Small and Medium Enterprises (SMEs) often struggle to set up repeatable and scalable procedures and systems to guide operations compared to larger corporations. This leads to high levels of disorganization with managers constantly fighting fires. The lack of standardized procedures leads to unempowered staff requiring daily directives from managers. Decision making is also chaotic due poor communication and feedback channels.
While SMEs are more flexible and might be able to respond to change faster, the majority of them performs below their potential due to internal inefficiencies and constrains to align to international accounting standards and government regulations, human resource and safety standards. In addition, financial institutions consider SMEs risky and thus we see continued constraint in accessing credit despite reduced interest rates. This all results in: