By Leong Phei Phei

THERE is no magic formula for success - just ask winners of this year's Enterprise 50 (E50) Awards, an annual award that recognises 50 of the most enterprising privately held companies here.

These companies are built on clear and strong organisation structures.

They have positioned their businesses to respond effectively to short-term challenges while planning for longterm prosperity.

Whether responding to challenges or opportunities, these companies continue to focus on preserving value through proactively managing their business strengths and vulnerabilities.

These are common traits shared by this year's E50 winners, says Mr Danny Teoh, managing partner of KPMG LLP in Singapore.

For the second year running, KPMG is co-organising the E50 Awards with The Business Times.

The award is supported by the Infocomm Development Authority of Singapore, International Enterprise Singapore and Spring Singapore.

Since its inception in 1995, the E50 Awards have consistently drawn applicants from a broad range of industries.

This year, the winners hail from various industries and sectors such as business services (2 per cent), information technology (5 per cent), engineering services (14 per cent), logistics (7 per cent), real estate and construction (11 per cent), wholesale, distribution and retail (27 per cent), manufacturing (13 per cent) and others (21 per cent).

Some of them, like Ryobi Kiso (S), Gaylin International and King Plastic, are receiving the awards for the first time.

Seven companies - including Kenyon, Koufu, Orient Express Lines and Farlin Timbers - will be receiving a special award for being on the list for the past five years.

Samwoh Corporation, a significant player in many fields - including civil engineering and infrastructure construction, road and airfield construction and maintenance and shipping services - is top on the list.

Similar to previous years, the E50 Awards applicants were evaluated and ranked based on quantitative and qualitative criteria.

Quantitative factors include financial performance indicators such as operating profit before tax, turnover and profit growth.

Qualitative aspects include management and marketing strategies such as the applicants' business model and their innovations, management ideals and governance, market branding and overall potential.

Last year, the awards took on a different hue, with qualitative factors accounting for a greater percentage of the overall scoring than in previous years.

In particular, it took into greater account the projected growth of the applicants, rather than just historical financial records.

This means that promising companies which are not generating large revenues currently but have the potential for sustainable growth would be in a stronger position to be placed on the winners' list.

Mr Teoh says: 'This year, we also looked at the company's ability to sustain itself, as many companies over the past year were no longer growthfocused but were in preservation and sustainability mode.

'The new criteria were included to evaluate the applicants' models and innovative capabilities to withstand the economic downturn.

'These include the ability to use customer data, market or product information to identify opportunities for innovation, and measures to improve and sustain demand and to reduce costs.'

A key and salient addition to the judging criteria in light of the downturn was the applicant's liquidity and risk management practices.

Mr Teoh says: 'In times like this, it is paramount to stay liquid and not take significant risks, as capital is scarce or expensive.

'Those with cash will be presented with many investment and acquisition growth opportunities.'

Every year, many organisations clamour to be on the E50 list. Past recipients have cited benefits such as a stronger business reputation, greater recognition by suppliers and customers, enhancement of strategic business relationships and a boost in staff morale.

Mr Alvin Tay , editor of The Busin e ss T imes, says: 'The E50 Awards are an affirmation of our winners' compelling business models and sustainable growth potential. They have performed commendably well in these difficult economic times and should be proud of what they have achieved.

'With their E50 rankings, many past E50 recipients have moved on to list on the Singapore Exchange as they embark on a new phase of growth and expansion.'

As the economy slowly makes its way out of the downturn, awards like the E50 take on greater significance, underlining the vital role that small and medium-sized enterprises (SMEs) play in contributing to the development and vibrancy of the Singapore economy.

Moving forward, Mr Teoh says: 'A strong SME sector is often the economic pulse of many great economies and a catalyst for growth.

'In Singapore's case, it can form the bedrock for innovation and entrepreneurship. In so doing, it makes our economy stronger and more resilient. Such resilience will serve Singapore well.'

Read all the stories below:

	Lessons from the financial crisis Good companies had proper credit policies and managed their resources well: KPMG LLP.
	Helping SMEs grow OCBC prides itself on its expertise and experience to support SMEs at every stage of their development.
	The right tools Three agencies help to equip SMEs with the knowledge and skills to succeed.
	Diversifying for success Being a one-stop supplier of goods and services enables Samwoh Corporation to become a preferred choice in the civil engineering and infrastructure construction sector.
	Solid foundations With strong fundamentals, Ryobi Kiso is poised for expansion beyond its current strength.
	Getting it right the first time Tru-Marine depends on its efficient staff to serve customers well.
	Turning crisis into opportunity The economic downturn has enabled Koufu to explore and make the most out of new avenues.
	Total gas solutions Union Energy Corporation expands its business to other energy markets beyond the LPG trade.
	Kudos to the staff Employees take the limelight in engineering company Kenyon.
	On-time delivery, every time Consolidated Pipe Carriers is driven by the pursuit of excellence in everything it does.
	Sweet smell of success Borden's Company Eagle brand of medicated oil continues to be popular with its loyal users.
	Building a solid future Farlin Timbers aims to grow its business by providing superior products through innovative processes.
	Sailing through stormy waters Orient Express Lines (Singapore) aims to ride out of the rough weather in the shipping industry.
	Doing it right Putting customers first is the secret of Atlas Sound & Vision's success.
	Eye on the world Nordic Flow Control is poised for further growth in China and beyond.
	Sharpening its competitive edge An effective business model enables Star Furniture to grow even during the economic downturn.
	Hitting the $100-million mark Gaylin International aims to take its business to greater heights.
	He knows what customers want iKnow's CEO Alvin Goh recognises that the company which goes the extra mile keeps its clients.
	More than worth its weight A strong track record in transporting heavy equipment takes Yew Choon around the world.
	Diamonds are affordable An unwavering dedication to provide customers with value-for-money jewellery enables TAKA Jewellery to hold its own in the business.
	Green designs Greenpac (S)'s unique business model and core strength in providing environmentally friendly and innovative packaging solutions make it successful.

This article was first published in The Straits Times.