Home Blog Page 2

Embracing Digital Transformation: 5 Fundamental Steps for SMEs

By
Diriya Sri Lanka
-
0

In an era dominated by rapid technological advancements, small and medium-sized enterprises (SMEs) must adapt to the digitalization to thrive in the competitive business world.

Here are five basic digitization steps that SMEs should consider embracing:

Operational Systems Digitization:

First and most basic step is to digitize your operations as much as you can.  Billing and receipts, HR and payroll, supply chain and stocks, sales and distribution, accounting and finance, spreadsheets, audits, etc are the most essential of a company’s operational requirement that must be digitized. This will eliminate a massive cost off manpower and should be looked at as a necessary investment.

Cloud Computing Adoption:

One of the foundational steps for SMEs in digitization is the adoption of cloud computing. Cloud services offer a cost-effective and scalable solution for storage, computing power, and software applications. SMEs can leverage cloud platforms to streamline operations, enhance collaboration, and improve accessibility to data. By migrating to the cloud, businesses can reduce infrastructure costs, ensure data security, and enable remote work, thus fostering flexibility and agility.

Digital Marketing Strategies:

In the digital age, establishing a robust online presence is crucial for SMEs to connect with their target audience. Digital marketing encompasses a range of strategies, including social media marketing, search engine optimization (SEO), email campaigns, and content marketing. These tools not only help SMEs reach a wider audience but also provide valuable insights into consumer behavior. By understanding their customers better, SMEs can tailor their products and services to meet evolving needs, driving customer loyalty and brand growth.

Data Analytics Implementation:

Data is a goldmine of insights that SMEs can tap into for informed decision-making. Implementing data analytics tools enables businesses to extract meaningful patterns and trends from large datasets. SMEs can use these insights to optimize operations, identify market trends, and enhance customer experiences. Whether it’s understanding sales patterns, predicting demand, or personalizing marketing efforts, data analytics empowers SMEs to make data-driven decisions, fostering efficiency and competitiveness.

Cyber Security Measures:

With the increased reliance on digital technologies comes the heightened risk of cyber threats. SMEs must prioritize cyber security to safeguard their sensitive information and maintain the trust of their customers. Implementing robust cyber security measures, such as firewalls, encryption, and regular security audits, is imperative. Training employees on cyber security best practices is equally essential to create a culture of awareness and resilience against potential cyber threats.

As SMEs navigate the digital landscape, these steps can pave the way for sustainable growth and success.

Content provided by: Content Commune – email: the.conent.commune@gmail.com

Business Ethics and Social Responsibilities

By
Diriya Sri Lanka
-
0

The current business environment is very turbulent due to the rapid and unpredictable changes, including technological advancements, globalization, complex customer preferences, and competitor actions. As a result, especially SMEs find it very challenging to survive and succeed in the face of competition.

On the other hand, conducting the business in an appropriate manner has become a significant challenge especially with every single action of theirs being judged as wrong or right. However, to sustain a business and develop a loyal customer base, it is important for an entity to practice ethics. In today’s business environment where relationship marketing is the key, business ethics and social responsibility are gaining more attention than ever before.

Business Ethics

Ethics can be defined as a set of principles, values, and beliefs that determine what is morally right or wrong, or what is just or unjust. These components of ethics are used to define acceptable and unacceptable behaviors and decisions in a given situation. Essentially, ethics are a set of guidelines that help individuals or organizations determine the right course of action in a particular context. Business ethics refer to the moral principles and standards that a company adheres to as guidelines for conducting its operations. The acceptability of a business organization’s behavior is determined by its stakeholders, which include employees, customers, suppliers, distributors, competitors, the government, the community, and other interested parties. An organization that has identified its business ethics is likely to make ethical decisions in all of its actions, both internally and externally.

Social Responsibilities

More recently, there has been a growing focus on the ethical considerations of companies, which has given rise to burning issues affecting the world in various ways. The discussion around social responsibilities became more widespread during the industrial revolution in the 1960s and 1970s when the negative consequences of increased environmental pollution generated criticism. As a result, the concept of Corporate Social Responsibility (CSR) emerged in the 1980s. Initially, CSR was viewed as a mechanism focused solely on the philosophy of economic growth that generates higher value for future generations that endure the gains of present activities. It  proposes that all the stakeholders including customers, suppliers, employees, government, and society are equally important for the existence of a company, as much as its owners, viewing the entire corporate business environment as a single ecosystem that interconnects every party together.

Accordingly, social responsibility can be defined as the obligations that a business organization owes to maximize the positive impacts of every business activity on society while minimizing the negative impacts as well.

How to become an Ethical and Social Responsible SME?

  • Owners/ Shareholders

The primary responsibility of a business organization is to satisfy the expectations of its shareholders/owners, whose foremost concern is profitability and return on their investment. This requires maintaining accurate accounting records and documentation, providing them with relevant information about the business, and safeguarding their rights.

  • Employees

Businesses have a responsibility towards their employees as they are essential to the company. This includes creating a safe and healthy work environment, providing fair and timely compensation, complying with labor laws and regulations, offering equal opportunities for professional development, prohibiting the use of child labor, and promoting employee welfare activities etc. By fulfilling these obligations, the company can build a loyal and committed workforce, which can contribute positively to the company’s overall success.

  • Customers

Business organizations must meet the ethical expectations of customers to ensure their survival and sustainability. This involves delivering high-quality and safe products at affordable prices, respecting customer rights, providing satisfactory after-sale services, giving accurate information about products, and addressing customer complaints promptly. By doing so, companies can maximize customer value and build long-term relationships with their customers.

  • Environment

Fulfilling environmental responsibility has become a critical aspect for business organizations. They are striving to minimize the negative impacts of their business activities on the environment, such as deforestation, greenhouse gas emissions, pollution, and carbon footprint. At the same time, businesses are taking initiatives to protect the environment by engaging in reforestation, renewable energy consumption, protecting animal rights, introducing green and eco-friendly products, recycling and reusing raw materials, and participating in different environmental protection programs.

  • Community

Business organizations have a social responsibility to the communities in which they operate. This involves contributing to the development of the region, creating employment opportunities, promoting and supporting cultural diversity, and engaging with programs to improve the health and education levels of the community. By fulfilling these responsibilities, businesses can build a positive reputation in the community and enhance their overall social value.

Significance of Business Ethics and Social Responsibilities for SMEs

Many business organizations today make a conscious effort to adhere to ethical considerations and be socially responsible. This is because they realize that business ethics and Corporate Social Responsibility (CSR) initiatives can be a source of competitive advantage. Customers today are particularly concerned about ethical aspects, including environmental impact, and being ethical can attract more loyal customers to the company. Business ethics can be seen as an intangible asset that a company possesses in the modern business world. It enhances the overall goodwill of the organization, not just locally but also globally. Employees are encouraged to provide their maximum contribution to the organization, and managers experience less stress due to the ethical decision-making process, ensuring smooth functioning of the organization. By being ethical towards every stakeholder of the company, organizations can reduce unnecessary costs such as legal fees, compensations, and fines. Building long-term, sustained relationships with stakeholders can also benefit the company. Ultimately, ethical considerations can increase the overall performance of the organization, particularly in financial terms. Investing in ethics and social responsibilities does not result in losses, but creates profits.

This content was facilitated by CeFEnI/COSME and prepared by the University of Sri Jayawardenapura, Kotte

Embracing the Entrepreneurial Mindset: Your Path to Success

By
Diriya Sri Lanka
-
0

Are you tired of the monotonous nine-to-five routine? Do you dream of creating something meaningful, pursuing your passion, and having the freedom to make decisions on your terms? If so, you might be ready to embark on an entrepreneurial journey. But before you take the plunge, it’s essential to cultivate the right mindset – the entrepreneurial mindset.

What is the Entrepreneurial Mindset?

The entrepreneurial mindset is not just a buzzword; it’s a powerful way of thinking and approaching life and business. It’s a mindset that values innovation, resilience, and adaptability. Entrepreneurs view challenges as opportunities, failures as learning experiences, and success as a result of hard work and dedication. This mindset is not limited to business owners; it can benefit anyone looking to make a positive impact on their lives and those around them.

Embrace Your Inner Risk-Taker

One of the core attributes of the entrepreneurial mindset is the willingness to take risks. Entrepreneurs understand that risks are an inherent part of the journey, and without taking them, growth and success are elusive. Of course, risks need to be calculated and informed, but being open to taking them can lead to groundbreaking achievements.

Failure is Not The End; It’s a Stepping Stone

Fear of failure often holds people back from pursuing their dreams. However, entrepreneurs see failure differently. Instead of viewing it as a dead-end, they see it as a stepping stone towards success. Each failure provides valuable lessons and insights, bringing them one step closer to their goals. Embrace failure, learn from it, and keep moving forward with renewed vigor.

The Power of Positive Thinking

Positive thinking is a driving force behind the entrepreneurial mindset. When you believe in yourself and your abilities, you can conquer challenges with a can-do attitude. Surround yourself with positivity, affirm your goals, and visualize your success. The power of positive thinking can create a ripple effect, leading to remarkable achievements.

Flexibility and Adaptability

In the fast-paced world of entrepreneurship, being flexible and adaptable is crucial. Circumstances change, markets shift, and unexpected challenges arise. Entrepreneurs embrace change and are quick to adapt their strategies. Just like a bamboo tree that bends but never breaks during a storm, having a flexible mindset helps entrepreneurs navigate turbulent waters and come out stronger on the other side.

The Perseverance of a Marathon Runner

Building a successful business takes time and effort. It’s not a sprint but a marathon. Entrepreneurs understand this and possess the perseverance and determination of a marathon runner. They keep pushing forward, even when faced with obstacles that seem insurmountable. With each step, they get closer to the finish line – their ultimate goals.

Embrace Curiosity, Embrace Growth

Curiosity is the fuel that drives innovation and growth. Entrepreneurs have an insatiable curiosity; they ask questions, seek new knowledge, and continuously learn from their experiences and from others. This thirst for knowledge fuels their creativity and helps them stay ahead in a competitive landscape.

Building a Support Network

No entrepreneur succeeds alone. Building a support network is essential for sharing ideas, seeking guidance, and finding inspiration during challenging times. Surround yourself with like-minded individuals, mentors, and advisors who can offer valuable insights and encouragement on your entrepreneurial journey.

Embracing Change: Embrace Opportunities

Change is the only constant in life, and entrepreneurs are not afraid to embrace it. They see change as an opportunity for growth and improvement. Instead of resisting change, embrace it with open arms and see where it leads you. It might just be the catalyst for your next big breakthrough.

Passion, the Driving Force

Passion is the driving force behind every successful entrepreneur. It’s the love for what they do that keeps them going even when the going gets tough. Find your passion and turn it into your purpose. When you’re genuinely passionate about your work, it won’t feel like work at all.

From Idea to Action

Having great ideas is one thing, but taking action on them is what sets entrepreneurs apart. They are not afraid to turn their ideas into reality. Remember, even the smallest step forward is progress. Take that leap of faith and watch as your dreams begin to materialize.

Overcoming the Fear of the Unknown

Stepping into the realm of entrepreneurship can be intimidating, as it involves navigating the unknown. However, successful entrepreneurs are not held back by fear. Instead, they embrace uncertainty and see it as an opportunity for growth and learning. Face the fear of the unknown head-on, and you’ll be amazed at what you can achieve.

The Art of Adaptation

In the ever-changing landscape of business, the ability to adapt is essential. Darwin’s theory of survival of the fittest holds true in the entrepreneurial world as well. Those who can adapt to new circumstances and challenges are the ones who thrive. Be open to change and continuously refine your strategies to stay ahead of the curve.

Embracing Challenges with Confidence

Entrepreneurs are not immune to challenges. They face them head-on with confidence and a positive attitude. Challenges are not seen as roadblocks but as opportunities for growth and improvement. Embrace challenges as a chance to test your limits and unleash your true potential.

The Power of Resilience

Resilience is the backbone of the entrepreneurial mindset. It’s the ability to bounce back from setbacks and keep moving forward. Life is full of ups and downs, but with resilience, you can weather any storm that comes your way and emerge stronger on the other side.

Celebrate Your Victories

In the pursuit of success, it’s easy to overlook the achievements along the way. Celebrate even the smallest victories as they are milestones in your journey. Acknowledging your progress boosts morale and motivates you to keep pushing forward.

Conclusion

Embracing the entrepreneurial mindset is a transformative journey that can lead to extraordinary achievements. It’s not just about starting a business; it’s about adopting a way of thinking that opens doors to limitless possibilities. Be fearless in the face of challenges, embrace change, and let your passion be the driving force. Remember, success is not an overnight phenomenon – it’s the result of consistent effort, unwavering determination, and the right mindset. So, are you ready to set sail on the adventure of a lifetime? Embrace the entrepreneurial mindset, and the world will become your oyster.

This content was facilitated by CeFEnI/COSME and prepared by the University of Sri Jayawardenapura, Kotte

5 Ways To Raise Capital When Starting A Business

By
Diriya Sri Lanka
-
0

Learn about different ways of raising capital for your startup and advantages/disadvantages of each method.

Hospitality 2 :Food & Beverage Management II

By
Diriya Sri Lanka
-
0

In Diriya Biz Inside we feature a series of videos produced in collaboration with Jetwing Hotels to provide small-scale hotels with essential knowledge of hoteliering. In this segment, Farrel Blom Manager Unawatuna Jetwing J, gave his insights on Food and Beverage Management for small hotels and restuarants. Spread the Knowledge – like and share www.diriya.lk videos to help build a beautiful Sri Lanka

Hospitality 1 : Food & Beverage Management 1

By
Diriya Sri Lanka
-
0

In Diriya Biz Inside we feature a series of videos produced in collaboration with Jetwing Hotels to provide small-scale hotels with essential knowledge of hoteliering. In this segment, Farrel Blom Manager Unawatuna Jetwing J, gave his insights on Food and Beverage Management for small hotels and restuarants. Spread the Knowledge – like and share www.diriya.lk videos to help build a beautiful Sri Lanka

How Financial & Non-Financial Auditing affects your business?

By
Diriya Sri Lanka
-
0

As the global business landscape continues to evolve at a rapid pace, companies are increasingly being held accountable for their financial and non-financial performance. One of the key tools in this regard is auditing. Auditing is a process that involves the examination and evaluation of an organization’s financial and non-financial records and systems. Auditing aims to provide stakeholders with an accurate and reliable assessment of the organization’s financial and non-financial performance, which can help them make informed decisions about the organization’s future.

Financial auditing is a well-established practice that involves the examination of an organization’s financial records to ensure that they are accurate, complete, and in compliance with accounting standards and regulations. Financial auditors typically focus on financial statements such as balance sheets, income statements, and cash flow statements. They examine the organization’s financial records to ensure that they accurately reflect its financial position, its financial performance, and its cash flow.

Non-financial auditing, on the other hand, is a relatively new practice that focuses on the examination of an organization’s non-financial records and systems. Non-financial auditors typically examine a wide range of non-financial data, including environmental, social, and governance (ESG) data, customer satisfaction data, and employee satisfaction data. Non-financial auditing aims  to provide stakeholders with an accurate and reliable assessment of the organization’s non-financial performance, which can help them make informed decisions about the organization’s future.

The importance of financial and non-financial auditing for businesses cannot be overstated. Here are some of the key reasons why businesses need to invest in financial and non-financial auditing:

Provides stakeholders with accurate and reliable information 

Financial and non-financial auditing provides stakeholders with accurate and reliable information about an organization’s financial and non-financial performance. This information is critical for stakeholders to make informed decisions about the organization’s future, such as whether to invest in the organization or whether to continue doing business with it.

Enhances the organization’s reputation

A well-conducted financial and non-financial audit can enhance an organization’s reputation by demonstrating its commitment to transparency and accountability. This can help the organization attract new customers, investors, and partners, and retain existing ones.

Increased Efficiency and Effectiveness

Non-financial auditing can help businesses identify inefficiencies and areas for improvement in their operations. By improving efficiency, businesses can reduce costs, increase productivity, and improve customer satisfaction. This can help businesses gain a competitive advantage in their market.

Identifies areas for improvement

Financial and non-financial auditing can help organizations identify areas for improvement in their financial and non-financial performance. This can help organizations improve their operations, reduce costs, and enhance their overall performance.

Helps organizations comply with regulations

Financial auditing is a legal requirement for most organizations, and non-financial auditing is becoming increasingly important for organizations that want to demonstrate their commitment to ESG issues. By conducting financial and non-financial audits, organizations can ensure that they are complying with relevant regulations and standards.

Helps organizations manage risk: Financial and non-financial auditing can help organizations identify and manage risks related to their financial and non-financial performance. This can help organizations avoid potential legal and reputational risks, and protect their stakeholders’ interests.

Improved Decision-Making

Both financial and non-financial auditing provide valuable information that can help businesses make informed decisions. Financial audits provide reliable financial information that can help businesses assess their financial health and make decisions about investments, capital expenditures, and operations. Non-financial audits provide insights into operational processes and risks, which can help businesses make decisions about how to improve efficiency and reduce costs.

In conclusion, financial and non-financial auditing are essential tools for businesses that want to demonstrate their commitment to transparency and accountability. These practices provide stakeholders with accurate and reliable information about an organization’s financial and non-financial performance, which can help them make informed decisions about the organization’s future. Furthermore, financial and non-financial auditing can help organizations identify areas for improvement, comply with regulations, and manage risk. For these reasons, businesses must invest in financial and non-financial auditing to ensure their long-term success.

This content was facilitated by CeFEnI/COSME and prepared by the University of Sri Jayawardenapura, Kotte

Business Law – Sole Proprietorship, Partnership & Companies

By
Diriya Sri Lanka
-
0

On this Diriya Biz video segment, Sanjaya Ranathunga – (Lawyer – Supreme Court) explains the business law pertaining to Sole proprietorships, Partnerships & Companies.

Navigating Turbulence: 7 Tips to Spot a Downturn in Your Business Early

By
Diriya Sri Lanka
-
0

For businesses, early detection of a downturn is crucial to weathering challenges and implementing proactive strategies. Recognizing warning signs enables companies to pivot, cut losses, and position themselves for a swifter recovery. Here are seven tips to spot a downturn in your business early:

Monitor Financial Metrics:

Keep a vigilant eye on key financial indicators such as cash flow, profit margins, and revenue trends. A sudden dip or a prolonged decline in these metrics can signal underlying issues. Regularly review financial statements and conduct in-depth analyses to identify any anomalies or warning signs.

Customer Feedback and Satisfaction:

Pay close attention to customer feedback and satisfaction levels. A sudden increase in complaints, declining customer loyalty, or a drop in customer satisfaction scores may indicate a shift in market perception. Proactively address customer concerns and seek constructive feedback to gauge overall sentiment.

Market Trends and Competition Analysis:

Stay abreast of industry trends and monitor the activities of competitors. A decline in market demand or increased competition could impact your business. Conduct regular market analyses to identify shifts in consumer behaviour and emerging competitive threats, allowing you to adjust your strategy accordingly.

Employee Morale and Productivity:

Your workforce often serves as a barometer for the health of your business. A noticeable decline in employee morale, increased employee turnover, or a drop in productivity may indicate internal challenges. Regularly communicate with employees, conduct surveys, and address concerns promptly to maintain a positive and productive work environment.

Inventory and Supply Chain Management:

Effective inventory and supply chain management are integral to a well-functioning business. Unexpected fluctuations in inventory levels or disruptions in the supply chain can be early indicators of a downturn. Stay in close communication with suppliers and monitor inventory turnover to identify potential issues before they escalate.

Technological and Regulatory Changes:

Keep a watchful eye on technological advancements and regulatory changes within your industry. Failure to adapt to new technologies or comply with evolving regulations can leave your business vulnerable. Stay informed and be proactive in adjusting your business processes to align with industry standards.

Scenario Planning and Stress Testing:

Engage in scenario planning and stress testing to assess how your business would fare under various adverse conditions. By modeling different scenarios, you can identify potential vulnerabilities and develop contingency plans. This proactive approach enables you to respond swiftly when faced with unexpected challenges.

Proactive management and a keen awareness of your business environment are key to spotting and addressing challenges before they escalate into crises.

Content provided by – Content Commune – the.content.commune@gmail.com

Intellectual Property Rights

By
Diriya Sri Lanka
-
0

On this Diriya Biz video segment, Shehani Wijeratna, (Attorney-at-law and Lecturer at the Legal Studies Unit, Faculty of Management and Commerce, University of Sri Jayawaradenapura) speaks on what interlectual property entails and the need to protect it.

This content was facilitated by CeFEnI/COSME and prepared by the University of Sri Jayawardenapura, Kotte.

123...24Page 2 of 24

Disclaimer

Diriya.lk is a sustainability and social innovation initiative of Dialog Axiata PLC. The content available herein is aimed solely for the purposes of educating, guiding and assisting Micro, Small and Medium Enterprises (MSMEs) in navigating the challenges of the fast paced business world. As such, Dialog Axiata PLC, its staff, its officers or Directors shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages or damages for any loss of profits, revenue, business, savings or data, incurred due to the use of the content available on Diriya.lk.

Contact Details

Address:
Dialog Axiata PLC,
475, Union Place, Colombo 02,
Sri Lanka.

Email: info@diriya.lk

Telephone: +94 777 678 700

X