SME Advantages Article

I've been a serial entrepreneur for fifteen years. It's an unbreakable habit. My career prior to working in start-ups was shortened by my dislike of bosses with large egos doing all they can to impress others with their successes. Most entrepreneurs are optimists – no pessimist would take on the risks that an entrepreneur does. But it has always puzzled me that when my entrepreneur friends and I get together, we seem to complain about all the hurdles we have to jump over that the big companies don't. Why do we seem to enjoy talking about negatives so much?

The answer isn't that we enjoy being negative. Entrepreneurs like to talk about problems we have because finding out how others have solved them is the best way for each of us to figure out how to solve our own. This is the ultimate display of optimism: believing that we'll overcome the most overwhelming of problems.

Sometimes we take pride in overcoming more obstacles than our friends have. It seems that here in China that obstacles really mean "red tape." There is so much red tape that I sometimes wonder if there are bureaucrats sitting somewhere coming up with more ways to add read tape to the existing systems.

But aside from the unavoidable red-tape that we all must deal with practically every day, the most pervasive headache we have is with staff. This also seems to be a problem endemic to China. As an SME owner, I see far more staff turnover than I ever did in Hong Kong or the US.

How do we find good staff, how do we motivate them, and how do we keep them? Answers to these questions are not as interesting, but are far more important than the converse issue of how to get rid of the dead wood.

It is said that people leave a job because of a bad manager they can't get out from under. But people choose to go to work for a company because of its reputation. Since larger companies have significant PR budgets, smaller companies are at a distinct disadvantage with regard to convincing good staff to begin working with them.

When I meet with potential hires, not only do I try to find out what makes them tick so that I can decide if I want to make a job offer, but I also include a sales pitch for working in a small company. I'm not sure, but I assume that many of the staff who apply to work for my company are coming to us because they couldn't figure out how to get hired by a larger, more well-known organization with prominent branding.

So what do I say when I find someone who it seems could eventually turn into an asset for my company? You probably already have a sales pitch for new staff, but through many conversations with my entrepreneur friends, I have come up with the following suggestions. I hope the ideas below will help other entrepreneurs in convincing high potential hires to come work for them.

At a large company, you will be one of hundreds or thousands of staff. While this means that it will be easier to make friends, the larger the company, the narrower your work focus. When we work in a very narrow area, the work itself can quickly become boring or even stagnating. The work that is done and the methods for getting it done will probably only be used at that specific company. So if and when you switch companies, in most cases your experience will not be easily transferable to the new job.

Large companies usually have a greater number of opportunities to manage staff, and this is an important factor in career management. Keep in mind that there are also far more contenders for these few management positions at larger companies. Small companies have greater opportunities to learn how to manage projects as well as people.

As a percentage of the total talent pool at a large company, an employee is much smaller than he or she would be at a smaller company. This means that all other things being equal, individual staff at smaller companies are more valuable than they would be in a larger company. If you're relatively more valuable to your company, they will probably invest more in you, they will probably care more about you, and they will probably listen closer to what you have to say. Larger companies will do their best to present this caring image, but it's just impossible for them to appreciate the benefits that each and every staff member brings. Smaller companies are quicker to appreciate and recognize motivated and productive staff. Smaller companies will also find it easier to find out who isn't productive. If you care about recognition for good work, and most people do, staff generally feel more appreciated at a smaller company.

This appreciation has an extra benefit. Everyone wants and expects a degree of special consideration when it comes to personal issues. Large companies have policies designed to prevent staff from taking advantage of the company. Because small companies don't have such policies, they can be more flexible with the personal situations of staff members than large companies will. Small companies realize that this is an easy benefit to give staff, so most small companies will be flexible with staff when it comes to personal issues.

Large companies have large divisions of labor. While working in a highly specialized function can make one feel more like an expert, it's not a good career move in the long term. When starting a career, it's important to demonstrate an ability to deal with details, and to accomplish specific goals related to specific areas. But as we progress through our careers, we need to broaden our perspective so that we can see the "big picture" that CEOs so often talk about. Due to the competition at larger companies, opportunities to demonstrate and gain big picture experience are few and far between. Small company staff quickly gain the benefit of seeing how different areas of a business all leverage off each other. Not only does the diversity of work one does in a small company make for a more interesting job, it also gives staff the chance to see how different parts all work together to create a product, or deliver a service. Because there are fewer staff, smaller companies give people more of a chance to learn to coordinate with other functional areas.

Small companies focus on competing with other small companies in their niche industry. Large companies usually operate in mature industries where there are few competitors. People are naturally competitive. When this avenue for competitiveness is cut off, the result is substantial competition within the company for the limited rewards and opportunities available. Large companies expect staff to pay their dues and work "in the ranks" for a while. Small companies direct the competitive nature of staff outside the company rather than keeping it bottled up. Small companies expect staff to work hard, but they will be much quicker to promote those who have merit and produce.

Finally, the larger the company you work for, the further away you are from the leaders of the company. It's always great when the CEO asks your opinion, and then listens and finally acts on it. Staff will be hard pressed to have this impact at a large company.

Just as I finished drafting this article, one of my best performers came up and asked me to sign a letter of recommendation for him. He's decided he's ready for another job – probably with a huge company. He's certainly ended his stay with my company with a far more useful range of skills to begin his next job than he would have if he had worked at MNC Inc. I know this because I read and signed his pre-written recommendation letter. I guess it's time yet again to take my own advice on giving SME pep-talks.

The next quality job candidate who comes into your office who seems to be wavering between a big company and a small one, I hope you can work the following ideas into your conversation.

• Skills gained at a small company are easily transferable to other jobs.
• Small companies provide a greater number of opportunities to learn.
• Small companies are quicker to appreciate and recognize performance.
• Small companies are able and willing to be flexible with personal issues.
• Small companies give staff a better chance to learn big picture thinking.
• Small companies emphasize cooperation, not competition among staff.
• At a small company, you will actually be listened to by the CEO.