SME Blog

M class

Q: If there are approximately 4.3m SME’s in the UK then how many of this 4.3m are M’s (medium-sized enterprises)?

A: 26,000 are M’s

Our M class is a select group.  Contrast this with 3.2m SME’s of the one person variety (e.g. sole traders and companies comprising only one employee) and it’s clear what a wide range of businesses the term SME actually covers.

The M's face unique and numerous challenges. Market share and globalisation are vital factors. Unlike a self employed electrician there is distinct possibility that the M’s market share could be eroded from global competition such as China. Technology becomes a serious issue. A small business can act as a team and get around system deficiencies, but as the company grows streamlined systems are essential to gain efficiencies and maintain control.

If the challenges are unique and numerous for the M in SME then as Jyoti Banerjee notes in his guest post at Vinnie Mirchandani’s blog:

Leaders of Ms often struggle when it comes to knowing where to turn for help and advice. They are rarely plugged into peer networks where they discuss their challenges and learn new ideas relevant to their scale of organisation.

This gap is about to be plugged with the M Institute.  It’s early days, but it looks promising.  The next meeting is in Birmingham.  Mmm, maybe it's time I took a trip out of London.

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Recruitment and the SME competitive edge

In today’s competitive business environment it’s not only customers that SME’s are competing for it’s also employees.   Successful growing SME’s rarely contain mediocre people. As Stuart Jones would say “People are not your most important asset.  The right people are.”

Companies large and small are in the market for good people.  To assist in recruitment of these people SME’s can use their competitive edge.

Move faster

Ambitious, bright people do not stay on the market long.  With SME’s there are no panels and committees, no chains of command.  They can move fast to secure the right people.  An offer to an employee can be on the table whilst a large company is still in the blocks.

Flexibility

Flexibility is a key SME advantage when it comes to attracting customers. If flexibility gives competitive edge to attract business then the same approach can be used to attract good people.  A flexible work environment is a benefit to employees.  Therefore consider part time home working for workers with big commutes or having core hours sandwiched between flexible hours at the beginning and end of the day.

(Tip: If SME’s have a competitive advantage in flexibility then look for the same flexibility in your future employees.) 

Growth and development

SME’s are often great places for ambitious bright people. In large companies the controlling top management is hidden behind the chain of command.  In SME’s the controlling management are normally on the ground.  The difference is enormous for the ambitious bright person.  In a SME the key decision makers quickly notice the abilities of the ambitious bright person. 

In a SME ambitious bright people will always be valued highly and are likely to get more responsibility and a better chance to grow and develop.  The size of a SME means that the individual is part of a team rather than a machine, not a small cog in some large workings.  They can be a significant contributor to the business and can expect to be rewarded as such. 

I got the inspiration for this post from an article on BusinessWeek called Small Business Secrets to Hiring.  It's worth a look if you want further thoughts on this area.

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