However big and successful modern business giants might seem now – they all started small, with some of them even being started in a garage. Having turned their humble ideas into the multi-million money-making machines, founders of these companies have probably faced a lot of struggles along the way, especially in the beginning.

Normally, small firms do not have a lot of budget to play around with, which leads to limited possibilities. They get lucky if they get funding – either from a bank (which is extremely hard) or from a friend or a relative.

With bigger funding comes faster development, yet, things are pretty slow considering the scale of these small companies. The bigger competitors are sometimes taking away their clients due to lower pricing (thanks to the economies of scale) and trying to push small players out of the market.

Adding to the struggles of young entrepreneurs, not many suppliers are willing to work with them, again, due to the small budget and size of operations. This, in turn, leads to higher fees, resulting in more expensive goods and services. 

It seems like everything is against a growing firm when it is just starting its business. 

Giants also started in a garage

Yet, as mentioned in the very beginning, some of the companies that had ground-breaking ideas were able to overcome these issues. 

Take Gillette razors for example. Back in 1895, King Camp Gillette was working as a travelling salesman for one of the cork companies in the US. He noticed how bottle caps are usually thrown away after one usage – at that time, bottling companies had to purchase more caps. This gave him an idea of creating a one-use razor. 

Six years fast forward, King created a perfect razor and in 1901, he established the American Safety Razor Company, which was later renamed to Gillette Safety Razor Company. 

Another brilliant example of a small company that now valued at USD$1 trillion – Apple Inc. Steve Wozniak created the first Apple computer in 1976. He was then joined by Steve Jobs and Ronald Wayne. Together, they launched the Apple Computer Co. from Steve Jobs’ small garage in Cupertino, California. Sometime later, they received their first order for 50 computers to get USD$500 per computer – they delivered in 30 days.

Saturated markets or limited opportunities?

Undoubtedly, these are the cases of innovative ideas and good timing and today’s small firms lack that. But that does not mean that modern businesses’ ideas are not creative or innovative – it is just that the level of market saturation is as high as it has ever been. There are so many ideas being born every day with companies struggling to keep up with the competition.  

This factor also adds to the list of roadblocks that are met by growing businesses. Normally, a business goes through a “business lifecycle” as soon as the owner is making a decision to set up a firm.

If successful, a business usually goes through 4 key stages: launch, growth, shake-out, maturity. Then comes the decline. However, many of today’s firms do not even reach the growth stage due to the harsh market conditions. 

Specifically, these firms today are referred to as micro, small and medium-sized enterprises. The European Commission’s definition of micro, small and medium enterprises is tied to a number of employees and the annual turnover of the company. To be precise:

1. Micro-enterprise has less than 10 workers and an annual turnover or balance sheet below EUR 2 million;

2. Small enterprise features less than 50 employees and an annual turnover or balance sheet under EUR10 million;

3. Medium enterprise employs less than 250 people and reports an annual turnover below EUR50 million or a balance sheet below EUR43 million. 

Yet, there are varying definitions of MSMEs all over the world, which makes it hard for companies to handle certain legal and formal decisions.

Despite no clarity in terms of legal definition, this class of companies is the second largest employment providing sector. According to the latest ‘Development Report’ on MSMEs from the Kochi based Institute of Small Enterprises and Development:

“Micro, small and medium enterprises (MSMEs), the second-largest employment providing sector, need radical reforms to solve its pressing problems and to utilize its potential.”

Will governments save growing businesses?

A lot of private and public organizations understand this urgent need to resolve this pressing issue by creating an appropriate environment for these firms to develop. There have been a number of initiatives from governments that aimed at resolving this problem, just like the Reserve Bank of India has set up the incentives in collaboration with the Indian government. 

They put forward a number of ideas that would facilitate the growth of small firms, including doubling the GST exemption limit to 40 Lakh annual turnover (20 Lakh for the North-Eastern States), speeding up the loan acquisition procedure and some shipping solutions, among many others.

Indian authorities are not the only ones that are struggling for the bright future of the growing enterprises. Many other developing countries’ governments are working on initiatives that are said to improve market conditions for small firms. 

Yet, due to the fact that most of the governments are either resistant or slow to adopt new technologies, the ideas proposed by them are not tackling the problem on a global scale. Surely, they can help growing businesses get a loan and, perhaps, set up the legal definition boundaries, but there are just too many factors that are negatively affecting the development of small enterprises.

Modern problems call for modern solutions

Modern problems call for modern solutions and, considering the fact that we live in the era of decentralization, there are tons of untapped opportunities on the market. 

Users are able to carry out transactions on the blockchain in a fast and secure way. Besides, blockchain technology can be applied to virtually any industry and be helpful – the possibilities are endless.

It comes as no surprise, the solution to the growing business sector’s woes also lies in blockchain technology. According to the OECD:

‌“Enabling SMEs and entrepreneurs to seize the opportunities opened up by the blockchain revolution can foster access to markets and finance and boost competitiveness.”

Many blockchain startups have been aiming to help this important part of the economy through their unique ideas – some propose logistics applications of blockchain, others offer business support with identifying opportunities from blockchain innovations. 

Some of the promising solutions powered by blockchain included the creation of business-oriented data infrastructure. Since one of the biggest obstacles for growing enterprises is the lack of their “creditworthiness”, the blockchain-based data platform would enable them to enjoy a secure and fast exchange network. Platforms like this ultimately lead to a stronger profile of small enterprises on the market, thus allowing them to meet their business needs without any intermediaries.

Now, as blockchain-driven organizations are coming up with innovative solutions for the small business sector, governments start to pay attention. Moreover, global authorities are entering multiple collaborations with blockchain projects, as they realize the whole potential behind this nascent technology. This development is potentially the biggest chance for growing businesses to get help.

Final words

Transitioning from traditional solutions to decentralized ledger technologies to solve one of the biggest problems the current business world faces is not easy. Governments are backing their own ideas that have little to nothing to do with blockchain and only a handful of open-minded authorities are turning to decentralization as a part of the solution. 

Yet, the growing business crisis has been around for decades and none of the government-initiated programs have been able to fix the lingering issues of small enterprises on a global scale. Perhaps, it is the time for innovation and new technologies, which could provide and be the face of local businesses, to take their chance to change the future for growing companies.

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Seventeen billion, two hundred million dollars, according to Statista. That’s the amount raised through crowdfunding campaigns in the U.S. alone in 2017.

In Asia, the figure is not as high, but still a significant US$10.54 billion that year – second only to the U.S.  This year, there are around 432,000 projects on Kickstarter alone, toward which US$4 billion are already pledged.

Crowdfunding has been successful enough in raising money that a similar model has been explored by technology companies – especially ones that use Blockchain tech as the foundation for their business. In 2018, initial coin offerings or ICOs reached US$6.3 billion, according to Coindesk (different sources report different figures, depending on their data).

Concerns about the ICO model have prompted businesses to utilize other alternative models, as well, including initial exchange offering (IEO) or securities token offering (STO). Whatever the tokenization or crowdfunding model, the basic concept is the same: contributors send money — or buy tokens — in advance to support development of a product or service.

Unfortunately, not all those products become successful.

In total, at least US$500 billion of crowdfunded money has gone to failed projects – and that’s just on Kickstarter. Such a concern has actually led to crowdfunding fatigue – Kickstarter itself reports that of its 15.7 million users, only one-third have supported a second project.

Also Read: Want free Echelon tickets? Solve this riddle

Many of these are “cool” projects, literally and figuratively.

Kickstarter’s top project, the “Coolest Cooler”, raked in US$13 million in funding, but only a third of its products were delivered. The company requested additional backing in order to complete orders. The Ouya gaming console, meanwhile, raised US$8.5 million, but was delayed by more than three months. In fact, the company was able to ship to Amazon buyers earlier than delivering to Kickstarter backers.

Lack of trust and accountability

There are three main problems that need to be addressed with current crowdfunding solutions. These are lack of accountability, lack of transparency, and too much focus on centralized control.

The first two concerns stem mostly from the fact that crowdfunding projects rarely promise any guarantees. This means a high level of risk for crowdfunding backers who stand to lose their entire contribution or investment without getting their product or returns on time or, worse, not getting anything back at all.

For crowdfunding platforms, there is an incentive to maximize the number of projects they support, simply because the likes of Kickstarter, Indiegogo, etc., earn a commission from each contribution. This means that any project can raise funds regardless of quality or chance of success.

It is perhaps one reason why marketing is hailed as the most important aspect of crowdfunding. Even if you had a dubious product, it can still raise contributions as long as it is marketed very well.

This is not so good for backers, or for other startups, that may have better but less-marketed ideas.

The blockchain solution

Three basic concepts blockchain tech can fix are smart contracts, decentralization, and immutability.

Blockchain itself is defined as an immutable ledger running through a decentralised consensus mechanism. This means transactions can be made on the blockchain with full accountability. Smart contracts can enforce an output- or milestone-based payment, meaning crowdfunding backers can sleep safe knowing their money can be returned if no actual product milestones are met.

Here, platforms like Pledgecamp will play a big part in solving the biggest problems the crowdfunding industry is facing.

The company is founded by successful crowdfunders and counts Randi Zuckerberg, the former Facebook spokesperson and the Founder of Zuckerberg Media among its advisors.

In gist, here are some of the benefits and advantage that blockchain tech adds to crowdfunding:

Backer insurance. Smart contracts allow for traunched release of funds, based on accomplishment of milestones. This keeps funds in escrow while a founder team works on building and releasing the product.

Since blockchain is decentralized, this enables backers to make a vote on whether milestones have been met, meaning there is no centralized control over the release of funds. Such a system incentivizes creators to actually complete their project and not leave backers hanging in the air.

Better transparency through security deposits. Platforms like Kickstarter and Indiegogo offer a low barrier to entry, which means that low-quality projects or teams can easily get listed. Raising the bar with a security deposit can filter out spam and prospectively bad projects.

This can also improve transparency, as in the case of Pledgecamp, which asks for a security deposit, but refunds the money once creators upload KYC documents, code, proof of intellectual property, contracts, and the like.

Crowd-based governance through tokenization. A token-based approach to staking and voting enables users to establish democratized governance over the platform itself.

A marketplace for projects and workers. The community and tokenized approach to crowdfunding makes it accessible for creators to find good talent, particularly on the Pledgecamp Market Network.

The future of crowdfunding

Crowdfunding’s appeal comes mainly from its ability to bring together resources from the users who are interested in supporting or buying products. For many startups and creators, this means not having to court investors or borrowing money from banks just to fund their projects.

Also Read: *SCAPE’s HubQuarters Fellowship Demo Day wants to turn ideas into the next great startup

However, the existing model has been prone to abuse, or perhaps some creators have become too risky for their own good, which leads to an unhealthy environment wherein expectations are not met.

A blockchain approach, with focus on community and in rewarding actual accomplishments, can help revitalize this industry and even lead to building better products and services driven by the crowd.

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Photo by Michael Drexler on Unsplash

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To complete the TOP100 experience, e27 is working to prepare prizes that are just as wonderful as the previous ones—if not more

There are many good reasons for your startups to join the 2020 TOP100 APAC.

As part of the annual Echelon Asia Summit, the curated programme was designed to discover, showcase, and accelerate the next generation of up-and-coming startups.

Not only that TOP100 will give you the opportunity to showcase your startup’s products and services on a global platform, but it will also help on your fundraising journey by providing a platform to network with potential investors or partners.

Alumni of the programme have also raised new funding rounds and made exciting milestones after their participation in TOP100.

Leading up to Echelon Asia Summit, we are also set to conduct the qualifying round for TOP100 in six major Southeast Asian cities, bringing the global platform as close as possible to your base.

Also Read: Measure up to the region’s best and brightest at the 2020 TOP100 APAC

Still looking for a reason to join TOP100?

Just in case you are still not convinced, then let us remind you what previous event’s winner got to receive as prizes:

1. An S$50,000 in grants from Enterprise SG.
2. A fast-track to the SLINGSHOT, a startup competition launched by Enterprise Singapore in 2017.

For the year 2020, to complete the TOP100 experience, the e27 team is working to prepare prizes that are just as wonderful as the previous ones—if not more.

So keep a close watch to this space and watch out for an official announcement from us!

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In Singapore where we are a nation of gift-givers, online shopping has become second nature due to increased convenience and affordability. We are also big on celebrations and gifting is at the heart of it all — anniversaries, house warming, birthday celebrations, weddings, you name it and we have it. In fact, e-commerce activity is booming in our nation with the likes of year-end sales and this Christmas season is no doubt the best time for online shopping.

As with shopping in brick-and-mortar stores where we get the pleasure of retail therapy once dopamine is released into our brains, we have digital dopamine that works the same for online shopping.

During a sale, as you have guessed it — we are all the more given a harder kick. Commonly called “shopper’s high”, this rush encourages exploration by rewarding us when we stumble upon something salutary. Moreover, the e-commerce market is gradually adapting to the concept of instant gratification as well, establishing the ultimate dream for consumers as they are able to get what they need with a simple tap on their screens, right from their comfort zone.

However, while shaping up ahead this Christmas, it is crucial to shed light on the underrated topic about the negative effects of rabid consumerism on the environment — caused by unwanted things, throwaway packaging and the overall destruction of natural resources.

Also Read: Here’s how global businesses could drive sustainable development

In fact, a study has revealed that Asia consumes 50 per cent of global plastic packaging, which could quadruple in the next three decades. Furthermore, with new consumption patterns, including the continent’s rising appetite for e-commerce and food delivery — up 84 per cent year-on-year — we are witnessing the increasing demands of plastic packaging.

Known to few, the higher the consumption rate, the more waste will be produced. While there is a growing desire among Singapore millennials to discriminate against consumerism and verify the sustainability credentials of products they purchase, there is still room for e-commerce players to be more eco-friendly in their day-to-day practices.

How can we leverage technology for good, while enabling customers to scout for good deals and enjoy a borderless e-commerce experience?

1. Sustainable shipping

Consumers prioritize the ability to receive their products quickly, and at a reasonable price when online shopping. In order to encourage consumers to choose a more environmentally-friendly shipping method, businesses can simply change the order of their suggested shipping method by putting the most sustainable option on top.

At the same time when doing so, companies can educate customers on the positive impact of their sustainable contribution, just by making small changes. Before, most customers would choose the fastest shipping, but after making that small change, businesses can expect to see more customers opting for the sustainable option. Sometimes, all it takes is a consumer education to raise awareness around the increasing need to be environmentally-friendly.

2. Smaller packages

Having big boxes for a small product, coupled with multiple layers of plastic and bubble wrap sure sound familiar for businesses and consumers alike. Shipping out oversized packages certainly comes with a negative impact on the environment as well.

Buyandship’s small contribution to this is by offering free consolidation of packages, which in turn reduces the use of plastic. This also allows users and businesses alike to satisfy their environmental responsibilities by reducing carbon footprint. Additionally, businesses are also able to fit more packages into the vehicle, thereby being able to increase the number of transportation vehicles moving out for deliveries and ship more effectively in a single trip — and going the extra ‘green’ mile.

3. Right delivery partner

Nothing is more important than choosing the right delivery partner when it comes to deliveries, as it forms part of the process which ensures that all products arrive safely in the hands of consumers. At the same time, this also means that our delivery partners are one of the largest contributing factors to the pollution caused by e-commerce. By choosing a partner that has green shipping alternatives such as owning a fleet of electric vehicles, for example, businesses can reduce their online stores’ greenhouse emissions.

Also Read: Want to succeed wildly? Adjust your attitude

If your delivery partner does not own an electric fleet, fret not! There are others ways which businesses can reduce the overall transportation frequency of products. Similar to the above best practices, by informing consumers that should they choose standard delivery (4 to 7 business days) upon the checkout process — as opposed to express (1 to 3 days) or same-day delivery — they will help the environment and save X per cent on emissions, thus reducing carbon footprint. By doing so, consumers may opt for standard delivery and deliveries will ultimately be optimized by engaging fewer suppliers to cover multiple needs, thereby reducing the number of shipments.

Whether it is about cost or environmental savings, sustainability is here to stay. It is crucial for businesses to satisfy its environmental responsibilities and optimize the overall customer experience through collaboration with partners in the ecosystem to develop sustainable practices that delight customers and eliminate waste, while at the same time maintaining quality products and services — by ensuring products arrive undamaged and intact.

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In the quest for the “hyper-productive” employee, tech companies have gone out of their way to create an environment to make employees stay in the office for long hours. To do so tech offices often have a more relaxed atmosphere and are equipped with everything from bean-bag lounges to video-game rooms and even chef-made free meals have become standard across startups worldwide. 

However, behind the glossy image of the “cool office” hides in plain sight an obvious truth. These perks and “benefits” are not meant as bonuses from companies that care about their employees, but instead, are blatant attempts to keep workers in the office for longer than is healthy or productive. The lounge area and couches while very comfortable are still only there to ensure employees leave the office as late as possible, disrupting their work-life balance and ensuring they’ll become burnt out somewhere down the line.

As corporations essence is to profit as much as is possible, often employee’s long term mental and physical well being aren’t company priority. Overwork at major companies across the world is not a new thing, in fact, Japan even having a term for it (Karoshi). The Asian powerhouse reported 189 cases of Karoshi in 2015, though many analysts place their estimates higher than that. It’s not unusual in Japan to see a businessman sleeping on the sidewalk, or while standing on the subway.  

Also Read: Is technology killing workspace productivity? how to switch that around

Even in the US, workers in investment banking and finance industries tend to average around 80+ hours per week. Though this has changed after high-profile incidents, including a Merrill Lynch intern who died after working for 72 hours straight, the corporate world remains a difficult, cutthroat atmosphere where long hours are the norm. 

The tech world has made its reputation as a disruptor in everything from the products they sell to the way they deal with “corporate” culture. However, the industry’s relative infancy results in a scattershot approach obsessed with “disrupting”  as opposed to fixing, looking for the short cut often without considering the long-term. 

Projects that are rushing to be first-movers, acquire funding, and breakthrough oftentimes result in work schedules that are both intensive and variable. Moreover, the speed with which projects change their direction, change their scope or are simply abandoned means that employees are working in incredibly uncertain conditions.

The standard response by companies to the long list of demands they have for their workers is to focus on keeping workers “happy” despite asking them to work longer hours during the week and to even routinely sacrifice their personal time.

Companies entice workers to stay at the office longer with seemingly innocuous and friendly perks—bringing dogs to work, in-office laundry services, free dinners, “relaxation rooms”—but these benefits are simply the bait businesses use to encourage an unhealthy work-life balance. 

The tech industry is contending with serious employee health issues and is doing so quite poorly. A survey launched by workforce app Blind revealed that of the thousands of users that responded to the question “Are you currently suffering from job burnout?”, over 57 per cent said they were. The same survey also revealed that 39 per cent of tech workers reported feeling depressed. 

No amount of workplace perks and benefits can make up for the fact that employees are feeling overworked. Consequently, the industry is starting to receive blowback for policies workers feel are deceptive. Tech exhibits the highest employee turnover rate at over 13 per cent and is largely driven by a culture that glorifies overwork as corporate loyalty. 

Things may be improving

Even so, it seems the industry is slowly coming around to the problem. Uber, for instance, continues to rank among the best places to work for tech employees, and that has to do with the company’s paid-time-off (PTO) policies which include unlimited paid days off and flexible sick days. Unlimited vacations are becoming a common trend across the industry as well, with companies like Riot Games, VMware, and Mammoth offering this to their employees.

Others have started emphasizing skills-based growth instead of offering physical perks. This also shows that companies are becoming more in tune with what their employees need. Some companies are starting to focus on demonstrating their commitment to a more reasonable work-life balance, which is a major deciding factor for employees seeking new jobs. 

Also Read: Top 3 opportunities in tech across Southeast Asia, according to business leaders

Tech workers finally getting fed up with the promise of “puppy days”, pool tables, and free meals. Instead, they are starting to demand benefits that allow them to be healthy and mentally sound, as opposed to overworked and depressed.

It’s time for the tech industry to think of their long term success and understand that a happy and healthy employee who isn’t burnt out or depressed is a long term benefit which is smart to invest in both for the company’s benefit and the employees. One less ping pong table won’t make such a drastic difference anyway. 

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Digital financial services firm Visionet International’s (OVO) is entering a new era as Lippo Group founder Mochtar Riady has sold 70 per cent of its stake in OVO to other parties.

Stating the reason is its high level of spending, Riady further explained: “We’re not letting go of our stake. We’re merely selling two-thirds of it. We’re retaining the remaining 30 per cent of our stake,” Mochtar said, as quoted in The Jakarta Post, during the 2019 Indonesia Digital Conference, an event organised by the Indonesian Cyber Media Association (AMSI) in Jakarta.

Rumours have been circulated since earlier this year that Lippo Group would sell its stake in OVO as the company could no longer inject more funds into the fintech firm. Lippo Group was paying around US$50 million to OVO per month.

On a different occasion, OVO President Director Karaniya Dharmasaputra denied the rumors, saying that OVO was originally founded and developed by Lippo Group. Dharmasaputra was firm on how the future of OVO has been discussed with Lippo Group director John Riady.

In Fintech Report 2019, it is stated that 82.7 per cent of Indonesians were aware of digital wallet platforms, while 62.4 per cent were aware of digital investment and 56.7 per cent of pay-later services. The report confirms that digital payment is indeed the most popular type of financial technology (fintech) service for Indonesians.

Also Read: OVO expands to P2P lending service by acquiring Taralite

The study, which involved 1,500 respondents nationwide, also found that GoPay topped OVO in terms of digital payment use even with OVO’s awareness being higher than GoPay.

Furthermore, Riady also shared his two cents about the technological development in the sector as the survival key. “Artificial intelligence would be the logical continuation of digital technology in the near future. Digital technology is not new. It began its life in 1946, so it’s now 74 years old, so I believe it will soon be replaced by AI, where everything is done by robots,” added Riady.

A little over a month ago, Finance Asia in its report cited a source that claimed OVO to have reached unicorn status through its latest funding round at US$2.9 billion valuations.
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Whenever you think about startups and entrepreneurs working together at a place on something exciting, what’s the first place that comes into your mind? Silicon Valley, right?

Silicon Valley is the global hub for startups which every other emerging startup ecosphere is trying to replicate. However, over the past few years, Southeast Asian (SEA) countries have topped the growth charts in terms of startups. 

With a population of over 650 million people and 330 million monthly active users, SEA provides a great avenue for investors and startups. Moreover, the increasing pipeline of customers as well as the revenue act as a motivation for entrepreneurs to expand their businesses there. 

However, just because the region provided entrepreneurs with troves of opportunities, it doesn’t mean that it’s easy to start over there. Several challenges make the process troublesome.

Some giants companies have found it difficult to gain a foothold over there and so chose to either acquire, invest, collaborate with a local business or simply quit the market completely. 

To understand the present scenario for startups on the SEA market, several companies have put millions in research, analysis, and surveys and have gathered a considerable amount of data. In this article, we will be sharing a few most important insights from the gathered data. To start with, let’s check out the challenges in detail first. 

The challenges with investing in Southeast Asia’s startup ecosphere

SEA’s internet economy touched 50 billion USD in 2017 which outpaced the previous expectations by 35 per cent and it is expected that by 2025, it will reach 200 billion USD.

Yet to start a business in the SEA region, investors, as well as entrepreneurs, should be aware of the major hurdles that the region possesses.

Understanding the local market scenario and competitors

How will you beat the competitors who already exist in the market? Your start may have a great user base in the USA or Australia but that won’t help you to gain users in Singapore or Thailand, right?

Also Read: Eating your way in the Philippines: These 6 food startups can kickstart your foodies journey in the country

Researching the present competitors in the market and understanding the workings as well as the target audience helps you to determine if it’s worthwhile endeavour to start a startup in the market and the resources needed to establish your business to provide the desired output and gain sufficient market share. 

For this, companies need to research everything itself because such an in-depth analysis can’t be copied or outsourced. 

Diversity of cultures

Startups that are trying to set up their base in Southeast Asia might find it strenuous to replicate their business because of cultural and language barriers.

The SEA region constitutes around 11 countries and every country has its own language, culture, a form of government, economic system, population age, and technical expertise. In addition to it, as per a report by McKinsey Global Institute, the per capita income may also differ up to 50x in the neighbouring countries. 

Because of the diversity in cultures and languages, the market seems too fragmented and complicated for startups. There are no one-size-fits-all strategies that can be applied here. 

Timing

Is it the right time to expand your business in SEA?

Is your product ready to serve a need? Is there any market need for your product? It’s common in the startup ecosystem to have a thriving business in their region, yet you might struggle to thrive in a foreign market with the same product. 

You need to understand whether it is the right time to start your business in SEA or not. In this case, you’ll need to check the product available in the market and survey if there’s any market need for your product or not.

Financial situation

To determine the financial status of your business is crucial before stepping in the SEA region. Unless you invested a substantial amount of dollars for building a business reputation in the international market, your brand equity overseas is trivial.

There should be a proper strategy along with considerable resources to set up a new business, boost brand awareness and create a business process that can help to backup new business contracts internationally.

A useful idea here is to collaborate with local investors and entrepreneurs for understanding and even cutting off some direct market entry costs as well as associated risk.

A clear and measurable strategy

Before making the leap, do you have a roadmap for success? It’s crucial to have a measurable roadmap. However, it isn’t possible to predict market dynamics in its aggregate, learning from other company’s successes and failures can help in the planning.

This will help you to anticipate possible market risks and checking their mitigation measures can boost your decision-making process. 

Also Read: Indonesian P2P lending startup Amartha snags Series B funding led by LINE Ventures, to grow lending capacity across country

These were the challenges of starting up in the SEA region and now it’s time to reflect some findings of the SEA market.

Growth stage investments are on the horizon

One of the common indicators of the ecosystem maturity is the enhancement in the growth stage capital when funding is needed for scaling the business instead of validating the idea or understanding the market scenario.

As VC investment money is shifting from seed funding to the later rounds, this landscape is showing that organizations are thriving. 

The region has witnessed some massive deals in the past few months including Grab’s USD$2B series G and Tokopedia’s USD$1.1B Series F and now is home to 8 tech unicorns. 

Singapore is the right place to start a business

Singapore has been listed as the most favoured place for starting a startup followed by Kuala Lumpur and Jakarta. The main reason behind this is the strong public infrastructure and the quality of life there.

However, according to the survey, access to capital and the ease of starting and operating a business in Singapore is the reason why entrepreneurs prefer the place. Moreover, Singapore owns several VCs and a supportive government that is ready to invest significantly in small to medium-sized businesses. 

Gender diversity

As an important topic that has been discussed in Silicon Valley as well, gender diversity is a critical issue with a scope of improvement. In SEA, a report found that 40% of the respondents were working in all-male employees company. 

Additionally, when asked if gender should be considered while choosing an investment opportunity for a startup, the result was highly negative.

Founders had a strong opinion on this and the results were split by gender lines: While 35 per cent of female founders supported to consider the gender, just 2 per cent of male founders supported the same. 

Conclusion

As the number of startups, investors and entrepreneurs are rapidly increasing in the SEA region, the place has started to have the startup fever.

As the startup ecosphere continues to mature, the future too can be expected to have a bright view and there are also chances that SEA may outshine the other startup ecosystems in the world very soon. 

So if you’re planning to startup in SEA or expand your business over there, this time is the best one because of the exploding opportunities and available rooms for new ventures.

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Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

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Image Credit:  Vitaly Sacred

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Chatbots are all the craze. Just like blockchain, it’s something every business simply needs. Or do they? As for most of the chatbots I’ve seen, they do more harm than good. They drive me up the wall. It’s like dancing in a nightclub: Unless you really know what you’re doing, you’re going to make a fool of yourself.

Here are the 3 things to consider if you want customers to be dissatisfied with your effort on user experience:

1. Be emotionless

A chatbot is a bot after all, so who cares about personality or empathy? Just keep those automated messages coming. And definitely, don’t be funny. Singapore’s most successful chatbot (BusUncle) may be known for its jokes, but what do they know?

They are way too popular anyway. People probably don’t like your company to begin with, so why suck up to your audience with well-meant humour? If your users need a friend, they can talk to Siri or Alexa.

2. Keep it random

Why should customers know the reason for you to have a bot? Isn’t that obvious – you did it because it’s cool to have one (and because your competitor does.) So, who really wants to know its purpose or how it can help?

Just like having pepper the robot at your event booth awards you Centurion for your conference booth game, sandwiching bots between customers and your company to serve no particular purpose proves you care about what matters (being random) over the boring stuff (serving customer needs or solving their problems)

3. Make it nice and complicated

Simplicity and intuitive UX is boring. Make it really hard for your customers to figure out what your bot can do. Ideally, pretend like it can handle anything. Then, whatever your users say, make sure you reply with the same template message.

Next, it’s always advisable to ask people whether they have time for a short survey, as you value their opinion. By this time, you will have successfully wasted a few minutes of your customers’ time and sent them scrambling to find the hotline. Which is great, because we all love an overloaded contact centre.

By now, you’re hopefully beginning to understand just how important it is to have bots working for you. If you are also interested in achieving business outcomes as opposed to driving up your users’ stress levels, you may find it pays off to learn from the best bots in business.

In episode 2 of the Present To Future podcast, I co-host, BusUncle founder and CEO of BotDistrikt Abhilash Murthy joins us to decode the success of the most popular chatbot used (and proudly made) in Singapore. Most of all, we speak with him about his experience in helping clients build amazing conversational experiences that are fun to use and get the job done.

Watch the video here :

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For example, AI-based optical character recognition is transforming the way in which businesses log and store expense information. Blockchain technology delivers interoperability between traditionally siloed tax data structures, streamlining compliance and reporting.

The most profound way in which technology is changing the tax ecosystem, however, is the rise of cloud accounting.  

What is cloud accounting?

Cloud accounting allows businesses to eliminate the need for expensive local financial data storage, which presents security risks and take advantage of powerful taxation software and services based on remote servers.

Cloud accounting services include payroll, accounting, invoicing, accessibility, and third-party integration features, and can significantly reduce the overheads associated with executing an effective tax strategy. Businesses that use cloud accounting services benefit from a cost reduction in hardware maintenance, and an improved user interface.

Enterprise and the cloud

The use of cloud accounting has dramatically increased over the last decade. Data published by Forbes demonstrates that 80 percent of major enterprise organizations now operate critical financial software on cloud-based platforms that significantly improve overall business efficiency. 

Also Read: How I led a startup within a MNC

Getting cloud-based tax and accounting software set up at your business is relatively simple, but it’s best to enlist the help of accountancy services to ensure you’re collecting data and reporting in a compliant manner, which automates tasks that would be time-consuming tasks. 

Cryptocurrency payments

The third-party integration offered by cloud accounting platforms are extremely flexible — many online merchants, for example, accept digital currencies such as Bitcoin as a payment method. Traditional taxation software can struggle to track cryptocurrency payments, whereas third-party applications are able to provide full reporting functionality designed specifically for digital assets.

Another modern tax tech is able to assist with the complex nature of cryptocurrency tax reporting. Major cryptocurrency exchanges can work to keep customer data extremely secure and private, which can make it difficult to track trades for capital gains, income tax reporting and atomic swaps. 

Financial sensitive data

Data breaches are extremely costly for businesses of all sizes. Both large and small scale enterprises are often the target of hackers that attempt to steal sensitive financial data. A single breach can incur a heavy cost.

Also Read: What I’ve learned from building lean in Asia

Data published by IBM reveals that the average data breach costs businesses almost $4 million, with each individual breached record valued at over $150. Cloud-based tax solutions and accounting software help to keep your business data safe with enterprise-scale security, eliminating the threat of data breaches. 

Key takeaway

Many businesses operate under tight budget constraints that doesn’t leave much room for professional full-time accounting staff. Cloud-based tax tech reduces the total amount of time businesses must direct toward financial strategy and tax reporting, freeing up capital that can be reinvested into the business itself. 

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CarDekho Group, which owns and operates a string of auto portals in India, has acquired car classifieds site Carmudi Philippines.

It is the second Southeast Asian country where CarDekho has started operations after its launch of Indonesia operations under OTO.com in 2016

The acquisition of Carmudi is aligned with CarDekho’s business strategy to expand and fortify its footprint across the region. In the Philippines, CarDekho will aggressively focus on building up and digitising the ecosystem and offer solutions to both new and used car buyers.

Also Read: ‘We’re burning money’, says Lippo Group’s Mochtar Riady; to sell 70% stake in e-wallet OVO

“The Philippines’s underlying macro fundamentals make it an extremely promising market. The market demand for new private vehicles in the Philippines has grown at a CAGR of 14 per cent during 2014-2018 with new car sales crossing 380,000 units in 2018. We see this growth as a big opportunity to digitise the Philippines auto ecosystem and engage with consumers throughout their online car buying journey. Our strong ecosystem play has made us a leader in India and Indonesia. And now we are expecting the same for the Philippines,” Umang Kumar, Co-founder and President, CarDekho, said.

“CarDekho’s backing will help us in further strengthening our position in this region. This means added enhancements in technology, processes, and platform resulting in great user experience. Carmudi is already known for quality listings, powerful search, and one-stop convenience but the collaboration with CarDekho will enable us to digitalise and simplify the entire auto ecosystem,” said Cholo Syquia, Country Head, Carmudi Philippines.

Founded in 2008 and headquartered in Jaipur, CarDekho currently operates auto sites such as CarDekho.com, Gaadi.com, ZigWheels.com, BikeDekho.com and PowerDrift.com in India. The group recently launched an insurance portal called InsuranceDekho.com offering services in motor and health insurance, and Gaadi.com is a one-stop destination for selling pre-owned cars.

The group also runs specialised portals like TyreDekho.com and TrucksDekho.com.

Also Read: 10 mistakes that new entrepreneurs tend to make and should avoid in 2020

CarDekho also works actively with over 4,000 new auto dealerships and 3,000 used car dealers across India. Also, it works in collaboration with more than ten financial institutions and 18 insurance companies across the country to facilitate used car financing and insurance for both buyers and sellers.

CarDekho has raised funding from marquee investors which include Sequoia India, Hillhouse Capital, CapitalG(formerly known as Google Capital), Tybourne Capital, HDFC Bank, Axis Bank, Times Internet, Ratan Tata, and Trifecta.

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