Understanding Small Medium Enterprises In Brunei

Micro, small and medium enterprises (MSMEs) are a vital component of Brunei's economy, driving innovation, economic development, and job creation. In recognition of their importance, the country has implemented various initiatives to support and develop MSMEs, including the establishment of Darussalam Enterprise (DARe), which offers training programs, business boot camps, and financing schemes to help them succeed and grow. With Brunei's recent economic challenges due to pressure on oil prices, the development of MSMEs is seen as a key part of the national vision, Wawasan Brunei 2035, which aims for a dynamic and sustainable economy with a high per capita GDP. This article will explore the definition of small and medium enterprises in Brunei, the role they play in the country's economy, and the efforts made by the government and organisations like DARe to support and promote their growth.

Brunei's national vision for MSMEs

The establishment of Darussalam Enterprise, or DARe, in 2016, is a key pillar of this vision. DARe is mandated to nurture the growth of MSMEs, enhancing their capacity to become resilient and dynamic contributors to economic growth. Through initiatives like the Industry Business Academy and various business boot camps, DARe equips business owners with essential skills and facilitates access to investors and markets.

DARe also addresses the financing needs of MSMEs through schemes like the Microcredit Financing Scheme and its collaboration with Bank Usahawan, providing access to capital. Physical spaces for expansion, such as incubation centers and industrial land, are also made available through DARe, enabling MSMEs to scale up their operations.

Furthermore, DARe facilitates market access through initiatives like the Made in Brunei program, which showcases Bruneian-made products in retail outlets and strategic locations nationwide. International market exposure is also fostered through expositions and trade fairs, with DARe developing programs to enhance MSMEs' production capacity and ability to export successfully.

The establishment of Business Support Centers by DARe demonstrates a commitment to addressing MSMEs' specific challenges. These centers, located across Brunei, serve as a frontline service, facilitating business-related processes and providing dedicated support to resolve issues. DARe also leverages digital media through platforms like Biz Brunei to promote entrepreneurship and keep MSMEs informed about opportunities and reforms.

Overall, Brunei's national vision for MSMEs is centered on creating an enabling environment for their growth and development, recognizing their potential to drive economic prosperity and innovation. By investing in skills enhancement, providing access to capital and markets, and offering dedicated support, Brunei aims to cultivate a vibrant MSME sector that contributes significantly to its economic aspirations as outlined in Wawasan Brunei 2035.

The role of Darussalam Enterprise (DARe)

Darussalam Enterprise, also known as DARe, was established in 2016 to promote the growth of micro, small, and medium enterprises (MSMEs) in Brunei. MSMEs are a vital component of the global economy, accounting for over 90% of all businesses and 80% of new jobs in emerging markets. Despite their widespread presence, they often face challenges in areas such as financing, business skills, and market access. This is where DARe steps in to provide support and empower MSMEs in Brunei.

DARe offers a range of training programs and boot camps to enhance the skills of business owners and employees. The Industry Business Academy, for instance, covers essential business topics such as financial management and marketing, benefiting over 3,400 participants so far. The Startup Bootcamp helps businesses with high growth potential, while the Micro Business Bootcamp focuses on nurturing young entrepreneurs and bringing their business ideas to life.

Recognising the importance of financing for MSMEs, DARe introduced the Microcredit Financing Scheme, offering funding of up to $15,000. DARe also collaborates with Bank Usahawan to provide access to additional financing of up to $750,000. These financial initiatives help MSMEs obtain the capital they need to launch and expand their ventures.

Furthermore, DARe facilitates MSMEs' expansion by providing physical spaces, such as incubation centres for startups and industrial land or ready-built factories for larger enterprises. DARe currently manages 29 industrial sites across Brunei, accommodating more than 300 businesses. To help MSMEs reach customers, DARe launched the Made in Brunei initiative, providing local businesses with access to retail outlets, product displays in premier locations, and international markets through expositions and trade fairs.

To address the specific challenges faced by MSMEs, DARe established three Business Support Centres, including a flagship branch in the capital. These centres serve as a one-stop platform for MSMEs to navigate business-related processes and receive dedicated support for their issues. With a holistic approach, DARe is committed to empowering MSMEs in Brunei, contributing to the nation's economic development and helping local businesses thrive in the global marketplace.

International MSME Day

On 27 June, the United Nations General Assembly celebrates International MSME Day to recognise the significance of MSMEs and their contribution to the economy. Micro, small and medium-sized enterprises are critical to the global economy, driving innovation, economic development and job creation. They represent over 90% of all businesses globally and are responsible for more than 80% of newly created jobs in emerging markets.

In Brunei, the development of MSMEs is an essential component of the national vision, Wawasan Brunei 2035, which aims for a dynamic and sustainable economy with a per capita GDP among the top ten in the world. To achieve this, Brunei has implemented a reform agenda to improve the ease of doing business and established a national body to support MSMEs. Darussalam Enterprise (DARe), set up in 2016, champions the development of MSMEs, offering training programmes, boot camps, funding opportunities, and business support centres.

The day included events at the UN headquarters in New York and Geneva, as well as a virtual event by the UNCTAD and the Empretec Global Network, bringing together various experts and leaders to explore strategies for MSMEs to thrive and discuss supportive business environments.

Business training programmes

In Brunei, Micro, Small and Medium Enterprises (MSMEs) are a vital component of the national vision, Wawasan Brunei 2035, which aims for a dynamic and sustainable economy with a high per capita GDP. To support this, the country has established Darussalam Enterprise, also known as DARe, which runs several business training programmes.

The Industry Business Academy (IBA) is a SME development and learning programme that covers essential business skills, including financial management and marketing. The programme is designed to strengthen the business knowledge of owners and employees, with the ultimate goal of increasing the sustainability of their businesses. Over 3,400 people have participated in the IBA.

DARe also runs two business boot camps: the Startup Bootcamp and the Micro Business Bootcamp. The former is a 100-day accelerator programme for businesses with high growth potential, which has helped companies raise investment and create new jobs. The latter is aimed at young entrepreneurs, providing them with the knowledge and skills to start and run their own businesses.

In addition to these programmes, DARe has introduced the Energy Incubation initiative in collaboration with the Ministry of Energy. This programme provides MSMEs with relevant training programmes, co-working spaces, mentorship, and information on upcoming tenders in the Oil & Gas industry.

Another initiative is the iCentre, a startup incubation programme and co-working space for entrepreneurs. DARe also provides MSMEs with physical spaces to expand and grow, including incubation spaces for startups and industrial land and ready-built factories for larger businesses.

Financing MSMEs

Micro, small, and medium enterprises (MSMEs) are a critical force in the global economy, driving innovation, economic development, and job creation. In Brunei, MSMEs are recognised as crucial contributors to economic diversification, job creation, and overall economic resilience.

The Bruneian government has implemented various initiatives and support systems to facilitate financing for MSMEs, recognising their importance in the country's economic landscape. Here are some key aspects of financing MSMEs in Brunei:

Darussalam Enterprise (DARe)

Darussalam Enterprise, commonly known as DARe, plays a pivotal role in supporting MSMEs in Brunei. DARe offers a range of services to empower MSMEs and enhance their growth and sustainability.

Training Programmes: DARe provides comprehensive training programmes to equip MSME owners and employees with essential business skills. The Industry Business Academy covers core areas such as financial management and marketing, benefiting over 3,400 participants.

Business Bootcamps: DARe organises two types of business bootcamps annually: the Startup Bootcamp and the Micro Business Bootcamp. The Startup Bootcamp is a 100-day accelerator programme for businesses with high growth potential, helping them secure investments and create employment opportunities. The Micro Business Bootcamp focuses on youth entrepreneurship, providing them with the knowledge and motivation to start their own businesses.

Microcredit Financing Scheme: DARe introduced this scheme to offer financing of up to $15,000 Brunei dollars to MSMEs, addressing their financial needs.

Collaboration with Bank Usahawan: DARe works closely with Bank Usahawan, enabling MSMEs to obtain financing of up to $750,000. The bank offers tailored financing products and integrated assistance, addressing the unique challenges faced by MSMEs, including cash flow management, equipment acquisition, and expansion projects.

Business Support Centres: DARe has established three Business Support Centres to address the specific issues and inquiries of MSMEs. These centres serve as a frontline service, facilitating business-related processes and providing dedicated support to resolve issues.

Brunei Darussalam Central Bank

The country's central bank has implemented several measures to help MSMEs obtain financial loans more easily. These include the collateral registry system and the credit score system. The bank has also introduced a fintech regulatory sandbox, allowing fintech companies to test their digital financial services and provide technology solutions to the financial challenges faced by MSMEs.

Other Initiatives

Brunei has also established a national body dedicated to supporting MSMEs and improving the ease of doing business in the country. Additionally, the country has risen in the World Bank's Ease of Doing Business report rankings, reflecting the success of its regulatory reforms.

The financing and support initiatives for MSMEs in Brunei aim to address their unique challenges, foster innovation, and contribute to the country's economic growth and diversification. These initiatives empower MSMEs to build robust business models and thrive in the local and global markets.

Frequently asked questions