ABCtech #164 20OCT14 Report The Missing M in SME – Why small businesses fail to grow

Missing ‘M’ In SME: Why Alberta’s Small Businesses Fail To Grow

ABCtech #164 20OCT14 Report – The Missing M in SME – Why small businesses fail to grow

“The Missing ‘M’ in SME – Why Alberta’s small businesses fail to grow” is ABCtech’s theme for

2014. The theme reminds me of a question Dan Hinchey asked me about 10 years ago. He was then President of MicroAge – an infoTech SME in Edmonton and now an Executive with IBM. The question: Why with all the extraordinary talent in Edmonton’s infoTech companies, hasn’t someone attempted their aggregation? Our 2014 theme reflects broad interest in associated small business issues that can hardly be ignored:

• High failure rate among start-ups across Canada (2 in 10 survive 5 years, 1-2 in 100 small businesses ever growing to become medium enterprises of more than 99 employees).
• High youth unemployment and rising income disparity between generations.
• Under-employment and out-migration of talent – including new PhDs.
• Low rates of entrepreneurship.
• Small “lifestyle” enterprises having no interest in growth or mergers with no succession plans.

All at a time when:

• Baby-boomers are retiring – many with time, capital, networks and knowledge to share.
• New technologies are emerging and converging that if anticipated, can be an opportunity and if not, VERY disruptive.
• Competition and market forces are ever-more demanding with emerging markets adding to the fray.
• Bigger may not be better as organizations restructure for increasing productivity, flexibility and innovation
• Banks are prospering, interest rates are historically low, and the economy is recovering.
• Public and private investors in advanced education and research are expecting more pay-back.
• Governments are aware of the need for more innovation, flexibility and a safety net to support a transition.

Preparing to pivot! In April to September 2014, ABCtech will be conducting panAlberta site

consultations to engage entrepreneurs and SMEs in a conversation about (1) why small businesses fail to grow; (2) why the lack of growth in Alberta may be viewed as a problem, and if a problem, who might do what to resolve it? Get engaged! You can help as a co-host by:

• Marketing: Distribute our survey and registration notice to SMEs and entrepreneurs.
• Locating: Securing a site, date (Tues or Thus) and time (7:30AM, 4:30PM or 7:30PM).
• Welcoming: Attend a 1.5-hour, 25 attendee workshop ($25 registration fee per attendee)
• Editing: The industry report will be released in November. Co-hosts will have early access to the draft for comment.

Let us know if you are interested as we have several co-host sites still available. Even better, consider a sponsorship or donation to help us cover costs. Your comments and ideas are welcome.

Perry Kinkaide, Founder & Past President

Pkinkaide@ABCtech.ca (780)990-5874c or 1-866-241-7535tf