SMEs - the recession and innovation

SMEs are like large business, they too struggle during a recession. However, they have the freedom to make decisions and move in new directions quickly.

Entrepreneurs, some of whom have gone into a form of hibernation once their businesses are up and running, can resurrect that entrepreneurial drive and try to innovate within their businesses.

However, they should not ignore a major source of innovation, the staff. Too often SME owners think that their success is purely due to their own efforts, but they could be missing opportunities. Consult with your staff as a group, and individually. Get your staff involved. Explain the situation to them and ask if they have any ideas or suggestions. You will be amazed at what comes out of these sessions at times.

Do not take your staff for granted. At times you become immersed in the day-to-day problems to the point that you cannot see the opportunities for improvement. The question is surely, what do you have to lose? Nothing - so give it a bash.

SMEs - drivers of innovation

SMEs are often perceived to be drivers of innovation. I think the truth is more likely that entrepreneurs are the drivers.

Unfortunately not all SME owners are entrepreneurs. Entrepreneurs are generally considered to be opportunity aware, which is why they are often instigators of innovation. These entrepreneurs through their SMEs, will often drive the innnovation forward quickly, simply because they are small and nimble and able to embrace change. The downside is often these entrepreneur will embrace innovation and then build a successful business around it. Therafter they no longer innovate.

This is the sad part for which we are all the poorer. Entrepreneurs must continue to innovate, and this is why entrepreneurs must become portfolio entrepreneurs, and build other businesses. They must maintain innovative momentum, through ongoing opportunity awareness.

So if you are an innovative entrepreneur, ask yourself whether you are still innovating or whether you have stagnated into a humdrum life of one business. If the thought of starting another new business scares you, ask yourself whether you are still the entrepreneur you once were?