SMEs - where do you fit in?

SMEs fit into one of the three (3) categories of SME I defined in the previous three blog articles.

So where do you fit. Are you a survivalist? Are a lifestyle entrepreneur? Whatever you are, it is important to know!! The lifestyle entrepreneur is the most difficult to motivate to change his or her ways.

Are they worth changing? I think that there are undoubtedly many worth changing, but the question is how to do so. It is a very difficult process, and I have yet to succeed on a significant scale. I believe that only they can change themselves. As I have stated previously, it is all about the ego. Unless they can manage their ego to the point where they can acknowledge they are wrong, they will never change. The ego will ensure that they do not change.

The survivalist, that is the one who was previously employed, may be able to break out of the mould he is in. but it is almost as difficult. These people seldom have egos. They have very low self esteem, and this has to be changed, by themselves. they need to build their own self-esteem, to the point where they believe they have the skills to do more. I do not know if they are able to grow into high growth ventures, but they can most definitely grow beyond their current position.

Which brings me to another option. An option that most entrepreneurs avoid like the plague. The partner/fellow director.

Research points to the fact that those businesses with multiple owners are generally more successful than those with single entrepreneurs. There is no doubt that 1+1=3 when it comes to multiple directors. One secret is to avoid partners with competing skills, rather seek someone with complementary skills. Accountants often make good partners, especially if you are technically or sales oriented. Give it some thought and remember that the main purpose of starting a business is to create wealth. Nothing else is important, and everything else eventually links back to this wealth creation.

SMEs - the survivalist entrepreneur

SMEs - the survivalist entrepreneur. Do they really make a difference? If we assume we have 3 basic groupings of SME, the survivalist, lifestyle and high growth entrepreneur, we need to understand where the value is added to an economy. This blog will consider the survivalist. Many people perceive the survivalist to be the uneducated BOP person who is doomed to poverty. The kind of people who were targeted by Grameen bank and their subsequent followers. However, the person who has been fired or re-trenched and who is unemployed in contracting markets is every much a survivalist too. The difference is that they may be well educated and highly experienced. However, in both cases they want employment, albeit at different levels. Therefore government interventions for these two survivalist sub-groups need to be handled and processed in a different manner. Neither really wants to own a business. Neither of these are likely to directly and significantly contribute to employment and/or GDP growth, but will indirectly benefit from employment and GDP growth as and when they find employment. Therefore government needs growth from alternative sources in order to reduce the number of survivalists. The fewer survivalists, the better the economic health.