A review of the paper “Succession and Innovation in Asia’s Small-and-Medium-Sized Enterprises”, edited by Hsi-Mei Chung (I-Shou University, Taiwan) and Kevin Au (Chinese University of Hong Kong), 2021., reveals the following about Advisory Boards in SMEs.
SMEs often face issues where they face growth challenges as a result of their inherent focus on creativity and innovation to actively serve their market niches. Frequently, SME leadership confine decision-making to what they are comfortable with, and have experience in.
Many SMEs have boards and leadership that are formed by a combination of investors, friends and relatives. While this works for the early stages of the organization’s development, it lacks the relevant resources when the organization needs growth or faces market upheavals, which may lead to anticipated opportunities slipping away.
Advisory Boards can, through understanding of the corporate leaders’ operating style, personality, technical energy and long-term potential from interaction, through discussion on real-world issues, deliver strategic growth value through advice that is independent and can broaden the leaders’ horizons, all without exerting any impact on the existing board structure.
Across ASEAN, SMEs make up 97% of businesses in the region[1].In Singapore, there are around 300,000 SMEs, contributing to nearly half of Singapore’s GDP and employing 70% of the total workforce[2]. Annie Koh and Esther Kong from the Singapore Management University identified Human Capital, Internationalization, Innovation and Financing as the four main challenges faced by Singapore’s SMEs.
Advisors can help companies’ leadership facing these challenges, leveraging their experience and proven frameworks. By working with leadership on strategic options, companies can develop strategies that allow their organizations to Step Up, Step Back, or Step Out.
—–
[1] Building SME Resilience in Asia, UNDP, Mar 6, 2024
[2] The Straits Times, Aug 1, 2024
