How SMEs Can Deliver Value: Creating Growth in 2023

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Delivering Business Value

A thriving enterprise is often marked by robust and consistent revenue growth. However, achieving this feat has been challenging over the past 15 years. The global financial crisis significantly impacted corporate growth, leading to a dramatic decline, with the world’s largest companies experiencing only half the growth rate they did before.

To counteract these trends, SMEs need to adopt a holistic growth blueprint comprising the mindset to drive growth, the correct enablers and accounting services to support and facilitate growth, and a coherent set of growth initiatives to ensure focused efforts towards achieving business goals.

Easier Said Than Done

Sustaining healthy growth has been a daunting task. To help curb the decline of SME growth patterns, we have gathered several insights into how organisations can overcome common challenges.

The Ten Rules of Growth


Find the Winning Formula

Companies that generate higher returns can attract and deploy more capital, enabling them to grow faster and generate even higher returns. While some companies may prioritise growth over profits for a certain period, the more common and practical approach involves establishing a unique business model and scaling it effectively.


Keep Up With Trends

The adage “adapt or die” is more relevant than ever, as the acceleration of pre-COVID-19 trends creates a broader gap between corporate leaders and laggards. Companies that heed trends and expand in ways that maintain or increase their exposure to fast-growing, profitable segments typically generate additional percentage points of total shareholder returns.


Be a Leader in the Market

A business model that outpaces industry growth rates is a strong indicator of success. Capital markets reward companies with such models, regardless of whether they operate in a fast- or slow-growing industry. Moreover, businesses that successfully capture market share from competitors are more likely to surpass the growth expectations as leaders in the market, which reflects in their share price and leads to stronger returns.


Refine Your Core Goals

When devising a growth strategy, the initial focus needs to include understanding where the business can achieve growth. It is unlikely to achieve strong growth if the core isn’t thriving. Therefore, unlocking growth in the core should be a top priority.


Explore the Beyond

For enterprises experiencing rapid growth in their core businesses, venturing into new domains can strategically position their portfolios to stay ahead of emerging trends. Similarly, companies with sluggish core growth can leverage expansion into related sectors to counterbalance the slower progress in other aspects of their business.


Stronghold Your Advantages

Diversifying into adjacent segments that already offer an advantage has proved to be a profitable growth strategy for many SMEs. Companies that grow by increasing the similarity of their portfolios can expect an additional boost in their total shareholder return. Moreover, those expanding into new industries can anticipate further gains if the new industry is akin to their core business.


Champion Local Success

Industry only represents one facet of the “where to explore” conundrum – geography is equally significant! Just as it’s difficult to achieve overall growth if your core business is struggling, boosting your growth trajectory is improbable without conquering your local market.


Expand Globally

If you possess an adaptable competitive edge or are not experiencing the growth you desire from local markets, consider venturing into global markets. To excel in international expansion, possessing a distinct competitive advantage that can be applied across different regions is crucial. If you lack this advantage, your business may face challenges competing with local incumbents who have a deeper understanding of the regional context.


Acquire for Growth

Mergers and acquisitions can contribute significantly to revenue growth, with programmatic acquirers often outperforming their organically growing competition. Many SMEs with traditional models now utilise programmatic mergers and acquisitions to expand their operations.


Don't Fold to Pressure

Embracing the concept of “shrink to grow” can be a viable strategy for businesses. Management teams often face pressure to deliver consistent growth, and companies that achieve this tend to significantly outperform their peers.

By assisting you in incorporating these ten rules into your business, MMS Cloud Accounting’s tailored accounting services will be proven to meet the evolving needs of your business. Our team provides expert guidance, refined to your unique business goals, to help guide your SME on the path to success. Contact us for more information.