"Businesses in Future are Differentiated by its People"
We started to write this Blog based on our experience since 2002 in working with SME's and also our recent experiences in interacting with professionals/academicians/business owners world over through Personal meetings, Linked in network, Polls and also during conference experience at SHRM Annual Conference - Las Vegas. We at Husys wanted to bring that synergy in business through people @ SME's and this series would help in achieving in setting the platform for thinking and acting.
To start with "Think Big - Act Smart" : This post is the first of its Three Part Series on Shared model for growth of SME's. While there are various effort by NGO's, Government, Institutes efforts to bring the shared models (Cluster based approach by Industry), the beginning is always with each individual business owner for effective utilisation and benefit. This attempt is to make them aware of the opportunities by SHARE concept for future proof business irrespective of Industry the SME belongs to.
The following are the topics covered in this Post - SME's referred as Small and Medium Enterprises (Businesses):
World Business - Opportunity for SME's
The world Business in turmoil due to the economic crisis for over 3 years now, moving forward there would be a time to recover. The ability of businesses to be doing small savings and business actions to sustain would be the way forward for any economy.
The lesser the overheads the better opportunities for companies to survive and sustain in future. So "The Small is Beautiful" for better future. Even large Organisations have to start thinking like the Small businesses to sustain in the future.
In this kind of backdrop the Small and Medium Business across the globe has better opportunity to grow and outsmart the biggies. Next 10 years is going to produce some of the largest corporations from SME's of today who would use this time as an advantage. The Advantage is more for Asian countries especially India and China. India is slow but fundamentally strong hence the sustenance is more. The world's LARGE Corporations have to focus on working with the Smalls in India to gain the substantial advantage in every field of business. Thus the SME Growth Story is ahead...
Type of Business Owners:
We are looking at this to distinguish the different business owners at SME's. Based on the type of business approach, each of them have different challenges in their ventures and also different people challenges.
- Few who wants to procure something and Trade/Distribute/Retail etc.,
- Invest in Manufacturing of known products and go to market
- Create Service Models, deliver and improve constantly as per market needs
- Invest in Development of Product & Services for future
- 2nd & 3rd Generation who take on the reins of their 1st/2nd Generation
- Yet to start business owners - Paper/Brain cell Based businesses - full of ideas yet to hit the ground
Typical Characteristics of Business Owners @ SME's today
These are highlighted to understand the complexity for building a better case in creating environment for sustenance @ SME's. These characteristics are both positive and negative.. Positive if you use this for better advantage otherwise prove negative if not handled effectively at right time always.
- Central Decision Making: The owner becomes the decision making machine for the organisation. Everything and anything should flow through the holy brain for instructions & execution. Like in Indian Vedic Scriptures : Water when poured through the conch become sacred and become the god gift.
- Should I Delegate: Fear of unknown by delegation is a current SME peril. You start delegating the least risks to start with, you would find more time for your business growth.
- Me and My Business: I started or running this business hence I know the best for this business. No company in the world can grow big unless the others know how to run it to make it BIG.
- Me and my Dears: The ownership of this business is mine or my next generation/my dear one's. The future of organisations are going to be complex with multiple owners(Not just the Public Limited')
- Should I believe! : How can I believe my employees/partners/associates. Business relationships are of belief and partnering for success of each Individual/Associate /Employee involved. You can't do it yourself unless believe the other party.
- What if my employee starts business : Business is not every body's gift. If they have the gift they do it anyway. You could partner with such anyway.
- I can Do it Attitude : I am too smart that I can do everything myself. You have only so much time and energy to Deliver. Help your self complement skills. You doing may not be a worth value that you give it to your business. Your time is costly than somebody with same skill to deliver.
- "I" have a big vision: What if you have a big vision - you can't achieve it on your own. It need to move from "I" to "T" of TEAM - a Human Synergy approach.
Many SME's think within their circle of reference and define the rules of the game for running business. Thinking the things around are very unique to their own business is a big myth. Move around and collaborate you would find better ways to manage from other's learning. The broader view to interact and welcoming new opportunities to learn would always help. We have many associations and government bodies working towards up-liftment of SME's in India. One need to reach out than waiting for them to reach you, since "Its Your Business".
Standby for :
Part-II would focus on How the SHARE model can help in building Partnerships, Cost Advantages and Societal impact.
Part-III would focus on How the People/HR practices and Activities can be Shared for competitive advantage of SME Businesses.
Please do post your comments and expectations from the next parts and also to improve this Blog Post.