Entrepreneurship is a Mindset, Not a Mandate
29 November 2010
Read by 1456 persons
For a long time, the Bank for Financing Small and Medium Enterprises (BFPME) has been seen as a tool for boosting private initiative among young people. But have we discussed the success stories? Created in 2005, the BFPME has supported young Tunisian entrepreneurs throughout its five years of existence. In a short time, it has become an essential part of Tunisia's banking landscape.
Initially, the bank financed projects in coordination with commercial banks. Now, it can fully finance projects costing up to 300,000 dinars. It assists young entrepreneurs with project diagnostics and studies, evaluation, financing without collateral, and project implementation and monitoring.
Statistically, in the first nine months of 2010 alone, 984 projects were approved, costing over 700,000 dinars. 518 projects were launched, costing more than 300,000 dinars. The most popular sectors include agri-food, IMCCV (presumably a Tunisian industry sector acronym), services, mechanical and metallurgical industries, textiles and clothing, etc.
A Difficult Bet…
“Being a SME itself,” says its CEO Khelil Ammar, “the challenge was significant: creating a new institution to help SMEs. Our motto is to provide maximum credit in the shortest possible time. The bank's sustainability depends on this, provided that the projects are innovative and the applications are well-prepared,” he adds. A difficult bet, but the bank seems to have succeeded, financing many innovative projects.
To emphasize this unique aspect of the bank, an open house week was organized as part of Global Entrepreneurship Week, featuring events to raise awareness among young people and future entrepreneurs about BFPME's financing mechanisms, tools, and training. On October 12, 2010, a session was dedicated to presenting success stories at the bank's new headquarters.
The bank's amphitheater was packed. Attendees included students, entrepreneurs, and bank executives, notably Mr. Ammar, the CEO, who participated in the discussions. Hearing an entrepreneur recount their project's journey is captivating, especially if the project succeeded. However, it's less obvious for a future entrepreneur to commit to such a long process, especially since the four selected entrepreneurs were middle-aged—in their forties—before a largely young audience.
However, this is an advantage, according to Chiheb Kooli, CEO of CK Métrologie, since a young entrepreneur doesn't necessarily start their project immediately after leaving school. “Working for a few years in a company provides the young entrepreneur with moral resilience…. This allows them to adapt to the work environment, to have real references that enable them to properly study the market and know how to overcome the various challenges in creating their project,” he says.
According to him, a recent graduate launching their own business directly would be more vulnerable and immature in managing the risks and obstacles they would face. Mr. Kooli, who launched his project in July 2006, emphasizes his good fortune in starting with the BFPME's creation. “My recommendation to young entrepreneurs is to take the necessary time to study the project. The most pessimistic scenarios should also be considered to anticipate unforeseen circumstances,” he advises.
Meeting Market Needs…
Ahmed Ernez, CEO of Biome Solar, called for market awareness. He states that his project stemmed from an observation: the market demands solar water heaters. Launched in September 2006, the company is a joint venture with a German company specializing in marketing solar water heaters. As proof of success, its market share reached 15-17% in 2010, and he plans to expand the project by creating another production unit in 2011.
But the most surprising testimony came from Abdel Malek Ghannam, CEO of SOIB. With an academic background in communication, he was a university professor. His construction company is the realization of a dream. As a civil servant, he took leave to create his business. The product he markets is quite innovative in Tunisia: compressed earth blocks replacing traditional construction blocks.
“It was a dream for me. While I was a state employee with financial security, I embarked on this adventure. A well-calculated adventure, because to launch a project, the idea must be innovative enough to guarantee success in the market. The entrepreneur must also believe in their idea and work to realize it properly,” he says.
Entrepreneurship: A Calculated Approach…
This type of testimony proves that entrepreneurship is a mindset, not a forced approach. While the benefits of business creation for young people, especially recent university graduates, are often touted as a solution to employment problems, not everyone can be an entrepreneur! Entrepreneurship must be a calculated approach. “It's important to know from the start if you want to be an entrepreneur. The best time to find out is during your studies, when the student is not yet under pressure. They have time for internships, temporary work in companies. They also have time to develop their project ideas, observe the market, etc.,” recommends Mr. Ammar to the young people present.
An entrepreneur must also be aware that they will face difficulties in setting up their project. The study phase is crucial and should consume most of their time. “80% of the time should be devoted to the design and formulation of the project,” says Mr. Ghannam, who states that his project study took three years. The administrative burden should also be considered. Mr. Kooli says he had to wait six months for his building permit in the new Chotrana industrial zone. But these obstacles shouldn't discourage young entrepreneurs.
Acknowledging the Challenges…
Regarding financing, the entrepreneur must understand that using the BFPME is a first step. It supports access to commercial banks for management credit, essential for the sustainability of any large, medium, or small business. Using SICAR and FOPRODI (presumably Tunisian financial institutions) is also essential to strengthen the company's equity, notes Farès Ghannouchi, CEO of the Essouassi poultry company. Mr. Ernez, however, criticizes these two mechanisms, as credit release only occurs after a year of project launch.
In his speech, Mr. Ammar also emphasizes that young entrepreneurs shouldn't focus solely on financing initially. “Think about the idea, observe, and assess. You should also be aware of the difficulties, but I assure you they are the same everywhere in the world. The main challenge in creating an SME is that the entrepreneur does everything. They do all the work and can't afford to make mistakes. But on this point, I assure you that the BFPME will support you throughout the creation process and in setting up your project,” he says.
Is entrepreneurship that simple? The entrepreneur must be passionate but also adventurous. “I have a dream!”, says Mr. Ghannam, quoting a certain King. A dream he realized despite all obstacles. It's enough to believe in your idea and yourself.
There are already 92 employment offices in Tunisia, averaging 4 or 5 offices per governorate. The goal is to cover the delegations far from the nearest employment offices,” he adds.
Published November 18, 2010
Posted online November 29, 2010
webmanagercenter.com
Initially, the bank financed projects in coordination with commercial banks. Now, it can fully finance projects costing up to 300,000 dinars. It assists young entrepreneurs with project diagnostics and studies, evaluation, financing without collateral, and project implementation and monitoring.
Statistically, in the first nine months of 2010 alone, 984 projects were approved, costing over 700,000 dinars. 518 projects were launched, costing more than 300,000 dinars. The most popular sectors include agri-food, IMCCV (presumably a Tunisian industry sector acronym), services, mechanical and metallurgical industries, textiles and clothing, etc.
A Difficult Bet…
“Being a SME itself,” says its CEO Khelil Ammar, “the challenge was significant: creating a new institution to help SMEs. Our motto is to provide maximum credit in the shortest possible time. The bank's sustainability depends on this, provided that the projects are innovative and the applications are well-prepared,” he adds. A difficult bet, but the bank seems to have succeeded, financing many innovative projects.
To emphasize this unique aspect of the bank, an open house week was organized as part of Global Entrepreneurship Week, featuring events to raise awareness among young people and future entrepreneurs about BFPME's financing mechanisms, tools, and training. On October 12, 2010, a session was dedicated to presenting success stories at the bank's new headquarters.
The bank's amphitheater was packed. Attendees included students, entrepreneurs, and bank executives, notably Mr. Ammar, the CEO, who participated in the discussions. Hearing an entrepreneur recount their project's journey is captivating, especially if the project succeeded. However, it's less obvious for a future entrepreneur to commit to such a long process, especially since the four selected entrepreneurs were middle-aged—in their forties—before a largely young audience.
However, this is an advantage, according to Chiheb Kooli, CEO of CK Métrologie, since a young entrepreneur doesn't necessarily start their project immediately after leaving school. “Working for a few years in a company provides the young entrepreneur with moral resilience…. This allows them to adapt to the work environment, to have real references that enable them to properly study the market and know how to overcome the various challenges in creating their project,” he says.
According to him, a recent graduate launching their own business directly would be more vulnerable and immature in managing the risks and obstacles they would face. Mr. Kooli, who launched his project in July 2006, emphasizes his good fortune in starting with the BFPME's creation. “My recommendation to young entrepreneurs is to take the necessary time to study the project. The most pessimistic scenarios should also be considered to anticipate unforeseen circumstances,” he advises.
Meeting Market Needs…
Ahmed Ernez, CEO of Biome Solar, called for market awareness. He states that his project stemmed from an observation: the market demands solar water heaters. Launched in September 2006, the company is a joint venture with a German company specializing in marketing solar water heaters. As proof of success, its market share reached 15-17% in 2010, and he plans to expand the project by creating another production unit in 2011.
But the most surprising testimony came from Abdel Malek Ghannam, CEO of SOIB. With an academic background in communication, he was a university professor. His construction company is the realization of a dream. As a civil servant, he took leave to create his business. The product he markets is quite innovative in Tunisia: compressed earth blocks replacing traditional construction blocks.
“It was a dream for me. While I was a state employee with financial security, I embarked on this adventure. A well-calculated adventure, because to launch a project, the idea must be innovative enough to guarantee success in the market. The entrepreneur must also believe in their idea and work to realize it properly,” he says.
Entrepreneurship: A Calculated Approach…
This type of testimony proves that entrepreneurship is a mindset, not a forced approach. While the benefits of business creation for young people, especially recent university graduates, are often touted as a solution to employment problems, not everyone can be an entrepreneur! Entrepreneurship must be a calculated approach. “It's important to know from the start if you want to be an entrepreneur. The best time to find out is during your studies, when the student is not yet under pressure. They have time for internships, temporary work in companies. They also have time to develop their project ideas, observe the market, etc.,” recommends Mr. Ammar to the young people present.
An entrepreneur must also be aware that they will face difficulties in setting up their project. The study phase is crucial and should consume most of their time. “80% of the time should be devoted to the design and formulation of the project,” says Mr. Ghannam, who states that his project study took three years. The administrative burden should also be considered. Mr. Kooli says he had to wait six months for his building permit in the new Chotrana industrial zone. But these obstacles shouldn't discourage young entrepreneurs.
Acknowledging the Challenges…
Regarding financing, the entrepreneur must understand that using the BFPME is a first step. It supports access to commercial banks for management credit, essential for the sustainability of any large, medium, or small business. Using SICAR and FOPRODI (presumably Tunisian financial institutions) is also essential to strengthen the company's equity, notes Farès Ghannouchi, CEO of the Essouassi poultry company. Mr. Ernez, however, criticizes these two mechanisms, as credit release only occurs after a year of project launch.
In his speech, Mr. Ammar also emphasizes that young entrepreneurs shouldn't focus solely on financing initially. “Think about the idea, observe, and assess. You should also be aware of the difficulties, but I assure you they are the same everywhere in the world. The main challenge in creating an SME is that the entrepreneur does everything. They do all the work and can't afford to make mistakes. But on this point, I assure you that the BFPME will support you throughout the creation process and in setting up your project,” he says.
Is entrepreneurship that simple? The entrepreneur must be passionate but also adventurous. “I have a dream!”, says Mr. Ghannam, quoting a certain King. A dream he realized despite all obstacles. It's enough to believe in your idea and yourself.
There are already 92 employment offices in Tunisia, averaging 4 or 5 offices per governorate. The goal is to cover the delegations far from the nearest employment offices,” he adds.
Published November 18, 2010
Posted online November 29, 2010
webmanagercenter.com
