CAMBODIA Name of incubator : Business Incubator Emerging Markets Consulting

94 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators

6.2. CAMBODIA Name of incubator : Business Incubator Emerging Markets Consulting

No Profile 1 Type of Incubator For Profit, sustainability 2 Focus in Incubation Women entrepreneurs, general services : cleaning construction, travel agent, solar cell. In the future : more in agricultural technol., and ICT application 3 Year Operation Start 2011 – 18 months, operational 12 months 4 Owner EMC is a successful expatriate consulting office working in several ASEAN countries Business Incubator, as the entity of EMC, is founded by 3 expatriate founding partners – 2 from USA + 1 from Laos 5 Management Business Incubator 8 staff : 3 engaging managers – 5 for event, marketing, and program. At present, one incubatee is taken care by 2 staff In the board member of Business Incubator, there is one member comes from the collaborating unit of RULE Royal University of Law and Economics and Francs. The staff of the collaboration unit also helps the business incubator for promotion 6 Targeted Clients University Graduates 7 Number of Clients On-going 3 : cleaning construction service, travel agent, solar panel. Second batch under recruitment : ICT application, bio digestor, peanut and cashewnut processor. 8 Business Model Phase 1 : 1-3 months working to get acquainted in informal working sessions Batch 1 : 5-10 companies are selected for Phase 1 Phase 2 : 3 companies moved into Phase 2, approved by Board of Director. Signed contract for one year structure plan, mentor was allocated. Incubation time in one year, than will be evaluated based on milestones. Incubatees could select to be resident or non-resident. In batch 1 : all selected to be non- resident. Requirement : Incubatees need 5 K USD in minimum of investment excluding asset. This is also related to requirement to be able to pitch with external investor. Track record : past job, revenue, past revenue, template, matrix, as justified and decided by the board. ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 95 9 Supporting Facilities and Services I. EMI Emerging Market Investment A unit investment fund under EMC. So far, EMI has provided 1 mil to 1.5 mill USD for 8 year funding already in operation for 2 yrs. It has already made 6-8 investments. EMI works for general SMEs in Cambodia, not specifically for incubatees. II. Services rendered by business incubator 1. Strategy services : understanding market, customer, sale, projection, business plan, reading financial statement, HR contract hiring etc. 2. Access to corporate services, need understand process, services provider. Understand establish contract, lawyers, outsource to technical laws with cheaper fees. 3. Access to financing: documentation preparation to investor, access program to financing institutions such as microfinance investment MFI with interest of30 , and external investors for 25 K USD with 10-20 equity 2-3 incubatees are expected to get funding with this external investors in less than 6 month. 10 Income Generation Supported for 2 years by infoDev, World Bank starting 2011. Incubation fee : 2000 USD in one year per incubatee, could be paid in several allocations or additional 1 equity + 6 from the equity of the business at the time the incubate ended the incubation period. 11 Key Success Factor Too early to be defined 12 Expectation to ASEAN Incubator Network 1. Share business models : finance, support team, tested different models. What it works, what it does not work. 2. Share information about successful business. Legal operation : Right templates to help the interpreneurs. Applicable template. Contract between incubator and incubatees. 3. Share expertise in knowledge and technology, and technology and knowledge transfer. 4. Funding across the ASEAN based on the competition i.e. 25 K winning price. 5. Specific Training Need: fashion designer for incubates 13 Your own enumerator analysis This is more or less founded after getting support from infoDev World Bank for 2 years, and expecting to get more in 3 years to come. This model requires initial grant from the third party to be able to replicate. 14 Lessons Learned • Expatriate business incubator might have broader network that will invite high interests of SME startup company in developing countries. • Impact of changed environment : how to prepare • Track record : past job, revenue, past revenue, template, matrix, as justification and decided by the board. • Cleaning formula – in SIRIM , Malaysia. 5 franchising business in Malaysia. • Franchising not yet in Cambodia. • Vietnam maybe in FB • Sustainability, now 2 years grant from infodev. Expect more 3 years. Target 10 per years. Now 1-2 yr operation. • How to share contract. For ASEAN Network. • Team : EME : 70-80 Khmer most S2. • EMC is more operational in practice day by day. 96 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators VBNK Institution of Training Center No Profile 1 Type of Institution NGO, not for profit 2 Focus in Activity Training 3 Year Operation Start 1997 4 Owner NGO operating as business 5 Management Board of Director – Executive Director, 33 staff : 12 admin, 21 program 14 MS 6 Targeted Clients NGO staff and government staff, also regional participants if customized by international organization. Training is conducted by 0-10 international speakers. Total 10-15 training has been done outside Cambodia. 7 Number of clients Over 25 institution client per year 8 Business Model Open access : 3 days 100 USDperson, 5 days 250 USDperson for 5 days for people work with NGO and government. Customize :examples : 1. Every year training supported by World Bank for an average of 300 thousand USD for 2008-2013. 2. Women leadership requested by UNDP 200 thousand USD for 60 participants for inception workshop, assessment of the training needs, develop the modules, 10 day training, impact assessment for six month. Not including food and accommodation. 3. Training on clean water :private rural water small co. for housing in the villages. Already trained 9 out of 300 existing companies. Note : Rural water small co grows because government water supply only cover big cities. Capital of investment is1 million USD, commonly obtained from bank loan with 13-15 interest rate per year. The customer pays .25 USD per m3 including piping system. 4. Training on strengthening business, billing system. 5. Produce software for water supply company: enterprise resource management system accounting, business management cooperation with IT co. templates. 9 Supporting Facilities and Services Training facility MIME Ministry of Industry, Mining, and Energy helps in technology aspect for the training 10 Income Generation Dutch Government 30 , others : UNDP, other NGO and clients sending trainees ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 97 11 Key Success Factors No 1 NGO for training rated by US univ survey 1. Ensure quality 2. Having regular quality working group 3. Design, monitoring, and evaluation system built in the organization. 4. Obtained Certificate of Compliance for 3 years 2011-2014 provided by Standard of governance NGO and certified by a consortium of NGO GPP : Governance Professional Practices . Compliance committee members 3. 5. In-direct link of Chamber of Commerce 12 Motivation to Establish Incubator Ready to build business incubator. Scale-up support to SMEs water and rice mill SMEs Increase efficiency among NGO accounting system 13 Expectation to ASEAN Incubator Network Technology transfer among AMS Share information 14 Your own enumerator analysis Big funding and successful of training centre claiming the best in nation. Should be encouraged to establish a business incubator. 15 Lessons Learned Challenge : funding for software investment Name of Incubator: Technology Incubator Center ILCC Industrial Laboratory Center of Cambodia No Profile 1 Type of Institution Not for Profit 2 Focus in Activity Food SMEs 3 Year Operation Start 2010, but not yet in full operation 4 Owner ILCC, General Department of Industry GDI, MIME Note: GDI task covers industry, techniques, standard, potable water supply, and metrology. ILCC is established in June 2005 for product analysis, supporting regulatory, product safety and QC, and quality management of industrial products. It has Food Chemical, Food Micro, Water Chemical, and non-food chemical laboratories. It had been leveled up to departmental status in 2009. 5 Management Under Director of ILCC. Not yet clear of the business incubator management. ILCC has 30 staff and 20 technical. 6 Targeted Clients Industry in Cambodia : 10 big industries : Coca cola, 3 beer, Pepsi, 2 drinking water, 2 instant noodles. Home industry about 1000 companies: chili sauce, fish sauce, soy sauce, meat ball, fresh noodle. 7 Number of clients No Data 8 Business Model So far only training. Training on GMP Good Manufacturing Practices, GPP Good Packaging Practices. Other activities : Food Product RD at Technology Incubation Room, sampling for food inspection. TA to SME in food Technical Assistance. 98 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 9 Supporting Facilities and Services Business Incubator has Meeting Room 100m2 and Working room 150 m2. ILCC is supported by government, Danida, Unido I, II and III: non-food, ADB phase I and II: food safety, MOST-China: food industry joint lab cooperation especially for incubation. Food Micro Lab accredited by NATA-Australia, also evaluated in 2012, Food Chem Lab accredited by Singapore until 2012. 10 Income Generation Not yet for business incubator, while ILCC only charged small fee to food samples analysis according to government regulation 11 Key Success Factors Not Applicable 14 Your own enumerator analysis With the government fully support, ILCC could develop the business incubator. Building and rooms are already provided. However, there is at present limited resources provided by the government. 15 Lessons Learned Business incubator should find other resources next to government in supporting the operation. Economic Project – A Collaboration Unit of Royale University of Law and Economics, Cambodia with French University No Profile 1 Type of Institution Not for profit 2 Focus in Activity Education and training. Double degree program for 70 MS students. Double degree programs are run for in economic management. 3 Year Operation Start 1998 15 years ago.Cooperation partners :University of Lyon. France–Lyon 1, Lyon 2, Lyon 3; currently University of Lille 4 Owner RULE 5 Management Head, expert from France, and 3hired staff with MS degree in project management and entrepreneurship, insurance bank and finance, and public management ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 99 6 Targeted Clients Graduates, 5-10 built start-up company. 7 Number of clients Not applicable 8 Business Model Not applicable 9 Supporting Facilities and Services Function as member of Board in the Business Incubator of EMC Other Services : training, business plan developmenthowever, no follow up after the trainingconsultancy in business and law, networking with alumni. RULE has URC University Research Centrefinanced by research activities from World Bankfor18 months. One URC in eco management, and other URC in Law. 10 Income Generation Not applicable 11 Key Success Factors Not applicable 12 Motivation to Establish Incubator Rector Office already agreed in business incubator establishment, since students show interest to build up start-up company. Spaces for business incubator are already available. 13 Challenges Government ability to support university is limited. Under current situation only 10 university staff at state universities is hired by government as civil servants. 13 Expectation to ASEAN Incubator Network Funding and capacity building for business incubator. 14 Your own enumerator analysis The requirement for business incubator in RULE is the support of funding from international organization. Market for business incubator is exist, but availability of funding is still limited. 15 Lessons Learned Holistic approach by government to escalate the SME development is in highest priority. 100 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators

6.3. INDONESIA Name of incubator : Incubie IPB, Bogor