You are invited by your neighbourhood Young Entrepreneurs Association to talk about
SME Management. Identify 5 characteristics of SME’s that you would focus on in your
presentation, and explain why they are important.
Answers
Explanation:
5 characteristics of SME’s
1.Be prepared to work really hard
Fifty-six per cent said you need to ‘be prepared to work really hard’, as running a small business can demand long hours and for some, well beyond those of a standard full-time job. 44 per cent of SMEs agreed that they have this trait, but far less agreed they have the traits below.
2. Be passionate about your business, and be persistent, no matter what
Could passion, purpose and persistence be the new three Ps? According to forty-five per cent of SMEs in NAB’s report, a ‘never give up’ attitude against adversity and an unwavering belief in your business are key ingredients to success. One SME owner, six years in hospitality, commented: “Passion is what gets you started but it’s perseverance that gets you through. You can burn through the passion pretty quickly.”
3. Be good at dealing with customers, especially when they’re being difficult
The saying ‘the customer is always right’ certainly applies for SMEs, with 43 per cent agreeing this is key to success. Turning a negative customer experience into a positive one can result in positive word of mouth, and it’s also possible that a difficult customer can become an advocate.
4. Be a life-long learner and update your skills
Being dedicated to learning and enhancing your skills isn’t just about going back to university, it’s also about using mentors, networks and competitors as opportunities to learn – and another tool is having an open mind. 42 per cent of respondents agreed this is key to success and they also say it’s important for your staff as well.
5. Be willing to fail and learn from your mistakes
A bad day for an SME owner can also be a great day for business, if you look back at what went wrong and make proactive plans to address any issues head-on. No pathway to success is smooth, and 41 per cent of respondents said this willingness to accept failure and learn is a key character trait for SME success.