How to stimulate growth in the SME sector
Its not just availability of credit which is vital – its CEO’s and management teams who can grow their businesses.
Too many executives only know how to cut costs and denegrate their business models to drain every last drop of profit: mainly at the expense of client relationships which dont see any improvements only worsening of customer service.
It is apparent that virtually every industry is paralysed by this non sensical drive for unsustainable growth of profits by cutting costs, level of staff and hoping the charge the same amount or more for worsening service. Well it’s got to stop.
Company’s and managers needs to appreciate that consumers will pay for good customer service, but when it gets more expensive and worsens, the client defections will increase.
There is a need to go back to basics and work out how to sustain the customer base and build in relationships which are going to survive for years.
Everyone jumped on the band wagon of “wanting to be like Goldman Sachs” – extreme profit and damaged client relationships. Goldman created the Greek situation – so they be part of the funding solution ? Oh dear is that too simple. When is someone going to tackle the oversized egos doing “God’s work”.