Sunday, 22 September 2013

Building a competent business culture in PNG

Johnson Pundari, manager of The Enterprise Centre. Picture by Raksy Heron
Given its low per capita GDP, Papua New Guinea (PNG) should be a low cost place to do business. Reality, though, is contradictory. The country’s inadequate infrastructure and geographical limitations makes it even more challenging to do business in PNG. Added to that challenge is the low business intelligence, poor networking skills and high financial illiteracy rates that causes high rate of failure among business owned and operated by indigenous Papua New Guineans as opposed to their Western counterparts.

PNG however, continues to enjoy an unprecedented economic boom as well as high international commodity prices, amidst a mighty array of challenges. Pacific Business Review did an organizational profile analysis of PNG Institute of Banking and Business Management (IBBM) Enterprise Center on some forward-moving strategies they are employing to develop a competent business culture in PNG.

The Enterprise Center was established in 2010 by PNG LNG Project, operated by Esso Highlands Limited, in partnership with PNG IBBM. The centre’s main purpose is to help build the capacity of local suppliers of PNG LNG Project. The Centre is now expanding its scope to help build capacity of local PNG companies, regardless of they are involved in PNG LNG project or not.

The center has taken a more practical approach in building competent SMEs in PNG Under the public-private partnership program. In what this paper realized as a forward-moving strategy; the center uses a proven business assessment to value PNG companies in the areas of business structure, operational systems and process. This provides skill gap analysis and identifies capacity building programs.

 “We use eight best business practices: Governance and organization, business management, finance management, human resource management, asset and inventory control, safety, health and environment, quality control and corporate image” says Mr. Johnson Pundari, the manager of The Enterprise Centre”

The assessment is a key diagnostic tool that provides a check of how a business is going, identifying gaps and then customizing capacity development programs for specific companies according to Pundari.

The center offers a unique mix of services to PNG LNG Project by developing and improving the capacity of its local suppliers including landowners as well as building their industry intelligence and network to enhance their profitability.

According to The Enterprise center Manager, Mr. Johnson Pundari, the enterprise has already assessed 270 companies.

The center has also taken its business to another level higher by launching its new PNG Employment and Supplier Data Base, a mechanism that will connect PNG business and job seekers    with business and employment opportunities.


The Center also provides other intelligence gathering materials like its high successful Business Assessment Magazine. The magazine captures the details of each company the center assess. It contains the contact details, brief profile, key personal, key business o contracts and the star rating of each company indicating each company’s capabilities.  

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