In the business context, every small or medium organizations (SME's) want to be profitable and always target to have new customers into their database. SME's are so much into acquiring customers that they sometimes miss scanning the internal environment of the organization. As per the Ministry of Industry Report published in 2000 by Statistics Canada, the failure rate for small and medium-sized organizations in Canada beyond the initial one years remain high.
There are several reasons for their failure. As per Canada start-up organization, the number one reason for small and medium enterprise failure is lack of experience of business owner. We all agree that starting a business requires investment, courage, and commitment of a lot of time. Bringing a small or medium firm from inception to the growth requires more than money and desire to be a businessman or businesswoman.
Are there any other ways to provide the experience or the skills to the SME owners? Or are they only left with an option to try and test approach?
In my opinion, there is a need and an urgency to support the small and medium firms management by the systematic consulting approach to fill the unseen gaps. Finding and discussing the reasons for SME's failure would not benefit either the economy nor the people or staff who work for them.
There lies a bigger challenge to provide consulting to small and medium firms in Canada and the United States of America.
In my own consulting experience, I have noticed that owners of SME's are resistant to share their insights to the external consultant due to lack of trust. Trust is hard to build and takes time. Ask any of the owners of the SME's anywhere around the globe or their family members, the two significant challenges faced by them are lack of time and people management. These challenges lead them or better to say push them towards short term vision.
It would be an injustice to business owners to expect them to have the business skills of an MBA or vast knowledge of the industry. The only possible way for small and medium enterprises to integrate long term vision into their system is to keep themselves open to consulting skills.
Interestingly, we always hear how technological advancements are making the world better. However, there is not much media coverage about how consulting services can be beneficial for small and medium enterprises.
A fruit of us to ponder :).