TEB SME CONSULTANTS

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TEB SME CONSULTANTS

Turkey
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

This project aims to provide free-of-charge management consultancy services to SMEs by giving our SME sales personnel the ability to examine in which issues the SMEs are strong and in which ones they are weak in order for them to be competent to grow as well as the ability to analyze their organizational structures.

About Project

Solution: What is the proposed solution? Please be specific!

SMEs in Turkey think, as a result of lack of vision, that the only problem they have is the financial problems and low-cost funds to be provided in this respect will solve all problems pertaining thereto. It appears that the primary requirements are the problems such as managerial, guidance and support service requirements, effective management of marketing and sales systems and so on. It is understood that extensive management consultancy support will be the solution of these problems. Hereby, we have decided to train SME Relationship Manager at the branches (RMs) to be able to cope with this basic requirement of SMEs, create long-term relationship with them and become their consultant bank in this context. “TEB SME Consultants” is a unique service where SMEs are offered, free of charge consultancy services about their daily business. This is not an outsourced activity but is an in-house solution within TEB where SME RMs branch sales force are trained to become Consultants. With this program they can analyze the customers not only from the perspective of a banker but they offer a 360° perspective and pinpoint every important issue –ranging from business strategy and organizational structure to production, foreign and domestic sales , marketing and HR etc.- related with the business. The mission of this service is to provide tangible results for SMEs, aiming to make them competitive both at domestic and global markets.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

TEB SME Consultancy is a service helpful to make solutions in the areas such as Production, Financial and marketing that might be difficult for SMEs to handle and in that sense it supports firms to expand in a well-planned structure. Also this service is provided without using any public resources and it is free of charge for SMEs. This project’s main goal is contributing to develop the national economy by supporting SMEs in their expanding process in area of funding as a bank and in area of management as a consultant.
About You
Organization:
Turk Ekonomi Bank
Visit website
About You
First Name

Yasemin

Last Name

Sönmez

Your Organization

Turk Ekonomi Bank

Country
About Your Organization
Organization Name

Turk Ekonomi Bank

Organization Phone

+902122512121

Organization Address

Meclisi Mebusan Caddesi Kochan No:61 Fındıklı Beyoğlu 34427

Organization Country
Organization Type

Private Institution

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Your solution
Country your work focuses on
If multiple countries, please list them here. If your solution targets an entire region, please select it below
Region(s) your solution focuses on:

Range of turnover in your target firms, in USD

$1-5 Million, $6-10 Million, $11-20 Million.

Average turnover in USD of your target firm

5000000

Number of employees in your target firms

5-24, 25-49, 50-74, 75-99, 100-150, More than 150.

Average number of employees of your target firm

10

Specify the size, average and range of expected loans or investments in each target firm

The question is not answered due to its irrelevancy with our project.

What stage is your solution in?

Operating for 1‐5 years

Innovation
How does your proposed innovation leverage public intervention in catalyzing private SME finance?

TEB SME Consultancy presents proposals to the SMEs in the areas such as efficiency in the production, effective sales and marketing strategies and active financial planning. TEB SME Consultancy clearly prevents the situations like source loss and ineffective management to occur in the companies. However TEB SME Consultancy is not a product that directly affects the leverage of public resources, with the detailed projects that are made by focusing the companies’ specific features and by that reaching the effective consequences, this product has also a role in preventing the loss of a part of public resources. In addition, TEB SME Consultancy will have an important contribution to the improvement of national economic resources.

What barriers does your proposed solution address?

Lack of SME access to skills / knowledge / markets.

If you checked any of these barriers, describe how your solution addresses them

Our objective with this program is to train RMs for the first time in Turkey, who will have exclusive knowledge to handle the work or procedure of their customers. By this means, we come close to being a consultant bank differently from all other banks. Our goal in this respect is to offer the “Consultant” RMs, who are in good knowledge about their customers and enable the SMEs to manage the conduct and expansion of their business in a sound manner by synthesizing this with banking knowledge, to be at the service of the SMEs.
This service is not an outsourced activity but is an in-house solution within TEB where SME Relationship Managers are trained to become Consultants. The contents pertaining to this training program have received good reception by the University of the Association of Turkish Chambers and Stock Exchanges and been subject to its certification. Some of the lessons are given by the educational cadres of the University of the Association of Turkish Chambers and Stock Exchanges (“TOBB”) as well.

At the end of the training, a series of visits are paid by the SME Consultant to the firm, which desires to take advantage of the service hereunder, for a detailed examination. One-to-one negotiations are conducted with the related managers in these visits, mainly with the owner of the firm, with relation to the field where the expertise will be offered.

Subsequently, various sectoral analyzes due to be made in this context as well as domestic and external researches pertaining to the products of the firm are carried out according to the content of the expertise service offered and the answers, given by the firm in the first meetings, are evaluated and then, a report of 60-100 pages that may be changed according to the field of expertise and contain due diligence and proposals for the solution of problems will be prepared within a period of 1 month.

Following the preparation of the report, the firm will be asked for a new appointment with the request for the participation of the owner and related managers of the firm in it. One copy of the report so prepared will be handed over to the owner of the firm and then, the opinions and proposals taking place at the report be shared.
It will be continued to provide support and guidance service to the firm on the matters that it may be in need within the period following the delivery.
We offer SMEs the knowledge being the power, which will put the Turkish SMEs a step forward in this competition and ensure them not to be affected by the economic fluctuations and continue to move forward in their path, through the consultancy service. It is possible to raise the output, production, turnover and profit by a few changes due to be made in production processes and marketing strategies only. It certainly appears in this respect for us, as the “TEB SME Consultant”, how much the sources, used with correct knowledge, may be more productive at the firms.

Impact
Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact

“TEB SME Consultants” is a tool for cross-selling activities and it is an effective way for enducing customer loyalty. SMEs are willing to have consultancy support but they are reluctant to pay for it . Customers are used to financial advices of their bankers but they feel surprised when they are offered suggestions related with their ways of running business. They begin to talk about production process, wastage management, strategical decisions, etc. with their own RMs. They begin to feel that the RM is not only striving only to get more profit but also thinking on behalf and for the good of the customers. Since “TEB SME Consultants” offer a brand new way for doing business with SMEs and it is a free of charge service at the same time existing and potential SME customers are attracted by it.
There are a few examples of success stories, created by our SME Consultants on this matter, herein below:
Business Line of the Customer: Mineral – Industrial Oil and Anti-freeze production
Contribution of the TEB SME Consultant: Production processes were examined, it is noticed that the boiler and pipes were out of the plant. It was emphasized that there would occur loss of heat in cold weather conditions and insulation was suggested to come over this problem. Then, the firm carried out an insulation application there and brought down the production costs by 10 %.

Customer’s Field of Engagement: Egg Production
Contribution of the TEB SME Consultant: A detailed foreign Trade analysis with relation to the global markets was prepared for the firm that has engaged in the production of egg in Kayseri since 1975 and it was advised to incline towards the export. With a report having indicated that it would increase the profit that may arise from the Support and Price Stabilization Fund (DİFİF-State incentives) at the end of export in case it received an Inward Processing Licenses (DİİB) and the profit margin of the same would be 33 percent higher by the return of VAT in comparison with its domestic sales. Then, the company which was afraid to make export was convinced that it could make a trial and send one container of eggs to Iraq, finally it turned out to be an important export item and it realized an export sale of US$ 5 million in a 6 months period. The company is no longer afraid and happy to start “export” activities as a result of our report.

Business Line of the Customer: Manufacture of agricultural machine
Contribution of the TEB SME Consultant: The production processes of the costumer which asked for an investment loan to by new machinery were examined and it was suggested by a report, prepared there under, to shift to an alternative production system at the dye-house. The workflow accelerated by this application and production was raised by 50 percent. There has been no loan requirement by the company any longer. Due to this increase in production and profit there is no longer any loan demand but the customer began to work with us with larger volumes of transaction then before.

How many firms do you expect to reach?

We currently serve with 200 consultants in 170 branches in 50 cities. The Consultants have conducted consultancy services to about 600 SMEs. By the end of this year, we aim to have at least one consultant at every TEB branch.

What is the volume of private SME finance you aim to catalyze?

The question is not answered due to its irrelevancy with our project.

What time frame will be required to reach these targets?

From 2008 until today has approximately 600 customers benefited from our consulting services. We are targeting to give SME Consultancy to the 20% of our active customers by at the end of this year.

Does your solution seek to have an impact on public policy?

No

What would prevent your solution from being a success?

The importance of the consultancy services might not be comprehended by the SMEs, the reports that are prepared might not be given so much attention, in the reports that includes suggestions for the improvement of SMEs might be not taken inot consideration or might be late to initiate are the most negative facts that can affect the success. However we as TEB started TEB ACADEMY trainings that are mainly focusing fundamentals of management. We applied this training to the approximately 7000 owner of SMEs to spread the concept of understanding the importance of consultancy services. In the long term, this kind of projects in the whole country will help SMEs give essential attention to the consultancy services and will contribute to establish more well-planned managements.

Sustainability
List all the funding sources that are required for the sustainability of this solution

The project of TEB SME Consultancy’s is financed by TEB’s internal financial resources. This project is a free service that we present to our customers. With the help of this project our relations with the customers deepen thus resulting an increase in the volumes of banking transactions with us and bringing out more revenues at the end.

Demonstrate how your proposed solution has the capacity to graduate from dependence on public finance. What is the time frame?

The question is not answered due to its irrelevancy with our project.

Demonstrate how your proposed solution will survive a potential loss of its largest private funding source

The question is not answered due to its irrelevancy with our project.

Please tell us what kind of partnerships, if any, could be critical to the greater success and sustainability of your innovation

TEB SME Consultancy trainings are provided by an expert consultancy firm. It is always very likely to have conflicts with partners at the very beginning of every project because it takes some time to get to know each sides but we work in harmony with our partners (consultants) at this project and it should also be mentioned that currently 98% of our employee have completed their training. In that sense this kind of partnership is not seen a threat for the project.

Are there non-financial issues that could threaten the sustainability of your proposed solution?

The one of the most negatively situation that might affect the sustainability of the project is the employees’ possibility to quit the project. To prevent this situation, we as TEB try to differentiate these employees in the bank and try to construct a relatively different relation with them.

Please tell us if your proposed solution aims to scale up through a high growth sector, expand immediately to multiple sectors, and/or scale up geographically

Our solution that we proposed in the terms of TEB SME Consultancy project includes solutions for all of the sectors.It should be mentioned however that the solutions for the manufacturing sector are more extensive and comprehensive. However, the dynamics of the construction and tourism sectors are quite different from many sectors so we are also in the process to make special and different solutions for these sectors.