The meaning of ‘Small’ in Small and Medium Enterprises (SME)

The meaning of ‘Small’ in Small and Medium Enterprises (SME)

Small & Medium Enterprise (SME) owners are smart. Yes, contrary to popular notions, they are smart at making money, smart at negotiations, smart at managing day-to-day business operations in a highly unorganized business set up.  They know their business like at the back of their minds.

Unlike a corporate or a big corporation, Small businesses do not rely much on processes or systems. They manipulate and maneuver things purely based on instincts and practiced methods they have championed from years of running the business. They work their way around every day business challenges or big crises situations, alike with guile and an ability to think-on-their-feet.  They are forever experimenting with new ways to overcome old, repeating problems.


The ability to be agile, to be able to manage business smoothly, it requires small businesses to keep their ambitions small.  Scaling up a business means expanding the sphere of operations across all aspects of business. Hire more people, push for new client acquisitions or increase productions – it puts pressure on their SPAN; the smart ways they have mastered to run their business no longer serve the business’s purpose.  It’s like encircling a small area in a geography and deciding to rule over it, as opposed to setting one’s eyes across the whole breadth of that geography.  Moreover, as a business becomes big, it requires them to be more compliant, put processes and systems in business, be more organized.


Some small business owners choose to remain small even if they are given the opportunity to get a bigger share of the industry they are in. Because they know they cannot manage the pressure of scaling up or lack the skill sets to manage a bigger, ambitious business.


This is the reason why the best of consultants, experts, mentors and best business practices – nothing can improve the performance and profitability of a small business that chooses to remain small.


A&A Business Consulting works with more than 1500 SMEs in India. All our big success stories have come with medium and big businesses or small businesses where the owner has shown the guts and intent to grow big.  Consulting, as we preach, is not a magic potion that will transform any business over night.  It can only help businessmen who have the vision and the intent to grow big. Knowledge, implementation expertise and problem solving are the skills of a consultant. But the intent and the will to grow a business must come from the SME owner.


If you are one of those businesses, who has the appetite for growing a business and getting to the top, reach us today


If you don’t want to grow, we can’t help. This blog is not for you!

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