What’s Killing SME’s Growth?

 

The most common notion is that small and medium enterprise lack adequate & quality management system to accomplish new growth -Implying that a more competent manager or the more efficient system will be more successful to do the task. A business leader will then result in hiring a new manager to effect a method such that it sustains growth for the company.

 

Many CEO’s and their executive board members often ignore the fact that rarely does ideas for new growth in any business emerge fully formed in the head of an innovative employee. The capacity of an organisation to innovate does not depend solely on assembling a team of rock star employees while ignoring the strategic patterns of coordinating between people as well between people and other structural resources that exist within the business. Even the Steve Job’s of many companies do not become radical thinker in one day – they usually form their innovative mindset from a culture that has been built over time thus, making it easier to perform creative work on a constant basis. It is imperative for business leaders to recognise that growth and innovation only thrive in environments that are sensitive to forces that act upon the innate talent of every individual involved in the business.

 

Stack the odds in your favour

Forces that powerfully influence what the managers choose and cannot choose to do. There are many factors that could undermine small and medium enterprise ability to sustain growth. Notably from the previous paragraph that lack of critical and nonparallel thinking from business leaders or start-up founders is my focal point in this letter. An average SME executive’s inability to ask a question, observe, create a network of ideas and experiment on how those ideas could become a tangible value-add for their clients or users. When a business focuses on building a culture of discovery and then become defined by these habits, they incrementally grow their capacity to innovate, expand their market share, and subsequently increase in their market cap.

 

Why a truly defined business strategy should be the essence of your organisation

More often than not the word strategy is overused, but in an organisation where the management has outlined strategic objectives and seen as an integral part of their business process, in such case strategy is not just a buzzword but what we call an “index terminology”. A truly defined business strategy characterised the correlation of an organisation’s resource capital; skills, opportunities and risks created by its external environment (Robert Grant 2001). Companies usually start off by describing their processes or plans as the strategic move they intend to execute on, but very quickly you will find that this “strategy” has been backed into a narrow corner even before implementation begin. By doing so, they reduce strategy into a left-brain exercise and, as a result, nullify the vitality of ideas that could arise from it.

 

How the myth of “Keeping it simple” is killing your SME growth

Also many believe that at a very early stage, only a primary business process is needed. This ideology is usually connoted by the common saying “keep it simple stupid”. While most enterprises are busy KISS-ING their strategy becomes more and more about goal formulation rather than a coherent approach to strategic thinking. A competent business leader knows that strategy is about telling stories; not a story of how the idea came to fruition or a type of formulated marketing story.

 

How to get people to trust your brand

Tell a good story… specifically, a story that teaches others how you want to be perceived. You can share specific stories that highlight the specific moments that make your company what it is today. Theodore Levitt in his landmark article marketing myopia proposed a solution to the problem of external change be that companies should define their served market broadly rather than narrowly. Many small companies have short-sightedness in how they approach marketing activities. Thus, they fail to implement a funnel vision in their business strategy; that is a: railroad company should perceive themselves to be in the transportation business, not the railroad business. However, such broadening of the target markets is of little value if the company cannot quickly develop the capacity needed to deliver customer requirements in a broader sense.

 

How to get others to give a damn.

An analogy to illustrate this idea is the act of telling a story, not just any story, a damn good story. When we begin to hearken to a narrated story, usually we disregard the time it took the storyteller to arrive at his final point; we continue to pay attention as long as they can articulate the message and keep it relevant to why we gave them our attention in the first place. If the story consistently stimulates our cognitive reasoning, we will endeavour to follow the story until the end. Think about the last time you saw a short boring film and a very long but exciting one. Usually, after it’s over we then wonder how we have managed to sit through the movie for 3 hours. More often than not the person telling the story have done an excellent job in capturing your attention for that long. The same principle goes for companies that strategically build capacity and those that don’t. I have never wondered the Lord of the rings the movie is so long but I have found myself wondering why Donald Trump keeps getting airtime…but, of course, he’s the President of United State.

Once you’re able to locate what’s stopping your business from growing, you can take actions to address it and start revving up your innovation engine.

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