Small And Medium Sized Businesses Are Not Little Big Businesses
Looking at the way smaller businesses are treated it got me thinking – An SME is not a small version of a large business and so should be looked at differently.
Especially in the modern business environment the SME is very much a business type that should look to achieve and maintain optimal size.
Among advisers and others there is a constant demand for growth. However we see so many cases where SME businesses have grown too big or have been bought up by large businesses only to lose their reason for existence. An SME is a specific type of business (especially at the smaller end) and should be treated as such. Not only by management but also leaders, advisers and government. Understanding what works in an SME requires different skills and knowledge to understanding a large corporate and yet too often advisers and planners in the SME space have come from large corporates.
Honey bees are incredibly successful, but when the hive shows that it will grow beyond the optimum size the bees do not go for the kudos of an ever increasing business but instead split into two smaller more efficient colonies by swarming.
Maybe we should take a lesson from this and encourage the splitting of growing businesses into smaller enterprises to capitalise on all the advantages of being able to react quickly to the constantly changing requirements of the modern environment. Economies of scale in most areas are the business practices of the nineteenth and twentieth centuries. We need to think again.
If you want to look at this further we have both manufacturing and service simulations to enable everyone to be more effective. Please contact us for details – https://www.wellsassoc.co.uk/contact/.
If you want to be kept up to date with blogs and other matters please subscribe to our newsletter – http://www.wellsassoc.co.uk.