SME’s need BIG Business to back them.

Derek King

SME’s need BIG Business to back them.

I have always been of the view that business is done between people not companies. Its about the trust a person has in the other that leads them to decide and enter into a business relationship where the value is clear to both parties.

You win a Rugby World Cup by making bold decisions, not being afraid to change tactics and taking risks with player combinations to deliver the winning result.

We must give Rassie and Jacques credit for trying things that other coaches wouldn’t dare to try. They had the freedom to do things differently, and that they did, boldly.

But, had we lost in the quarter finals, we might all be saying they were mavericks who should have been more conservative in their thinking. Had we lost the semifinals, we might have said that they got ahead of themselves. Game by game trust was built into the finals.

The conventional narrative shifted. Ironically everyone was hoping for something different, unconventional, something we have not seen before.

Surprisingly we now wanted them to be the mavericks of the coaching world.

The Springbok players delivered by fully buying into this approach – it was clear to them that the old conventional approach and traditional strategies were not going to win matches.

Let’s come back now, to SME’s trying to do business in South Africa.

Small and medium-sized enterprises (SMEs) make up over 90% of global businesses and provide roughly 50% of worldwide employment according to the World Bank. In South Africa SMEs contribute roughly 34 percent to South Africa’s GDP (according to a report by the International Finance Corporation). The role payed by SMEs in the economy as drivers for reducing unemployment cannot be understated.

An SME is usually started by a bold founder who believed that they could deliver a better and more competitive solution than what was being offered in the market. They saw a problem and thought “I can fix that.” So convinced they were of the value they could deliver, they gave up their safe and reliable corporate jobs to carve out a new career path.

The SME founder is hungry to succeed, and their ideas, energy and passion are real, not driven by a corporate template or culture engrained from decades of doing the same thing.

Ding Dong!

SME’s are calling on large industry players, trying to convince them of their unconventional approaches and value propositions. SME’s who can deliver with flexibility, agility and competitive pricing are being denied opportunities because the brand isn’t BIG enough.

Is there a risk in giving an unknown SME an opportunity, of course there is, but weigh up this risk against the upside you are likely to get.

My hope is that business leaders who have positions of influence and authority in the large corporates of South Africa look at the result our Springboks achieved. A result of success against many odds, but a belief that doing things differently was the only way to achieving the ultimate goal of winning the world cup.

My hope is that large businesses in South Africa allow SME’s the time and opportunity to tender and pitch on business opportunities and they don’t just default to a perceived less risky approach and award business to a large supplier.

My hope is that SA’s large business appreciate what can be done by making decisions based on human connection, and not just relating to the corporate name.

South African’s are world class and have world class solutions and technology, believe in this and you might be pleasantly surprised by the results.

My hope is that large business try new approaches and take local South African SME companies and technology seriously.

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