roundtable: economic recovery 75 Growth hindered by less


support for training Podger mentioned difficulties in financing training programmes. “The rug has been pulled from under many people’s feet because the opportunities for finding funding have disappeared. We are now looking at full-cost provision, rather than a subsidised service through the Government or other institutions.”


Frankly, if you can’t sell in those early days, then you don’t have a business. ” (He praised Bucks New University for its Apprentice Challenge scheme, which gives students a live experience of running their own business.)


“And sales is often the initial line of funding that sparks off a new business,” added Elliott.


Podger agreed, noting: “The professionalisation of sales is lacking. There is no structured approach to the preparation of this critical and crucial business skill. Many people in sales have never had the opportunity to develop their raw skillsets.”


The subtle balance of passion, sharing, childminding and


Sean Taylor


“Funding of training is important for business growth, but the current support is not the generous environment it once was.” Podger did highlight an exception – the Government’s Growth Accelerator for small businesses.


Lack of funding has provided one ironic benefit for his company. “It has always been a crowded market but many training providers, our competitors, have now left the space because without funding support they can’t make margins that justify their existence.”


Do SMEs understand all


the management arts? Podger: “We help SMEs understand the broad management environment because many will have operational or other commercial expertise that has led them to create a business, but they probably lack an understanding of other key areas. They may not be equipped to meet the needs of their future, and will have loose ends that cannot be tied up unless they bring in expertise from external sources.”


Elliot agreed: “Technical skills training often goes without saying, but SMEs also need to understand the complexities of managing rapid growth and all that entails, hence new programmes like Henley Business School’s Henley Accelerator programme for SMEs.”


Putting any available funds into management training could be the astute move, she suggested, since a better-managed business might then generate profits to channel into its own skills training. (Leadership & Management match-funding grants are still available from the Government.)


Edwards raised a note of caution. “Remember the essence of entrepreneurship is getting cracking, having a go and actually setting up a business. Training can sound tedious.


THE BUSINESS MAGAZINE – THAMES VALLEY – SEPTEMBER 2013


playing golf Singh-Barmi admitted he was now in his first career role as a professional manager. “I couldn’t have done this job a few years ago, because that same entrepreneurial spirit that drives a startup is a level of lunacy that you don’t need at the helm of a business once it begins to push forward. Because of that passion, it is often very hard for some entrepreneurs to relinquish their authority to a management team.”


Wills: “It is also often difficult for driven owner-managers to admit that there is something that they don’t know, and they need to hand things over to someone else. It’s a bit like a mother giving her baby to a childminder for the first time, or the first day at school.”


Taylor noted the need for a careful balance between entrepreneurial flair and management control in order for businesses to grow successfully. “Our growth has meant that in cultural terms we have probably been five different companies over the years, starting from one that took on anything to today’s much more regimented operation.”


Wills agreed: “Businesses are like a child. They have different needs at different stages. The trick for an owner-manager is not to be blinded by their passion, but to spot those stages and recognise what help they need.”


Smith pointed out that most entrepreneurs are either good sales people or have a ‘Wow’ idea or product that produces an initial


critical mass that gets the business started. “But then, how do they progress? It’s a bit like playing golf; it’s a test of how many bad shots you make. A growing business can’t afford to make too many bad decisions.”


Mentoring: Hearing the


voice of reason . . . Murray asked Elliott of VitalSix to talk about the importance of mentoring for SMEs.


“We are actually mentoring coaches and advisers ourselves, but as a young company, we work with outside mentors to provide the voice of reason that takes us out of the day- to-day scenario to understand, think ahead and plan.


“We are conscious of needing to take our own medicine, so we have an advisory team that regularly questions us as to why we are doing something or not. It’s very helpful to have somebody holding us to account.”


Chris Houston . . . and accepting the


voice of un-reason Nash mentioned businesses that are growing very well, but still need better financial control than they realise. “When it is recommended that they take on an interim FD, most accept it, but some entrepreneurs can almost take offence at the suggestion.”


As a non-executive director of several companies, Edwards had seen the flip side of entrepreneurial businesses hit hard by recession. “They have gone through the mill, and can get cautious and very scared that their business will go down. There, I have had to be the voice of un-reason, and remind them of their early entrepreneurial days when it was a case of ‘Let’s just do it'.”


Smith pointed out that Edwards had broader experience of business risk and probably less emotional linkage with the company, which enabled him to take a wiser, more balanced viewpoint.


Susan Elliott


Continued overleaf ... www.businessmag.co.uk


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