5 comprehensive strategies for innovative SMEs

Photo: David Flores

On many occasions, the impact of a micro business goes unnoticed, because we do not think about how much a small family business, a stationery store, a convenience store, a restaurant, a shoe store, a cafeteria, among others, contributes.

However, the number of this type of business is impressive and constitutes 96% of existing companies in the country, which employ 41% of Mexicans and generate 48% of GDP. For the most part, they correspond to businesses that are traditional and focused on shops and services; however, being a micro company does not prevent it from being able to innovate; in fact, some arise as a result of an innovative project.

An example of this is the Rennueva company, which was born from a technological development project for the recycling of expanded polystyrene, better known as Styrofoam. By developing the first technology in the country to be able to efficiently recycle Styrofoam, a way was sought to commercialize it and make the recycling of this material a reality. And for this, Rennueva became a MiPyme.

We must not confuse innovation with doing science or technology, it can be created in any aspect. And although we rarely think about innovating in the fields of the business model, distribution channels, the packaging concept, the market or logistics, there are different cases in which innovation has been made in this regard; for example Spotify, with its innovative distribution channel, or like the Spanish brand Ikea, with its packaging and the “Do It Yourself” market niche.

These companies have achieved success thanks to creative action plans, but above all that are integral to their growth and development. Being a microentrepreneur makes us have a broader vision to notice that despite having an innovative idea, bringing it to fruition contemplates different factors beyond technology, such as:

Human Capital: it is essential that the core team of a MiPyME be united, multidisciplinary and believe in the project, since when innovating, nobody knows how the market will react, and it may be necessary to quickly make adjustments to the entire structure of the company. It is advisable to surround yourself with experts and trained personnel in the critical areas of the company.

Governance: establishing a social organization in the company in order to plan in time and space before executing, becomes essential, since when going from entrepreneur to micro entrepreneur, a social division of labor has to be made.

Vision: establish, beyond the typical “mission, vision and objectives”, a 5-year growth map. Not financial projections or road maps, but an approach about where you want to be in the short, medium and long term, trying to be realistic with your desire.

Economic capital: a MiPyME can access funds from CONACyT, INADEM, access a loan, or if you are lucky, be surrounded by friends, believers and family who can support you with capital. But it never hurts to think about an investment round in exchange for shares.

Passion: Certainly you have to have faith in yourself and in the project, otherwise, at the first slip or adversity, the ship will sink. But how does faith come? Simple, doing what one loves. In the end, the key to success lies in the personal discipline of micro entrepreneurs to achieve their goals and achieve their dreams. * Héctor Ortiz is the General Director of Rennueva and Head of Design REPS-01, and can be followed at @garnaff

Source: http://il-latam.com/images/revista/331ebc_inbound-logistics-latam-112.pdf