It’s time to abolish the term ‘SME’

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John Cridland was speaking at the Advertising Association’s Leadership Summit and was responding to a report by the organisation which found only 30% of SMEs are spending money on advertising. “I’d love to abolish the phrase ‘SME’ because it’s fundamentally unhelpful,” he said. “We need better market segmentation. I think Ss are very different from Ms. In Ss, you have lifestyle businesses that don’t want to grow because they have the businesses they want and you have fast growing businesses. “Within the Ms, you have predominantly businesses that are growing and you have the so-called gazelles that resemble the sort of high tech businesses you see on the west coast of the United States and you have the steady growing, family owned, mittelstant companies that are closer to the German economic model. “They all have very different growth strategies, very different needs; for partners, for access to finance, for government support and very different needs for advertising. “Of course, the window cleaner business that’s going around knocking on doors needs to make much better use of advertising and the sausage manufacturer I took to China, who’s now selling sausages there, needs a much more sophisticated advertising campaign. “I think the next step with [the Advertising Association] report is to further segment that market because the asset classes have different needs.”

via It’s time to abolish the term ‘SME’.

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