| Press Release | |
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The rise of tomorrow's big spenders: why size in business doesn't matter |
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| Issued by: CRS Technologies | |
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[Johannesburg, 23 June 2015] -
James McKerrell, CEO of CRS Technologies SA "There are many markets and areas that reflect this � that show how smaller players are not only surviving, but are, in some instances, outdoing larger businesses," says McKerrell. "Another dynamic is that partnerships are beginning to emerge involving all sized operators, that small and large businesses are working together in a symbiotic arrangement." The arrangement is based on mutual benefit and equal opportunity. As McKerrell explains, smaller operators can obviously leverage the credibility, influence, resources and opportunities that come with big business association � it is, in most cases, a package deal. "Smaller businesses provide an input, either through manufacture or service or both, and an output in the form of sales, marketing and distribution function," the CRS leader continues. "When this partnership works, the opportunities to trade, exchange and be responsible and reliable is bi-directional," But another reality of the market is that these types of relationships take time to forge, to grow and to materialise into something that is transparent and sustainable. McKerrell says SMMEs need to be competitive, dynamic and service orientated and in pursuit of this, there is every possibility of larger organisations �leaning' too heavily in the relationship, applying unnecessary pressure. "Often cash flow comes into play in these spaces � big business determines payment terms and often stretches these, putting the SMME under huge pressure," he says. "A powerful ally can be detrimental to the SMME, fixed prices and hard payment terms can bury a business." It is for this reason that McKerrell stresses the importance of open dialogue to be clear regarding expectations and undertakings � in addition to the need to avoid relying too quickly and too much on several large operators or just one. This will ensure that both parties benefit from the relationship. While already large enterprises will benefit from exposure to the agility and flexibility normally inherent in smaller operators (and take advantage of the large base that smaller operators are operating from), the view of experts like McKerrell is that SMMEs can use transparent relationships with partners to grow and this equates to job creation and contribution to the economy. |
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