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Forthcoming business events

Outsourcing

Opportunities for Maltese and EU Companies in Japan & Korea 07 Cooperation Opportunities 08

The European exchange programme for entrepreneurs

Enterprisewww.enterprise-europemalta.com

Issue 48 - November/December 2013

Malta EnterpriseGwardamangia Hill, Pietà MEC 0001- MaltaTel: +356 2542 0000, Email: info@enterprise-europemalta.com

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Expanding business activities beyond your own country’s borders can be a daunting step! But it is also a move which could create major growth in a business, not to mention new clients, an increased range of products and/or services and a wider company profile. In fact one of the EU’s most concrete economic achievements is the creation of the European Single Market – a market with around 500 million consumers – and SMEs can benefit greatly from this. And to help companies maximise their access to these 500 million clients, the Enterprise Europe Network created the largest cooperation database within the European Union.

As a Maltese entrepreneur, you can easily browse and search through these profiles using keywords; or else you can register [free of charge] and benefit from the following:• Identify a potential partner and click

on “request more information” for an immediate online query;

BusINEss ToDay Is, MorE THaN EvEr,

a question of cooperation!

Looking for innovative technologies, new clients or cooperation partners throughout Europe? The European ‘Partnership Opportunities Database’ (POD) gives you free access to more than 17,000 business offers and requests from over 50 countries.

• Receive an electronic alert every time a profile matching your keywords is posted on the database;

• Be on our email mailing list and keep informed about our workshops, seminars and business missions.

Readers are warmly invited to attend an evening networking event where the Partnership Opportunities Database will be officially launched. Attendees will be also able to carry out their individual searches with the assistance of the Enterprise Europe Network team.

This Networking Event will take place on 5th December 2013, so please pencil in this date in your diary and register your participation as places are quite limited!! We look forward to sharing this experience with you.

Click on www.enterprise-europemalta.com

and unlock the potential!!

Readers are warmly invited to attend an evening

networking event where the Partnership Opportunities Database

will be officially launched on 5th December 2013

21 November Participating in International Tenders Seminar

22 November The Power of Being Small Conference

28 November Managing IPR for your business in China Seminar

28-29 November Business Roadshow Tunisia Company Mission

28-29 November Mission for Growth - Portugal Company Mission

ForTHCoMING business events

2 • networking4enterprise Issue 48 November/December 2013

“Participating in International Tenders” Smart City, Malta | 21 November 2013The Malta Business Bureau and Malta Enterprise are organising an event on ‘Participating in International Tenders’ on the 21st of November (9.00 – 12.30hrs).

This event, which will be part of the SME Week 2013 activities, aims to provide more information to local SMEs on what it entails to be active on the international market through the submission of tenders. International and national expert speakers will provide an overview of the legislative framework of EU procurement rules, together with tips and best practices that should be taken note of prior to submitting a bid.

“The Power of Being Small”Gozo [venue to be confirmed] | 22 November 2013In collaboration with the Gozo Business Chamber, Malta Enterprise is holding a conference that will not only address today’s challenging realities faced by micro and small business entities but will also present the opportunities that can still be exploited by such entrepreneurs. Various tools, like creative thinking techniques and cooperation databases, together with other EU Funding Programmes, at the disposal of these businesses, will be outlined and discussed by expert speakers.

“Managing IPR for your business in China”Malta Enterprise offices, Pietà | 28 November 2013This half-day event is being held for those enterprises that are interested in carrying out business with Chinese SMEs. Representatives from the China IPR SME Helpdesk and the EU SME Centre in China shall be delivering presentations. These two entities are both involved in helping SMEs facilitate their access to the Chinese market by offering professional information and confidential advice through their vast portfolio of services.

Presentation topics will include:• The business culture in China;• How best to carry out business with the Chinese and how to enter the

market;• Technology Transfer between Malta and China;• Intellectual Property Rights for Maltese SMEs carrying out business

with China.

Business Roadshow TunisiaTunis-Gammarth, Tunisia | 28 – 29 November 2013 Within the framework of EuroMed@Change Project, supported by the European Commission,  ANIMA, APII and CONECT are cooperating to organise this event with the help of:• other Tunisian partners : FIPA, Pôles de compétitivité ;• European partners : the European Union Delegation in Tunisia,

EBN, Fondation Sophia Antipolis, INNO and Enterprise Europe Network, the large business support network funded by the European Commission, to help Small and Medium Sized enterprises in Tunisia and in 52 other countries to internationalise.

This is a two day cross-border innovative business event offering a unique concentration of SMEs and international groups, start-ups, entrepreneurs, innovation clusters and investors representing the following sectors: green tech, agri-food, renewable and conventional energy, environment, urban services, ICT, creative industries tourism and mining.

More than 290 business profiles have already been uploaded on the website below. Participating companies from Malta interested in setting one-to-one meetings with these foreign entrepreneurs may benefit from a partial reimbursement of their travel costs, subject to terms and conditions.

More details on: http://www.b2match.eu/euromed/pages/tunis

Mission for GrowthLisbon, Portugal | 28 – 29 November 2013 More than 310 Portuguese companies seeking to cooperate with Maltese and other European companies will be attending this unique B2B event, spearheaded by the EU Commision’s Vice President Antonio Tajani. Other companies that have already registered for this Mission come from Germany, Netherlands, Greece and Italy.

Maltese businesses who have never entertained the idea of doing business with Portugal should keep in mind that Portugese entrepreneurs are the gatekeepers to markets like Brazil and Angola, which are relatively new to Malta’s SMEs but which offer great untapped potential.

The full agenda and business profiles may be found on http://www.b2match.eu/m4g-portugal

To register for any of the above mentioned events, or to simply obtain more details,readers are kindly asked to immediately send an email to info@enterprise-europemalta.com

networking4enterprise Issue 48 November/December 2013 • 3

In the time of economic crisis a number of companies are looking for various and effective ways to optimise their business in order to minimise their costs, to keep or gain their existing market share and to gain an overall competitive advantage, in both local and international markets. One such way is called outsourcing.

Outsourcing is therefore an arrangement in which one company provides services for another company that could also be or normally would have been provided in-house. Outsourcing is a trend that is becoming even

more common in information technology and other industries for services that have usually been regarded as intrinsic to managing a business. In some cases, the entire information management of a company is outsourced, including planning and business analysis, as well as the installation, management, and servicing of the network and workstations. Outsourcing can come in various forms and shapes and thus can range from the large contracts in which a company like IBM manages IT services for a company like Xerox, to the practice of hiring contractors and temporary office workers on an individual basis.

Such outsourcing is an effective cost-saving strategy as particular activities can be passed on to a third party with a competitive advantage which can provide the goods and service on lower costs than a company would try to produce it on its own. For instance, outsourcing can save money on building infrastructure, new capacities, and buying new technology, and thus brings overall cost advantages.

In addition to cost saving, outsourcing also brings the following opportunities:

Focus on core competences: a company should determine its core competences

4 • networking4enterprise Issue 48 November/December 2013

and try to improve on them to gain a stable position in a market. Core competences are those that give a company its clear leadership in position as seen by its customers. All other activities are non-core and can be outsourced. It is very important to distinguish between the two to be able to determine the company’s uniqueness so as to lead to success. Thus, outsourcing helps to focus on the core competences, to improve it, and save money on non-core ones.

Professional, expert and high-quality services: outsourcing brings access to highly skilled and fully trained people and up-to-date advanced technologies that a company could not afford to probably buy on its own. For instance, a company providing IT services can outsource its accounting to an external firm and therefore does not necessarily have to keep its own in-house accountant. This means that the IT company can invest more money on IT specialists to improve its services, while on the other hand can still be sure that the accounting is done correctly and professionally.

Faster and better service: normally the work carried out by the outsourced professionals takes less time and this improves efficiency and leads to enhanced customers’ satisfaction.

Time zone coverage: sometimes when a company operates internationally, it brings communication problems between the mother company and its subsidiaries. Outsourcing and off-shoring (outsourcing in a different country) help to cover the time zone differences for better and more effective communication.

Development of internal staff: outsourcing brings new skilled people to a company and its current employees can then work alongside while also acquiring new skills.

Share of business risks and/or flexible capacity management: Periods of high employee turnover will add uncertainty and inconsistency to the company’s operations and thus outsourcing will provide a level of continuity to the company while reducing the risk that a substandard level of operation would bring. Moreover, it further enables the company to manage its employees better as the task of hiring personnel is passed on to an external provider whereby certain output quantity/quality, number of hours, or any other type of commitment can be worked out to its advantage.

Besides all the positive aspects outsourcing brings, one has also to be aware of its negative side as well, such as:

Outsourcing eliminates the direct communication with clients: it can cause delayed communication and project implementation.

Hidden costs are difficult to calculate: outsourcing can bring some unexpected expenditures that can be hard to anticipate.

Management and control problems: off-shoring can challenge control in organizations abroad due to lack of face-to-face communication.

Failure to deliver: the external provider of a service can fail in its delivery and can lead to delay in operations, delay of implementation of a project, dissatisfaction of a client and similar resulting in a negative reputation of the outsourcing company.

Confidentiality issues: there is a risk of fraud from the third party as it can betray the outsourcing company and reveal some company’s secrets. Hence, it is very important to find a trustworthy service provider.

Possible loss of flexibility in reacting to changing business conditions: outsourcing may result to the possible loss of flexibility in reacting to changing business conditions, lack of internal and external customer focus and sharing of cost savings. Furthermore, loss of internally produced talent is another problem associated with outsourcing as it may slow down the growth of an employee by depriving him/her from the experience he/she would have gained by handling the business issue himself, as opposed to passing it over to some other external party.

However, outsourcing is not suitable for all companies and all types of business. So, as mentioned earlier, some of the most common outsourced types of work are IT

and legal services, content development, web design and maintenance, recruitment, logistics, manufacturing and technical/customer support.1 Before an entrepreneur decides to outsource, he/she should consider the following issues2:

If the process can be performed and managed from a remote location;

If it is costly to perform inside its own company;

If it is difficult to build the necessary capacity for;

If the activities are distracting a company from its core competences;

If the activities require a certain level of flexibility in terms of staffing and/or capacity.

Having said all, if a company is aware of all the drawbacks of outsourcing and it has non-core functions that can be streamed to external providers, then outsourcing is a good way to optimise its production, lower costs and so rejuvenate itself. Thus, if a company finally decides to outsource, it is necessary to choose the right service provider. Entrepreneurs should look for the third party that fits well to the company and its philosophy. Such a partnership is like a marriage - a company should look for a partner it can rely on and that the relationship can last for a long time. The company should look at the commitment to quality and look beyond the obvious players, as the best option is not always the most famous service provider which is the most suitable for the business concerned.3

1 http://www.flatworldsolutions.com/articles/advantages-disadvantages-outsourcing.php

2 http://www.microsourcing.com/info/outsourcing-for-you.asp

3 http://www.sourcingmag.com/content/c050620a.asp

networking4enterprise Issue 48 November/December 2013 • 5

INTERMEDIaRy ORGaNISaTIONS

BaSIC STRUCTURE OF ThE PROGRaMME

PRaCTICal INDUCTION

Co-ordinationSupport Matching

New entrepreneur going abroad

to learn from an experienced entrepreneur

learning on the job, exchange of experience, market access, networking

Experienced host entrepreneur established

in another EU country

1-6 months stay abroad

Erasmus for young Entrepreneurs is a cross-border exchange programme which gives new or aspiring entrepreneurs the chance to learn from experienced entrepreneurs running small businesses in other European countries. The exchange of experience takes place during a stay with the experienced entrepreneur, which helps the new entrepreneur acquire the skills needed to run a small firm.

The host benefits from fresh perspectives on his/her business and gets the opportunities to cooperate with foreign partners or learn about new markets. The stay is partially funded by the European Union.

Whether you are a new or highly experienced entrepreneur, the programme can offer strong added value to your business: possible benefits include exchange of knowledge and experience, networking opportunities across Europe, new commercial relations or markets abroad.

Who can participate?New entrepreneurs, who are firmly planning to set up their own business or have already started one within the last three years and experienced entrepreneurs who own or manage a Small or Medium-Sized Enterprise. BenefitsA new entrepreneur will benefit from on-the-job training in a small or medium-sized enterprise in another EU country. This will ease the successful start of his or her business or strengthen the new enterprise. A new

entrepreneur can also benefit from access to new markets, international cooperation and potential possibilities for collaboration with business partners abroad. A host entrepreneur can benefit from fresh ideas from a motivated new entrepreneur on his or her business. The new entrepreneur may have specialised skills or knowledge in an area the host entrepreneur does not master. Most host entrepreneurs enjoyed the experience so much that they decide to host other new entrepreneurs afterwards. It is really a win-win collaboration whereby both new and host entrepreneur can also discover new European markets or business partners, as well as different ways of doing business.

The European exchange programme

for entrepreneurs are you an aspiring entrepreneur and thinking of starting your own business, or have you recently done so? Or are you an experienced Entrepreneur who is already running a successful business and would like to expand it to new markets, or get fresh ideas?

Then the Erasmus for young Entrepreneurs could be the programme for you!

On the longer-term, both will benefit from wide networking opportunities, and, maybe, decide to continue collaborating, possibly as long-term business partners (e.g. joint ventures, sub-contracting activities, contractor-supplier relationships, etc).

The main website www.erasmus-entrepreneurs.eu provides all the necessary information about the programme. A web-based database linked to the website allows new and host entrepreneurs to submit applications and offers to participate in the programme.

Malta Enterprise has been appointed as Intermediate Organisation in Malta. We can provide more information and assist interested entrepreneurs with the application. For more information kindly contact Pedro Alvarez on pedro.alvarez@maltaenterprise.com.

6 • networking4enterprise Issue 48 November/December 2013

as highly developed economies, Japan and Korea are important partners for the EU and offer major business opportunities. at the same time, European companies might experience difficulties to access these markets. Differences in business culture or regulatory requirements are only two of the challenges companies need to overcome.

The Executive Training Programme is a unique opportunity for Maltese and European executives and companies to expand their businesses in Japan and Korea through active learning combining business and language training, an internship in a local company, and support for business plan development. The EU funds the entire programme and provides a scholarship throughout for each participant. The European Commission helps European executives by funding the entire training course of 45 weeks run by internationally recognized universities and providing a scholarship of 26,400€ for Japan (2,200€ a month) and 24,000€ for Korea (2,000€ a month) for each ETP participant.

On the other hand the EU Gateway Programme organises and funds Business Missions in high technology and design sectors for European companies to develop their business in Japan and Korea. Participating companies benefit from an attractive package of coaching, trategic and logistical services as well as financial support.

In order to be eligible for participation, companies must have operated for at least 5 years; they are fully or majority-owned by EU capital; and be located and having its main activities in the European Union, Moroever, applicants must be active in one of the economic sectors covered by the EU Gateway Programme and have a proven track records of international business cooperation, plus a solid business strategy for entering the Japanese and/or Korean markets. In addition, companies must have a sufficient turnover and number of people employed to guarantee a market entry to Japan and/or Korea. Note that business consultants are not eligible.

In addition to the above mentioned general criteria, applicant companies must be active in one of the technology and design sectors covered by EU Gateway Business Missions (see table below) and its activities need to fall under the respective sector definition:

opportunities for Maltese and Eu Companies

IN JaPaN & KOREa• AreyouanewcomertotheJapaneseorKoreanmarket?• Doyouwishtoexpandyourbusinessactivities

andtapnewopportunities?• Then take advantage of the Executive Training Programme

and the EU Gateway Programme

 

Environment and Energy-related Technologies ✔ ✔

Healthcare and Medical Technologies ✔ ✔

Construction and Building Technologies ✔  

Information and Communication Technologies ✔  

Fashion Design ✔  

Interior Design ✔

The 2014 calendar of Business Missions is now available and applications are already being accepted. Interested readers are to click on the dedicated website for full details:www.eu-gateway.eu/business-missions

networking4enterprise Issue 48 November/December 2013 • 7

Cooperation opportunitiesBRUK20130913002a uK company active in the food & drink industry with experience in buying, selling, product and category development, supply chain, business and strategy planning is looking for European manufacturers with a secure supply chain interested in selling into the uK grocery industry. Connected to key decision makers in all the major supermarket chains means benchmarking through to listing can be achieved in a short time with a high (95%) level of success.

20081024001 BR This German company is a developer, producer and operator of bioreactors for the production of transgenic microalgae as an integrated system. These low-cost versatile reactors are ideally suited both for the production of ‘biofuel’-algae as well as food and/or feed algae. The company is looking for partners in order to market and to intensify the following activities: - the harvesting and extracting of microalgae - the installation of production systems in marine and fresh water environments - the installation and operating of low energy downstream systems The German company is looking for business partners to establish co-operations in terms of production, financing and technology.

BRDK20130912001Danish sME working as subcontractor on steel, stainless steel and aluminium structures (exsamples are attached) are looking for a subcontracting partner with similar production setup and quality. Main targeted countries are Bulgaria, rumania, ukraine and Lithuania but will consider other markets. The company is looking for a long term close and open cooperation - “integrated part of the company”, which should increase competitiveness towards existing and new costumers where price is of specific importance. The optimum partner should minimum fulfill the following: 1) Be able to communicate fluently in English (written and spoken) 2) Have the necessary capability/capacity (delivery on time and posses similar processes, e.i. welding, cutting bending etc.) 3) should have a management system and be able to work with certificates,

progress reports etc. (Iso 9001 would be an advantage) 4) Preferable experienced within both mild steel, stainless steel and aluminium. 5) Based relatively near airport or similar is an advantage.

BRBE20130925001The Brussels-based branch of a system integrator with expertise in electronics, HvaC, sanitary and special piping, industrial automation and telematics is looking for sMEs (NoT LEss than 50-80 people) having expertise in the areas of installing medium and low voltage electrical installations, HvaC and plumbing, willing to work as a subcontractor.

BRUK20130920001uK company, a global provider of car park reservation systems and online marketing services is looking for car park operators at airports, ports, train stations and city centres in Europe to create revenue from parking by connecting customers with parking spaces. Based in the uK, today the company operates in over 30 countries around the world and offers services in more than 25 languages. To make different car parks more visible they are placed side-by-side on price comparison websites. This allows consumers to draw their own conclusions on value for money and convenience. all consumer websites created by the company are designed to be quick and easy-to-use, with an integrated booking system; content is optimised to be search engine-friendly, clear and concise, to maximise visibility. The uK company is looking for car park operators, airports, port authorities, train stations and event venues in Europe to create revenue from parking by connecting customers with parking spaces through its car park reservation system.

BRES20130802001Independent spanish sales company specialized in trading of ICT products and solutions offers its trade and business development services to those foreign partners that want to sell their developments either in spain or worldwide, through spanish system integrators. The company stands up for its deep knowledge of the spanish ICT sector, having clients ranging from large corporations to governmental administrations.

20120921020 BRuK company who specialise in developing clients in the uK and internationally through a range of management and personal development training for individuals and large businesses are looking for joint venture partnerships in network countries. uK company has over 20 years of active operational management experience. Training interventions are designed to meet the specific needs of the customer.

20120430022 uK company providing virtual assistant and virtual office services is looking for subcontractors to deliver the services in other Eu countries. It is particularly looking for experienced Pa/Ea/secretaries with excellent written and spoken English who can provide secretarial and administrative support in their own country on behalf of the uK company’s clients. The uK company can offer flexible working hours at an excellent hourly rate of pay. Clients are matched to the potential partners’ experience.

BRDE20130913003The German Company as a computer retailer/ system house is specialized in IT-services, IT-Consulting, installation of hard- and software and maintenance. Classic products are server, storage, client-PCs, Backup- and virus protection solutions etc. The Company’s team of 13 high qualified professionals (employees and freelancers) works costumer- and solution-oriented with clients up to 250 employees. The Company is interested in introducing new IT-products and -services on the German market (commercial agency, distribution services and license agreement). They are also searching for co-operation partners (subcontracting/ outsourcing activities) in the field of software and software development to widen and expand their range of products and services. The system house benefits from a long-term operating experience in the international business. For two years they had a branch abroad in Poland. The Company was founded in 2006 and benefits from more than 20 years established expert know-how in the IT business.