7 Benefits of SSM Type of Business for Export Management
SSM type of business, or small-scale manufacturing, is a popular option for entrepreneurs who want to start their own export business. SSM type of business offers many advantages over other types of businesses, such as low start-up costs, high profit margins, flexibility, and innovation. In this article, we will explore the benefits of SSM type of business for export management and how you can start your own SSM export business.
What is SSM Type of Business?
SSM type of business is a form of business that involves producing goods or services on a small scale, usually with less than 10 employees and less than $100,000 in annual sales. SSM type of business can be found in various sectors, such as agriculture, handicrafts, food processing, textiles, leather, metalwork, electronics, and more.
SSM type of business is often associated with developing countries, where it provides employment and income opportunities for many people who lack formal education or skills. However, SSM type of business can also be a viable option for entrepreneurs in developed countries who want to create niche products or services that cater to specific markets or customers.
Why Choose SSM Type of Business for Export Management?
Export management is the process of planning, organizing, and executing the export activities of a business. Export management can help a business expand its market reach, increase its sales and profits, diversify its revenue sources, and enhance its competitiveness and reputation.
SSM type of business can be an ideal choice for export management for several reasons:
– Low start-up costs: SSM type of business does not require a large amount of capital or equipment to start. You can use your existing skills, resources, and network to produce your goods or services. You can also take advantage of government subsidies, grants, loans, or tax incentives that support SSM type of business in your country or region.
– High profit margins: SSM type of business can offer high profit margins because you can control your production costs and quality. You can also charge higher prices for your products or services if they are unique, customized, or have a high perceived value. You can also reduce your marketing costs by relying on word-of-mouth referrals or online platforms.
– Flexibility: SSM type of business allows you to adapt quickly to changing market demands and customer preferences. You can modify your products or services according to the feedback you receive from your customers or the trends you observe in your industry. You can also experiment with new ideas or innovations without risking too much time or money.
– Innovation: SSM type of business encourages creativity and innovation because you have the freedom to express your vision and passion through your products or services. You can also leverage your local knowledge, culture, traditions, or resources to create products or services that have a competitive edge or a unique selling proposition in the global market.
– Social impact: SSM type of business can have a positive social impact by creating jobs and income for yourself and others in your community. You can also contribute to the social and environmental well-being of your community by using sustainable practices, supporting local suppliers, donating to charities, or empowering marginalized groups.
How to Start Your Own SSM Export Business?
If you are interested in starting your own SSM export business, here are some steps you can follow:
– Identify your product or service: Choose a product or service that you are passionate about and that has a potential market demand in other countries. You can conduct market research online or offline to find out what customers want and need, what competitors offer, and what gaps exist in the market.
– Develop your product or service: Develop your product or service according to the quality standards and regulations of your target market. You can also add value to your product or service by making it unique, customized, eco-friendly, culturally relevant, or socially responsible.
– Register your business: Register your business with the relevant authorities in your country or region. You may need to obtain licenses, permits, certifications, trademarks, patents, or insurance depending on the nature and scope of your business.
– Find your customers: Find potential customers for your product or service in other countries. You can use online platforms such as e-commerce websites, social media networks, blogs, forums, directories, or marketplaces to showcase your product or service and connect with customers. You can also use offline methods such as trade fairs, exhibitions,
networking events, referrals, or agents to promote your product or service and establish relationships with customers.
– Manage your export operations: Manage the logistics and documentation involved in exporting your product or service to other countries. You may need to deal with issues such as customs clearance, tariffs, duties, taxes, shipping, packaging, labeling, insurance, payment, delivery, and after-sales service. You can also seek assistance from export promotion agencies, trade associations, chambers of commerce,
or consultants to help you with your export operations.
SSM type of business is a great option for entrepreneurs who want to start their own export business. SSM type of business offers many benefits such as low start-up costs, high profit margins, flexibility, and innovation. You can also have a positive social impact by creating jobs and income for yourself and others in your community. To start your own SSM export business, you need to identify your product or service, develop your product or service, register your business, find your customers, and manage your export operations.
The Global Demand for SSM Businesses
SSM stands for Suruhanjaya Syarikat Malaysia, which is the Companies Commission of Malaysia. SSM is the authority that regulates and oversees business entities in Malaysia. There are different types of business entities that can be registered under SSM, such as sole proprietorship, partnership, limited liability partnership, private limited company, and public limited company .
The Growth of SSM Businesses in Malaysia
According to the statistics from SSM, the number of business entities registered under SSM increased from 6.8 million in 2019 to 7.3 million in 2020, with a growth rate of 7.4%. The majority of the registered businesses were sole proprietorships (4.9 million), followed by private limited companies (1.3 million), and partnerships (0.8 million) . The main sectors that contributed to the growth of SSM businesses were wholesale and retail trade, construction, manufacturing, and agriculture .
The Challenges and Opportunities for SSM Businesses in the Global Market
SSM businesses face various challenges and opportunities in the global market, especially amid the COVID-19 pandemic. Some of the challenges include:
– Competition from other countries and regions that offer lower costs, higher quality, or more innovation
– Compliance with different regulations and standards in different markets
– Protection of intellectual property rights and prevention of piracy and counterfeiting
– Adaptation to changing consumer preferences and demands
– Access to financing and capital markets
Some of the opportunities include:
– Leveraging on the digital transformation and e-commerce platforms to reach wider and diverse customers
– Expanding into new markets and regions that have high potential or demand for Malaysian products or services
– Collaborating with other SSM businesses or foreign partners to create synergies and economies of scale
– Utilizing the government incentives and support programs for SSM businesses to enhance their competitiveness and resilience
– Innovating and diversifying their products or services to meet the needs and expectations of the global market
References:
https://www.ssm.com.my/sites/default/files/guidelines/OWNER%20RESPONSIBILITY_new.pdf
https://www.ssm.com.my/Pages/SSM-Business-Advisory.aspx
https://ginee.com/my/insights/type-of-business-ssm/
https://www.ssm.com.my/Pages/Quick_Link/Statistics.aspx
https://www.theedgemarkets.com/article/ssm-registers-14-more-new-businesses-2020-despite-pandemic
https://www.unido.org/sites/default/files/2015-07/SSM_0.pdf https://www.unido.org/sites/default/files/2015-07/SSM_0.pdf
https://www.trade.gov/export-solutions](https://www.trade.gov/export-solutions
https://www.sba.gov/business-guide/grow-your-business/export-products
