In 2008, with encouragement and a small loan from a colleague, George Griffin set up the recruitment business CC Pacific in partnership with Cadden Crowe. Seven years and a lot of hard work later, he has a multi-million kina business on his hands.
CC Pacific’s George Griffin
‘There were many hurdles in the early days,’ Griffin tells Business Advantage PNG.
‘Working with minimal capital, just a K14,000 loan and a written agreement to provide a small monthly income, a laptop on my back, a list of targeted clients to meet in hand, I hit the road – literally, catching public transport and operating out of internet cafes.
‘I’d worked for another recruiter for seven years prior to venturing into the recruitment business for myself. In addition to this, I’d had seven years’ experience in sales and marketing, business management and the IT sectors.
‘I formed the alliance with Cadden Crowe who, at the time, were seeking to grow their presence and footprint into Papua New Guinea and the South Pacific.
Start-up challenges
‘But it was an extremely difficult, time-consuming and frustrating process for a PNG citizen with no business history to gain lines of credit for cash and/or consumables.’
The start-up hurdles ranged from simply opening a bank account and setting up credit facilities, to leasing a car and obtaining a credit card.
Griffin says if he’d not had the support of senior staff at Cadden Crowe and the people in the organisations he was trying to do business with, ‘I would have walked away many times’.
‘I wonder how many others have tried and are trying to do things the right way and just give up or find alternate ways to operate.’
Once the start-up hurdles were overcome and he began to win work, other challenges arose: cash flow, finding competent staff, staying local but meeting international expectations and adapting to the standards used by larger clients.
Perhaps the hardest challenge, he says, has been holding firm when clients are driven by ignorance, deadlines or a desire to avoid tax when they sought to bring non-national staff into PNG on inappropriate work permits or visas.
But after winning his first big contract to supply contractors, Cadden Crowe and Rubicor advanced Griffin around K140,000 to cover payroll, and related expenses.
‘I was able to pay that back in around 18 months and since then have operated within our own cash flow, with an overdraft facility available if needed.
‘As a small PNG business with limited cash reserves, winning a major contract supplying labour hire can be very stressful financially—more so when clients, usually the major multi-nationals, prefer to pay for services 60 days or later after receipt of invoices.
‘I wonder how many others have tried and are trying to do things the right way and just give up or find alternate ways to operate.’
Multi-million kina business
Griffin’s business today has five head office permanent staff, two site-based supervisors, around 50 contractors on site and in Port Moresby, made up of expatriates and nationals.
‘Employing a strong Financial Controller has been a key reason for my success to date.’
‘We maintain a low-rent office in Port Moresby and watch every toea.’
That careful eye has paid off.
In its first full year of operation in 2008, CC Pacific’s revenue was K3 million. 2013 was a bumper year, with revenues just under K12 million. Last year, it was just over K8 million.
‘Dependence on overseas labour is causing social issues, increases the costs of goods, services, accommodation and contributes to an increase in inflation that has a detrimental impact on ordinary Papua New Guineans. We also do not seem to be training enough people to replace those who are ageing and or leaving the workforce.’
‘In recent years we have been assisting clients improve the governance of landowner companies that have been engaged to service them. So we have found ourselves taking over their payroll service and ensuring the people are paid properly, that appropriate taxes and Nasfund contributions are paid and then training the land-owner company to take back this responsibility.’
‘We currently run payrolls for around 220 people in three companies.’
PNG’s skills shortage
After 14 years in the recruitment business, Griffin is critical of PNG’s education standards (‘which have fallen’) and talks of the huge need to deal with the skills shortage.
‘Our skills shortage will continue to haunt industries in PNG and abroad.
‘Dependence on overseas labour is causing social issues, increases the costs of goods, services, accommodation and contributes to an increase in inflation that has a detrimental impact on ordinary Papua New Guineans.
‘We also do not seem to be training enough people to replace those who are ageing and/or leaving the workforce. There’s a “boom and bust” mentality towards training in most companies and from the government.
‘Internationally qualified Papua New Guineans will continue to seek better opportunities overseas when they can, unless opportunities at home address their career advancement’
‘Similarly qualified professionals such as accountants and human resource practitioners appear plentiful; however, the standards vary greatly. We also need specialist people in the maritime industry, veterinarians, and a wider array of other professionals.’
Retention of qualified PNG nationals is another serious issue. Salaries vary so much and people appear to move regularly, some companies are getting smarter and offering an array of benefits, health, education, home loans, etc.
‘Internationally qualified Papua New Guineans will continue to seek better opportunities overseas when they can, unless opportunities at home address their career advancement, their aspirations for the education of their children, health needs and the law and order situation improves.’
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