Lecture 1 & 2 PDF

Lecture 1 Associate prof :Marwa Sadek  Lecture 2 Associate professor: Marwa Sadek  What are SMEs? Small Medium Enterprises (SMEs) play avital role in economic development of many countries around the world especially the developing countries as they contribute in terms of...

Lecture 1 Associate prof :Marwa Sadek  Lecture 2 Associate professor: Marwa Sadek  What are SMEs? Small Medium Enterprises (SMEs) play avital role in economic development of many countries around the world especially the developing countries as they contribute in terms of economy and employments are defined differently by each nation according to its economic development phase and social environment. The standards vary from one country to another because of their varying potential. capabilities. economic conditions. The evaluation of the size of the project may vary within the country itself, depending on the stages of growth in the country's economy and its economic and social conditions such as the nature of the factors of production. SMEs definition according to the LAW 41 (2004) called the small enterprise development law for small enterprises which defines SMEs according to capital and employment: A small enterprise is any enterprise whose capital is more than fifty thousand Egyptian pounds and less than one million Egyptian pounds employing less than fifty employees. - A medium enterprise is any enterprise whose capital is more than one million Egyptian pounds and less than five million Egyptian pounds employing less than hundred workers. - The Egyptian central bank defines a small enterprise in terms of capital and turnover. - A firm is considering to be an SME if its capital is not less than fifty thousand and not more than five million Egyptian pound and its annual is more than one million and is less than twenty million Egyptian pounds. The world bank is one of the most important institutions that support SMEs in Egypt and in all developing countries. it defines SMEs in terms of employment and turnovers, no matter what capital is, a firm is to be considered a small one when it employees from eleven to fifty employees. and its annual sales is from three to fifteen million dollars, while it is considered to be medium enterprise if it employs from fifty to three hundred employees and the annual total sales is between fifty million to hundred million dollar. project: - An individual or collaborative enterprise that is carefully planed to achieve a particular aim a research project. A project is defined as a sequence of tasks that must be completed to attain a certain out come according to the project management. Institute (PMI) the term project refers to “ any temporary endeavor with a definite beginning and end”. Depending on its complexity it can be managed by a single person or hundreds. A project is defined ( also known as a project charter ) is a document that established the key objectives and terms of a project. Good project definition paves the way for on-time and on budget delivery because it lowers the chance of scope creep, budget over run and employee burnout. Small project: is short in duration , typically lasting less than six months and usually part-time in efforts hours has 10 or fewer team members. How do I start a small project ? 1 - define your goals.first things :decide what you want to achieve. 2- identify your team members. 3- define your work. 4- develop your plan. 5- delegate (smartly). 6- execute and monitor. Resource Planning for professional services : The professional services sector is broad and encompasses a variety of industries from IT and marketing to law and accounting. Despite the varied nature of these professions each benefits from project managers and team leaders talking a strategic approach to resource and capacity planning. In project management a resource is anything that is needed to complete a task or project. This can include people, materials, time and even finances. Because most companies and organizations do not have unlimited finances or personal.it is vital that project managers are tactical in deploying these resources. In some organizations a dedicated resource manager may be hired to ensure the limited materials labor and finances are being properly utilized. SME Productivity : Productivity can be defined simply as a total output produced per input within an economy. A small and medium-sized enterprise is defined as a company that employs under 250 employees. A small business is a company that has fewer than 50 employees and a micro business employs fewer than 10 people. Productivity is a key driver of long-term economic growth. Many factors affect SME productivity, both external and internal to the firm. Most famous are competition and openness to trade. At the firm level, key drivers of SME productivity include managerial and workforce skills, and innovation, access to technology, access to business networks and to financial resources. Digital for SMEs and Entrepreneurs : Digitalization is re-shaping the world economy. Digital technologies offer new opportunities for start-ups and established small and medium-sized enterprises (SMEs) to participate in the global economy, tap into skills and talent, access diverse financing instruments, innovate and grow. However, uptake of digital technologies is uneven and many SMEs are lagging behind, particularly in the adoption of productivity-enhancing digital tools and applications. Thus, they help in forming the GDP and increasing the national export and play role in maintaining the social‐political stability in a country. SME and Financing : SME finance is the funding of small and medium-sized enterprises, and represents a major function of the general business finance market Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity asset-based finance and government funding in the form of grants or loans. Across all stages of their life cycle, SMEs require access to appropriate sources of financing for their creation, survival and growth. Although SME access to bank finance largely recovered after the financial crisis, long-standing challenges remain such as information asymmetries, high transaction costs, and lack of financial skills and knowledge among small business owners. - In addition, the potential of financing instruments other than straight debt often remains underdeveloped. - Micro-enterprises, innovative ventures, start-ups and young firms tend to face more difficulties in accessing finance.  Lecture 1 Associate prof :Marwa Sadek  No Image  No Image  No Image  No Image  No Image  No Image  No Image  No Image  No Image  Lecture 3 Associate professor: Marwa Sadek To achieve the best results with the MPMM Project Management Methodology, we recommend that you scale it up or down to fit each project's size and particular needs. You do not need to adopt MPMM in its entirety for every project within your business. Instead, MPMM is designed to help you 'pick-and- choose' specific activities within the Project Life Cycle that will add maximum value to your project. The following matrix lists the project activities typically undertaken for small, medium and large projects Project Sizes: MPMM helps you deliver any size of project. MPMMTM is a scalable Project Management Methodology, meaning you can scale it up to fit larger projects and down to fit smaller projects. Of course, you define the terms 'larger' and 'smaller' however most Project Managers define a project's size based on the: - Total financial resources available - Number of team members involved Number and size of deliverables to be produced - Complexity of deliverables to be produced Timeframes involved in delivery As the project size increases, the complexity of the project will often increase as well, as illustrated in this diagram:  Small Projects Medium Projects Large Projects Establish Terms of Develop a Business Case Develop a Business Case Reference Establish Terms of Undertake a Feasibility Appoint the Project Team Reference Study Set Up the Project Office Appoint the Project Team Establish Terms of Set Up the Project Office Reference Perform a Phase Review Appoint the Project Team Set Up the Project Office Initiation Perform a Phase Review  Small Projects Medium Projects Large Projects Create a Project Plan Create a Project Plan Create a Project Plan Create a Quality Plan Create a Quality Plan Create a Resource Plan Create a Communications Create a Risk Plan Create a Financial Plan Plan Create a Communications Plan Create a Quality Plan Contract Suppliers Create a Risk Plan Perform a Phase Review Create an Acceptance Plan Create a Planning Communications Plan Create a Procurement Plan Contract Suppliers Define the Tender Process Issue a Statement of Work  Small Projects Medium Projects Large Projects Build Deliverables Build Deliverables Build Deliverables Monitor and Control Monitor and Control Monitor and Control Perform Time Management Perform Time Management Perform Cost Management Perform Cost Management Perform Quality Management Perform Quality Perform Change Management Management Perform Risk Management Perform Change Perform Issue Management Management Execution Perform Communications Perform Risk Management Management Perform Issue Management Perform a Phase Review Perform Procurement Management Perform Acceptance Management Perform Communications Management Perform a Phase Review  Small Projects Medium Projects Large Projects Perform Project Closure Perform Project Closure Perform Project Closure Review Project Document with Project Document Project Completion Closure Report Closure Report Complete Project Closure Complete Project Closure Actions Actions Review Project Completion Review Project Completion Undertake Post- Closure Implementation Review  Lecture 4 associate prof: Marwa Sadek  The Importance of SMEs in Economic Development: SMEs play a vital role in the industrial modes of developed and developing countries in the present global economy. They are concerned as the most dynamic ventures in the global economy and play avital role in developing the human well-being of any country. According to recent evidence: SMEs account for 90 percent of ventures and employing about 60 percent labor force in the world he role of SMEs in expanding local development is more vital to eradicating poverty, inequality, and unemployment in rural sectors as SMEs support people to fulfill their basic needs and help for marginalized groups.  SMEs encourage inclusive and sustainable economic growth and reduce inequalities, by engaging in favor of the United Nations Sustainable Development. Goals The most significant fact is that SMEs benefit the economy of its capacity for utilizing local resources such as : the local raw materials. generation of local savings. supply chances for self-employment. and chances for training semi-skilled laborers via apprenticeship In the production sector.  SMEs play avital role as specialist suppliers of components: parts, and assemblies for large-scale firms because SMEs manufacture such necessities at a lower price that is cheaper than the cost of the same product when produced by larger firms. The Egyptian economy is one of the more diversified economies in the Middle East: tourism, agriculture, manufacturing and services sectors all contribute with semi- equal ratios to the gross national product. Egypt ‘s current social and political transformation poses historic challenges and opportunities for its economic development and growth.  The lack of employment opportunities, particularly for youth under the age of thirty-five, has been cited as one of the principal causes of the Egyptian revolution and the country’s political unrest, which has taken its toll on the Egyptian economy. With political uncertainty and economic slowdown, there is an ever more urgent need to create jobs for young Egyptians. Unemployment has reached its highest level, particularly among women and youth in Upper Egypt, at 13.4% in 2013. (Central Agency for Public Mobilization and Statistics) Micro, small and medium enterprises (MSMEs) are the backbone of any economy. Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies These numbers are significantly higher when informal SMEs are included According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.  Global Challenges of SMEs: MSME sector development in Egypt is held back by numerous challenges related to the regulatory environment financial infrastructure financial institution lending capacity enterprise management skills, enterprise creditworthiness liquidity of the financial intermediaries and the availability of risk- sharing instruments Scholars have studied various types of challenges faced by SMEs in developed and developing.  economies in the economic globalization era. Among them, the literature has highlighted the question of capital instability innovativeness, regulatory licenses axes workers’ rights, and competitiveness three competitive challenges, namely the global challenge sustainability challenges and technological challenge were noted in a viewpoint of business management..  the review first categorized the global challenges into eight thematic areas by applying content analysis techniques to the selected literature They are:(1) the market competition, (2) global capital and economic crisis (3) information communication technology (4) transnational corporations (5) international terrorism and religious conflicts (6) international trade war and (7) international dumping.  Lecture 5 Small & Medium Projects Associate Prof. Marwa Sadeq What is an SME in Egypt? in Egypt, the Central Bank of Egypt (CBE) considers enterprises with a business volume between EGP 1 million and 50 million to be small and those with a volume from EGP 50 million to 200 million to be medium-sized. What are the examples of micro small and medium enterprises? Businesses that are categorized into MSMEs can be of any variety. They could be in the form of food carts, grocery shops, or service businesses how many small and medium enterprises are there in Egypt? Egypt is home to as many as 2.5 million SMEs, which account for over 90% of active enterprises in the country and contribute to over 80 percent of GDP, according to the Organization of Economic Co-operation and Development. What are the three types of SME? in Europe, there are three broad parameters that define SMEs: Micro-enterprises have up to 10 employees. Small enterprises have up to 50 employees. Medium-sized enterprises have up to 250 employees  What are the problems with SMEs in Egypt? SMEs in Egypt have a main problem regarding local market networks and lack of market information and insufficient resources. Also, weak correlation between SMEs and large scale businesses and low investment in market research and media.  What are examples of SMEs? Examples of small to medium-sized enterprises Hair and beauty salons. Dental practices. Medical centers. Bars, cafes and restaurants. Many online retailers. Gyms There are several objectives of SMEs, including: – To increase the competitiveness of the enterprise – To promote entrepreneurship – To encourage innovation – To create jobs – To contribute to economic growth  What are the four key features of SMEs? Features of SMEs Being run by a single individual or small team of people. Having a physical location and/or online operation. Being the sole employment or as part of a hobby/side hustle. Existing in one or more sectors of the economy  What are the components of SMEs? SMEs incorporate all of the small and medium sized enterprises such as industrial service, commercial and agricultural ones and are divided into Micro, Small and Medium enterprises based on factors such as employed number of human resources. - Stages of Small Business Growth Stage I: Existence. In the beginning, small business owners are most concerned about finding and signing up customers and being able to deliver their products and services.... Stage II: Survival.... Stage III: Success.... Stage IV: Take-off....  Lecture 6 Small and medium projects  What Is a Feasibility Study? How to Conduct One for Your Project Why is a feasibility study so important in project management? For one, the feasibility study or feasibility analysis, is the foundation upon which your project plan resides. That’s because the feasibility analysis determines the viability of your project.  What Is a Feasibility Study? A feasibility study is simply an assessment of the practicality of a proposed project plan or method. This is done by analyzing technical, economic, legal, operational and time feasibility factors. Just as the name implies, you’re asking, “Is this feasible?” For example, do you have or can you create the technology to do what you propose? Do you have the people, tools and the resources necessary?  When should project managers do a feasibility study? It should be done during that point in the project management life cycle after the business case has been completed. So, that’s the “what” and the “when” but how about the “why?” Meaning, why do you need a feasibility study? Well, it determines the factors that affect project feasibility, making it pretty important.  As you’re researching the feasibility study, project management software can help you keep track of all that information. Project Manager does more than just collect items as with most to- do lists. Assign a team member to get the feasibility analysis data you need. See their progress in real time. They can attach supporting documents. A feasibility study is a comprehensive evaluation of a proposed project that evaluates all factors critical to its success in order to assess its likelihood of success. A feasibility study evaluates a project's or system's practicality. As part of a feasibility study, the objective and rational analysis of a potential business or venture is conducted to determine its strengths and weaknesses, potential opportunities and threats, resources required to carry out, and ultimate success prospects. Two criteria should be considered when judging feasibility: the required cost and expected value. In a feasibility study, a proposed plan or project is evaluated for its practicality. As part of a feasibility study, a project or venture is evaluated for its viability in order to determine whether it will be successful. As the name implies, a feasibility analysis is used to determine the viability of an idea, such as ensuring a project is legally and technically feasible as well as economically justifiable. It tells us whether a project is worth the investment in some cases, a project may not be doable. There can be many reasons for this, including requiring too many resources, which not only prevents those resources from performing other tasks but also may cost more than an organization would earn back by taking on a project that isn’t profitable.  What Is Included in a Feasibility Study Report? The findings of your project feasibility study are compiled in a feasibility report that usually includes the following elements. Executive summary Description of product/service Technology considerations Product/service marketplace Marketing strategy Organization/staffing Schedule Financial projections Findings and recommendations Types of Feasibility Study Technical Feasibility: Consists in determining if your organization has the technical resources and expertise to meet the project requirements. Economic Feasibility: You’ll need to do an assessment of the economic factors of your project to determine its financial viability. You can use a cost-benefit analysis to compare its financial costs against its projected benefits.  Legal Feasibility: Your project must meet legal requirements. That includes laws and regulations that apply to all activities and deliverables in your project scope. Operational Feasibility: Operational feasibility refers to how well your project matches your organization’s capacity planning, resources, strategic goals and business objectives. - Scheduling( time ) Feasibility: This assessment is the most important for project success; after all, a project will fail if not completed on time. In scheduling feasibility, an organization estimates how much time the project will take to complete. When these areas have all been examined, the feasibility analysis helps identify any constraints the proposed project may face, including: Internal Project Constraints: Technical, Technology, Budget, Resource, etc. Internal Corporate Constraints: Financial, Marketing, Export, etc. External Constraints: Logistics, Environment, Laws, and Regulations, etc. Importance of Feasibility Study: The importance of a feasibility study is based on organizational desire to “get it right” before committing resources, time, or budget. A feasibility study might uncover new ideas that could completely change a project’s scope. It’s best to make these determinations in advance, rather than to jump in and to learn that the project won’t work. Conducting a feasibility study is always beneficial to the project as it gives you and other stakeholders a clear picture of the proposed project. Benefits of conducting a feasibility study: - Improves project teams’ focus - Identifies new opportunities - Provides valuable information for a “go/no-go” decision - Narrows the business alternatives - Identifies a valid reason to undertake the project - Enhances the success rate by evaluating multiple parameters - Aids decision-making on the project - Identifies reasons not to proceed  Lecture 7 Small and medium projects Benefits of a Feasibility Study: Preparing a project's feasibility study is an important step that may assist project managers in making informed decisions about whether or not to spend time and money on the endeavor. Feasibility studies may also help a company's management avoid taking on a tricky business endeavor by providing them with critical information. An additional advantage of doing a feasibility study is that it aids in the creation of new ventures by providing information on factors such as how a company will work, what difficulties it could face, who its competitors are, and how much and where it will get its funding from. These marketing methods are the goal of feasibility studies, which try to persuade financiers and banks whether putting money into a certain company venture makes sense. What Is Included in a Feasibility Study Report? When starting a business, one of the most important steps is to conduct a feasibility study This study will help to determine if your business idea is viable and has the potential to be successful. Several factors need to be considered when conducting a feasibility study, including the marketability of your product or service. the competition, the financial stability of your company, and more. A feasibility study should cover the amount of technology, resources required. The results of your feasibility studies study are summarized in a feasibility report: which typically comprises the following sections: Executive summary. Specifications of the item or service. Considerations for the future of technology. The marketplace for goods and services. Approach to marketing. Organization/staffing. Schedule. The financial forecasts. Recommendations based on research Tools for Conducting a Feasibility Study: While every project has its own goals and needs the following are best practices for conducting a feasibility study. Do a preliminary analysis. This includes getting feedback from relevant stakeholders on the new project. Also, look for other business scenarios. To ensure that the data is solid. determine and ask queries about it in the initial phase. Take a market survey: to identify market demand and opportunities for the new concept or business. Create an organizational, operational, or business plan. This includes identifying how much labor is required, what costs, and how long. Make a projected income statement that involves revenue, operating expenses, and profit. Create an opening day balance sheet. You will need to identify and address any vulnerabilities or obstacles. Take an initial decision to go ahead with the plan. Suggested Components Here are the some suggested components for conducting a feasibility study. Executive Summary: Write a narrative describing the project, product, or service. Technological considerations: Ask yourself what it will take. Are you able to afford it? How much will it cost? Current marketplace: Find out the market for your product, service, or plan in the local and global markets. Marketing strategy: Define in the detailed description. Required staff: What human resources are needed for this project? Timeline and schedule: Use important interim markers to indicate when the project will be completed. Project financials. Project financials are the different ways managers can account for money spent and earned on projects. One of the most important aspects of financial management is creating and tracking accurate project financials. What is the Purpose of a Feasibility Study? A feasibility study is an important first step in starting a new business. It is a detailed examination of whether or not a proposed business venture is likely to be successful. A feasibility study aims to provide information that will help business owners make informed decisions about their new venture. The feasibility study will answer important questions about the proposed business, including: What is the target market for this business? Who are the competitors? What are the costs associated with starting and running this business? What are the potential risks and rewards associated with this venture? How much revenue can this business generate? What are the estimated profits and losses for this business? What is the potential for growth in this industry? This feasibility study will outline why your business idea is worth pursuing and will also help you identify any potential risks or problems that could occur. When writing a feasibility study, there are a few key things to keep in mind: - Outline your target market and how you plan to reach them. - Discuss your product or service in detail and explain why it is unique and needed. - Outline your financial projections and explain how you plan to make a profit.