Change reaches SMEs and family businesses last.

 

It starts with the corporations that have the resources to effect it, and moves to the bottom of the pyramid where startups experiment with it to catapult themselves into the big leagues.

 

But why aren’t SMEs, especially the ones that are family-owned able to effect change?

 

Let’s take AI as an example. With numerous applications that can lead to growth, efficiency, and drive management decisions, it is a no-brainer that AI is a strong tool for family businesses. But the key factor here isn’t knowledge or affordability. It is:

 

Buy-in: With an inter-generational chain of command, these businesses can’t get enough buy-in for the unknown. Persuasion is tedious and requires past-evidence rather than future prospects.

 

Bandwidth: Who wants to de-focus on what makes money today, only to shoot in the dark for what may drive growth? Prioritising the adoption of new technologies is difficult when the same resources that are keeping the ship stable are expected to be reassigned to a ‘side project’.

 

Pushback: Family businesses see extra-ordinary pushback from legacy employees who barely want to get out of their comfort zone. The appetite to learn, let only implement is minimal. And this invariably pushes the management’s ambitions back, for who wants to risk losing their most senior-employees.

 

Patience: Even if one were to be able to drive this change, it could take time to see results. In this case, to see the basic benefits of using AI for your marketing needs may also take months to show results in engagement and/or cost savings. When the clock is ticking, short-term results or the lack of it overshadow longer-term benefits.

 

I have utmost respect for those that run these SMEs and successfully navigate these challenges to drive change and adopt the latest technologies.

 

At Milagro Universe, we have been trying our best to stay updated, but we have a lot to catch up on. Starting with simple ERPs, automated reports and even something as basic as an organized communication structure on WhatsApp. We are years if not decades behind – but we will get there.

 

#familybusiness