If you're considering an opportunity in an SME or Family Business
Here are a few things that you might like to know...
What is an SME (a small medium enterprise)?
Small and medium-sized enterprises (SMEs), defined as those with up to 250 employees, account for 40 percent of the economy’s total output on a value-added basis, and 31 percent of all employees. They make up 97% of Kiwi businesses. SMEs are the backbone of the New Zealand economy. The unsung heroes!
what is a family business?
Family Businesses are a common form of ownership within SMEs. We lack recent New Zealand data but the most recent conservative estimates place the proportion between 65%-80%.
Definition of Family Business:
The majority of decision-making rights are in the possession of the natural person(s) who established the firm, or in the possession of the natural person(s) who has/have acquired the share capital of the firm, or in the possession of their spouses, parents, child, or children’s direct heirs.
The majority of decision-making rights are indirect or direct.
At least one representative of the family or kin is formally involved in the governance of the firm.
Listed companies meet the definition of family enterprise if the person who established or acquired the firm (share capital) or their families or descendants possess 25 percent of the decision-making rights mandated by their share capital.
Why you should consider an opportunity in an SME or Family Business
The job role is broader and more varied. SMEs tend to be less rigid in structure and job roles are usually less defined. In SMEs, the approach is more hands-on, giving you more exposure and responsibilities. This offers graduates more opportunities to develop their skills in a broad range of roles which you might not be able to do in bigger companies. As a result, you will broaden your skill set and plump up your resume further.
There’s often less emphasis on hierarchy, which can create an open work environment – you are encouraged to interact frequently with the senior management, or are often reporting to the Owner/Manager. Even if you’re new to the company, working in closer proximity to management allows you to share your thoughts and ideas and give feedback on company matters.
Better communication between you and management can help you to get your work done and receive recognition for it.
Go further, faster. The bigger the company, the more competition there is. Hard work in an SME will not go unnoticed, especially if you have proved your worth. You might just get to climb the career ladder and go further faster in a smaller company. Graduates who started working for SMEs often realise that they make more of a contribution to the company than their peers in large organisations.
Everybody knows your name… the smaller workforce in SMEs means that the culture is more personable and is often more informal and friendly. Everybody generally knows everybody else and there are fewer office politics involved.
If you are an aspiring entrepreneur there is no better place to learn and grow. You are exposed to all divisions of the business.