For most small and medium-sized enterprises (SMEs), governance is something far away. In other words, measures of good governance are not yet part of daily practice. Particularly explosive growth and/or external demands, for example from an external financier, have changed this to date. Especially to make the likelihood and impact of risks manageable. Oddly enough, because fundamentally every entrepreneur wants to be successful and certainly not fail. Thus, corporate governance aimed at SMEs is actually relevant for every entrepreneur: it is about having control over realizing entrepreneurial ambition. And there's quite a lot involved. Therefore, we will be paying ample attention to this unexplored area in the world of the entrepreneur in the coming period.
Today, Route ICR shares the first article from the series 'How to practically implement SME governance'.
Five Misconceptions About Successful Entrepreneurship
Amsterdam, July 15, 2021 – Entrepreneurship is simple. But the hardest thing is to undertake simply. But why is that? Let's discuss this in the coming period. And also look at how this problem can be solved. Today, Route ICR shares the first article from the series 'How to practically implement SME governance'.
There are quite a few misconceptions about entrepreneurship. And especially about its successful implementation. Let's look at the five most striking misconceptions. These are crucial both individually and in their interrelation for success.
Misconception (1) I don't need a crystal-clear entrepreneurial ambition to be successful
To steer purposefully, logically you need a goal. For entrepreneurs, the ultimate goal is equal to their entrepreneurial ambition. This makes it the starting point for steering and control. In other words, to give direction and have a grip on the execution.
Misconception (2) I must say yes to everything, grab anything that comes along
It might be tempting to say ‘yes’ to everything. But it doesn’t help to create the right focus. And therefore, it is almost impossible to achieve effective and efficient processes in your company. And you feel that in many areas, but hardest in your wallet. So, make choices. ‘No’ is also a word.
Misconception (3) I don’t need to use strict reports, checking my bank balance is enough
Measuring is knowing. That’s not just a saying, but a bitter reality. Your bank balance is obviously important, but it only provides limited information. It’s actually the final result of your company's performance. The development of these performances, however, remains invisible. Therefore, you cannot steer them, and processes are not manageable.
Misconception (4) Managing expectations in my team is a waste of time
In many organizations, there is an expectation gap between the boardroom and the work floor. Therefore, in just as many organizations, there is a lot of potential for improvement. Delivering top performances requires a top team with highly developed team intuition. Managing expectations is a very important aspect of this.
Misconception (5) Our company doesn't need a strategy because we are small
Even if you have few employees, you have a better chance of success if you follow a strategy. And following a strategy, focus is again hugely important. But to follow a strategy, you must first ensure that you have one.
Unfortunately, many entrepreneurs lack the knowledge and skills to proactively address the mentioned misconceptions. So, these are great starting points for implementing SMB governance in practice!