Correctively, SMEs' contribution to GDP is quite sizeable; they account for more than 40% of North America’s GDP and they create 2/3 of all new jobs.
Individually, SME’s owner is an isolated operator. He is expected to find solutions to questions which are solved by an army of specialists in bigger businesses. Questions vital to the business success are left unanswered:
- Is my pricing correct?
- What are my margins? What were my margins last month?
- When and how much should I borrow?
- I know I have to consistently save and build my wealth; which changes should I implement to save more and where should I invest?
- I draw money from the business for personal use; what is the right balance?
This is why SMEs rely on how much liquidity is available (cash and credit) instead of facts and metrics extracted from data to make strategic decisions.
Interestingly, the management fundamentals to manage any business are the same across the board; it is only the size which differentiates them; either you manage a one-person business, 10, 100…the management can’t stop thinking about operations, strategies, marketing, managing people and finances.
Could technologies (AI/Machine learning) help bridge this gap and usher SMEs into a Data-Driven Decision Making culture? That’s what Rukbe Tech Inc is aiming to solve.
Comments