Something we get asked here a lot by our clients, is what do we think SME’s need most to become successful? Although the answer to that question isn’t as easy as it may seem, we usually tend to focus on the management aspect of any business as this is the foundation that will ensure growth and success.
In a recent study conducted by the Warwick Business School, they found that many of the UK’s SME’s are being held back by poor management techniques. The study, which surveyed 2500 SME’s, found that many business owners, employees and vendors stated that poor management skills was the number one cause for reduced growth. These skills included information sharing, participation in decision making, training and employee ownership.
Lead researcher, Professor James Hayton, of Warwick Business School, stated, “When looking at the distribution of skills in the population, there is currently a ‘long tail’ of SMEs not employing management best practice. Under-developed leadership and management skills and a widespread failure to adopt management best practices are constraining the performance and growth of a large number of SMEs.”
So, by taking the factors associated with entrepreneurship skills, leadership and management skills as well as the implementation of management best practices, the study concluded that the relation of these factors is directly responsible for increased turnover, decreased productivity and slow employment growth.
What can business owners in the SME sector do to avoid a failed business? Aside from developing new leadership and management skills, which is usually difficult if there is a lack of skills to begin with, they should consult an SME strategy firm. An experienced team of SME professionals can help create a business strategy, provide trained resources and increase the focus on sales to help turn a poorly managed SME into a dominant force in the industry.
With the right training, effective management skills on all levels and a sales force that gets results, an SME can succeed. To learn more about our SME services, contact Sales Guys today.