Small and medium enterprises (SMEs) are using forward thinking and flexible platforms to enable fast growth in the future, according to new research by the Economic Intelligence Unit.
The study, sponsored by SAP, ‘Scaling SMEs: Building a flexible platform for growth’ is based on desk research and in-depth interviews with 17 senior directors of SMEs and other experts.
The research revealed that high-growth SMEs rely on operational strategy to define the future of the organisation and ensure it has predictable processes and lines of communication.
“For many SMEs, this entails setting up a formal structure rather than maintaining a loose, informal structure around the CEO,” the report said.
Maintaining high-quality financial statements and a balanced funding structure were shown as the biggest success factors when it came to boosting SME growth.
IT tools and systems are becoming increasingly more popular with SMEs as they can gain easier access then ever before, with cloud computing and ERP systems now widely available on an as-need basis, reducing capital requirements and costs and providing scalability, flexibility and resilience.
Preserving company culture was revealed to be one of the most important and most difficult factors for SMEs to maintain as they scale.
“Artificial or complex values do not scale well, according to interviewees. The key to success appears to lie in the simplicity of the values underlying the company culture,” the report said.
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