If you are an SME then the Government is putting its faith in you to help get the country back on its feet.
You need to be in a position to grow and take on more staff so that we can reduce the unemployment rate. So are you ready?
Do you feel capable of taking on this responsibility? If you are not sure you are ready, or don’t feel quite capable, then read on…
I don’t know how many people have been made redundant over the past three years, but according to the Department of Work and Pensions in just one quarter in 2011 150,000 redundancies were made. Now that’s a massive number of people out of work and for whom we need to find jobs. So how can we grow a sufficient number of SMEs to take on this many people? Let’s look at which businesses are considered most likely to grow.
If we take a look at which SMEs are most likely to be backed by investors (so considered a good bet for being able to grow significantly and to eventually sell at a profit – and generally with a team of people) then these tend to be from a creative, IT, manufacturing or health background. These people are usually very passionate about what they deliver, and often quite innovative, but I wonder how much business acumen and business knowledge many of them have? This train of thought was backed up by a recent discussion with a university who said that few of their MBA graduates start up their own businesses compared with graduates from these other specialisations.
So if we want to help the country get back on its feet and we believe it is through new and smaller businesses growing that this will occur, why can’t we get a government initiative happening that marries people with business acumen and people with a viable product or service?
I don’t just mean through a mentoring scheme, which I believe is important too, but through actually encouraging small businesses to take on full-time or contracted people with a good all-round business understanding. I wonder how many SMEs have a regular board meeting and how many of them use non-executive directors who can give them an objective view of their business?
Some of these initiatives will help SMEs develop the right business strategies to grow profitably, to be a safer risk for lenders, to take on more staff, and to help us get the country back on its feet.