“Dera should have military personnel stationed at Kembratoro Catholic Mission as there is currently frequent movement within the three wards and other villages at Amanab local level government.”

In 1990 Operasi Papua Merdeka (OPM) rebels kidnapped a Papua New Guinean, three Filipinos, an American and New Zealand missionaries and held them captive just past Kembratoro before they were released in December.

Mr Vima said the villagers at his area are crossing the border to access basic needs and services from the nearby Indonesian government stations of  Ubruf, Yuruf, Yabanda and Sengi.

“Dera is remote with no road connections to Vanimo and no form of communication like mobile transmission of HF radio for reporting any suspected cases or illegal migration of people across the border,” Mr Vima outlines their concern.

‘There is also no proper health facility to do checkups if there is any suspected case.”

Mr Vima said Dera Constituency has three wards and 284 citizens have illegally crossed into Indonesia to work in Oil Palm Plantations at Arso and Lere, Jayapura Regency of Papua-Indonesia.

They have warned people not to cross back into PNG and ward members are in fear of the corona virus.

The want the national and provincial governments to assist them as people are returning secretly one at a time.

National Housing Estate company accused of failing to file tax returns for 10 years

The National Housing Corporation and its subsidiary, the National Housing Estate Limited have been criticized by affected tenants who were evicted from their lodgings, for lack of compliance to business practice. 

Some evicted tenants lived at these places for more than a decade.

The allegations come at the back end of the both organizations wielding their authority, with the full backing from Housing and Urbanisation Minister Justin Tkatchenko to “pay up or move out.”

Household stuff for families evicted this week in Port Moresby

Displaced tenants have raised concerns that the National Housing Estate has not been fully operational having effective systems in place and worst as a company, it has not filed annual returns for more than a decade.

A check with the Internal Revenue Commission yesterday, an official confirmed the NHEL incorporated in 2010 has not filed annual corporate tax since then.

The company has not filed salary and wages tax as well.

The acting managing director is Madeline Paulisbo and Internal Revenue Commission records say she is the current contact person.

Their office and their public relations department were contacted but they could not be reached.

The IRC official said the company should file tax returns even if it was not making profits.

Five families around the 5 Mile, Henao Drive area in Port Moresby were this week evicted as a result of defaulting their rentals, one had arrears up to K30,000.

The unit chained and locked

The family of nine, including father and mother, humbly moved out and the mother admitted guilt of failing to pay and in several circumstances paying by cash to company employees who produced stamped receipts a day later.

She now realised the money never went to the company.

Minister Tkatchenko on Tuesday said: “The national executive council (NEC) has changed the ownership and shareholding of NHEL and NHC is now the major share holder and will be working together under one umbrella and not separate anymore.”

“They are now working together to develop and maintain all the properties owned by the two entities as it makes it easier to develop housing in PNG,”

The concern from affected tenants at 5 Mile, Henao Drive was that most have outstanding arrears that could not be settled immediately and the company was not functioning orderly and complying with tax compliances, they could work out something mutual, beneficial and keeping all records clean.

“We have been paying rent, and we have already discussed these issues with NHEL, yet we are continuously bullied and harassed by police and NHEL staff,” said committee leaders.

“Minister for Housing Justin Tkatchenko promised no evictions, yet we have been thrown out of our homes again,” they said.

“NHEL has continued to be in breach of its tenancy agreement as well by failing to maintain these properties. It cannot be always a one sided affair with NHEL, they need to step up and play their role as the landlords and maintain the properties.”

Committee Leaders have called on the Metropolitan Superintendent for Police Perou N'dranou, Member for MoresbyNorth East John Kaupa Minister Housing Justin Tkatchenko, and CEO Madelin Paulisbo to meet with them.

Unitech professor says women enjoy privileges and opportunities as men

  Papua New Guinea University of Papua New Guinea senior lecturer Dr Racheal Orake sys in every society and community around the world, women folk have struggles yet they survived and thrived.

This was her opening remarks during a celebration marking the Women's International Day at the Taraka Campus on Sunday under this year’s theme “Equal For All”.

“Despite every struggle and suppression in the communities and societies, the women folk have survived and we must recognize them the endurance they encountered in their lives because of their gender.”

“Unlike today, most of our women folks were denied, ignored and suppressed due to differences in cultural settings but over time they have overcome these disadvantages,” she said. 

Professor Garry Sali cutting the cake

The Head of Communication and Development Department, Associate Professor Garry Sali said that unlike in the past where women’s rights have been suppressed and ignored, women today enjoy the privileges and opportunities as their male counterparts.

“We must understand that it’s the cultural perception and makeup of each society that has played an important role in the differentiation of social makeup of the societies.”

“The gender differentiation which denied the women folks their rights were the making of the type of culture that they lived in.”

Professor Sali said that this has now changed over the years and now women in PNG are well protected by the law where they are enjoying privileges as the males.

He pointed out that at the back of a successful man, there is a woman and women play an important role just as the man.

“The women must be recognized as equals in our society and also as important players in our nation building.”

“Together with women working with us side by side, we can build this young nation where gender equality and gender balance needs to be balance in all socio-economic and political domain of the country to develop positively,” said Professor Sali.

NBC managing director wants board and management to work within their responsibilties

National Broadcasting Corporation managing director Kora Nou says the organisation and the board were at loggerheads recently, moving in and out of the courts.

This has adversely affected the oldest broadcaster's operations.

Apart from that, the NBC and the whole of the ICT sector in a short space of time when there was a change in government had five ministers.

The recent one being Hon. Timothy Masiu.

Minister Timothy Masiu speaking when the board members took oaths and affirmations of office

“That’s a record of some sort,” he said during the board members took oath and affirmations of office last Friday.

The organisation also did not have a functioning board for a year.

“We had a start stop situation,” Nou said.

In welcoming the board headed by Pius Tikili, he said he was content there was a seamless transition now with the installation of a new board and they would be inducted in due course.

But Nou has stressed what Minister Masiu also emphasised that the board and management should be clear about their roles and responsibilities.

“The demarcation are to be clear,” he said.

“The board provides the strategic directions and the management and staff has to implement.”
“I also pledge loyalty and dedication to the new board,” he said.

He said the staff and management looked forward to “bring it (NBC) back to the glory it used to have.”

Former board chairman Timothy Tala and member Ps Babani Harry has been retained to ensure continuity at the board level guiding the new members on many projects and initiatives the NBC has embarked on.

The other members are deputy chairman Emil Tenoa and only female and lawyer Zinnia Dawidi.