According to the latest MYOB survey SME start-ups are using trial and error as the main method to learn how to run their business
The latest MYOB SME Snapshot reveals three key findings:
● SMEs find trial-and-error to be the most effective tool when starting out
● Most SMEs are unmoved by the change in Prime Minister
● 80Employment flexibility is the biggest selling point in attracting talent to SMEs
SME start-ups focusing on trial and error
According to the survey trial and error is the No.1 method for gaining business skills in the start-up phase. The monthly survey by leading cloud-accounting provider, MYOB, quizzes more than 400 of their SME customers about issues affecting their businesses.
MYOB CTO, Simon Raik-Allen, says that 38% of the SMEs surveyed trial and error provided them with the best learnings in how to run their new business. Other important methods of working out how to get on the right track are getting advice from accountants and financial advisors – 32% – and from professional networks – also 32%.
‘ Start-ups are basically learning on the job, and tapping professionals around them for advice. When you combine this with our last SME Snapshot finding, that showed that 78% of SMEs think that you don’t need a degree to run a business, we can see a real opportunity emerging to provide practical training for entrepreneurial types,’ says Mr. Raik-Allen.
Has the change in PM affected SMEs?
The Snapshot asked SMEs if the change in Prime Minister in mid-September would affect the way they operate.
45% thought the change in PM would have no impact at all, probably reflecting the warm reception the ‘SME package’ delivered under the previous leadership’s Federal Budget. 35 % thought Prime Minister Turnbull taking over has a positive impact on their perception of the government’s support for SMEs, while just 5% thought that impact would be negative.
Attracting talent and the SME working culture
The survey looked at how SMEs compete with bigger companies when attracting talented staff. 38% of respondents said that employment flexibility is the key seller in attracting valuable talent, while 21% claimed that it is the culture that SMEs provide that most appeals to potential candidates.
Mr Raik-Allen suggests this reveals that ‘today’s small-business owners are appealing on the personal front – offering a great place to work – rather than on the financial front – focusing on salary packages. At a time when skilled workers are hard to find, this shows that bringing a bit of heart to the equation can inspire loyalty and win out over the big guys.’
He says, ‘SMEs do flexibility really well; we know it’s a major motivator in going out on your own. Making this part of your offer to employees is likely to give you the inside running in attracting quality talent.’
