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?

SMEs - how many practice before committing (2/2007)

I read an intersting article about how many SMEs are started as home businesses while they still have jobs.

These people then practice until they are confident and then leave their jobs and launch the business formally. I have seen this a lot in South Africa, but not in the complete form. Rather they stay and have 2 incomes. If the husband and wife are both doing this, and I have seen that quite often, they now have 4 income streams.

There is an obvious ethical problem with those who stay in their jobs, but I suppose it is a reality that is hard to overcome.

Personally, I believe that these type of people could be highly successful if they applied themselves full time to the running of their own businesses, and that they are wasting their talent in this way.

Rob Smorfitt