The reality of management development in SMEs

Abstract

The literature suggests that improving the management skills of owner-managers of SMEs contributes to their survival and growth and that there is considerable scope for further improvement in skills. However, evidence suggests that current support for management development (MD) does not meet the needs of SMEs. Nevertheless, there have been few changes on the supply side with policy makers continuously being concerned about low take-up of training.This study contributes to an understanding of how existing MD activities in SMEs can be better supported. Using Mumford\u27s (1987) typology of MD activities to classify our interview data, findings from interviews with 25 owner-managers suggest two approaches to providing learning support: (1) incorporate structured opportunities for individual reflection and reflection within groups; and (2) address participants\u27 concerns about training and mentoring. These findings have implications for policy makers and are timely given the current economic situation, where previous patterns of growth are being challenged and new ways of supporting MD in SMEs need to be found

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“…Improved management skills training could lead to better performance in core areas of business such as financing and strategy development. Management skill development, an area often seen as being of secondary importance for SMEs (Fitzsimmons and Fitzsimmons 2013;Coetzer et al 2011), is an essential component of a successful SME's overall business strategy (Libutti 2000). As the owner of Firm C was quick to point out, "I'm not the best at selling and dealing with money, you know, but I do my best.…”

Identifying high growth firms: Where are we?

“…Cooper, Gimeno-Gascon, Javier, and Woo (1994) explained that HGFs benefit from high levels of capitalisation that allow their owners time to successfully implement their strategic objectives, develop ambitious strategies or change their course of action. Gilbert, McDougall, and Audretsch (2006) supported this position, arguing the importance of adequate financial resources to employment and revenue growth.…”

Are financing decisions of family-owned SMEs different? Empirical evidence using panel data

“…However, when internal finance is insufficient, family-owned firms prefer debt to external equity (López-Gracia & Sánchez-Andújar, 2007;Mulkay & Sassenou, 1995;Peters & Westerheide, 2009;Poutziouris, 2001;Romano et al, 2001) to keep firm's control and capital, in family's hands. Additionally, the more cohesive management structure of family-owned firms (Bopaiah, 1998;Coetzer, Battisti, Jurado, & Massey, 2011;Huang, 2010;Huybrechts, Voordeckers, Vandemaele, & Lybaert, 2011) as well as their owners' desire to maintain the family reputation and firm's control, reduce the risk for creditors, implying lower agency costs of debt, allowing longer relationships between these firms and creditors (Menéndez-Requejo, 2006). In this setting, we can expect that it is easier for familyowned firms to obtain long-term debt than for non-family owned firms (Colot & Croquet, 2006).…”