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Why is SME the toughest nut to crack, harder than consumer or enterprise? May 26, 2013

Posted by Bernard Lunn in Uncategorized.

Why is SME the toughest nut to crack, harder than consumer or enterprise?

The market serving SME (Small Medium Enterprise) is:

A. Big

B. Hard

C. Underserved – cos of B – so its a big opportunity.

Very few companies have cracked this. Those that have point the way to what might work.

Why is SME so hard? SME suffers from Middle Child syndrome, neither the big, older first born enterprise nor the cute, young baby of the family consumer.

I am convinced that:

1. Up From Consumer is better than Down from Enterprise. The SME decision makers will take as long and be as demanding as enterprise decision makers for a fraction of the revenue. Sell a great consumer product eg iPhone or Google Docs and adoption will spread organically ie cheaply within SMEs. Cost of sale kills most attempts to scale down from enterprise.

2. Winning over developers is key – think Microsoft in their glory days.

3. The innovation and growth maybe more in the Rest not the West – think M-Pesa serving millions of really small businesses with mobile banking.



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