Supporting SMEs through change

New Zealand is a nation of small businesses. The SME sector is a vital part of our economy and society, employing 42 per cent of the workforce.

Many SMEs are too small to afford a board. Some struggle to find professional advice when they run into difficulties or need to expand.

Being able to access an outside perspective was crucial to the survival of Nelson-based GK Events Hire. Owners Gareth and Kim Rosser took on a mentor at the end of 2019. Their aim was to try to better understand the mechanics of their business. Their aim was to try to better understand the mechanics of their business.

When Covid-19-induced Alert Level 3 restrictions were announced, the cancellations came thick and fast. The need to evolve the business at pace was critical so ideas were passed among the three until they identified an opportunity.

The business had vehicles used to transport event equipment. They pivoted to add freight services to their business offerings. Starting small, they expanded rapidly as demand increased for goods to be delivered to homes. GK Freight became the growth aspect of their operation and has been fully booked since 2021.

The mentoring relationship has continued as they thrive on the ever-changing nature of challenges that entrepreneurs face.

Professional directors are well placed to provide expertise to SME owners, who work hard to maintain their businesses but don’t always have the knowledge or experience to navigate through difficult economic times, or take advantage of opportunities that arise.

Change is the only constant. It’s as much as a piece of advice as it is a warning.

Those that can read the winds of change are rewarded and those that can’t often get left behind.

One of the most memorable examples was the fall of the once mighty Kodak as it failed to recognise the rise of digital photography and saw its multiple years of global dominance fade into memory. It’s a striking example of what happens when you either don’t know or, worse still, ignore what’s happening around you and, ultimately, to you.

As the challenges of recovering from lockdowns become clear, and the threat of a recession looms large, mentors are in demand. Identifying potential threats to a business and turning them into opportunities is something a mentor can help support. Having an independent pair of eyes across business challenges has proven time and time again to deliver insight and value.

A mentor is a guide, an advocate, a sympathetic ear and a catalyst for change. Ultimately, they help shorten someone else’s learning curve in business. Imbued with immense trust, the mentor allows an individual to see the inner workings of a business with the stated intention of guiding them towards success.

Mentees and mentors are paired with each other through a matching process to ensure a good fit from the first instance. Catch-ups and meetings can be as regular or infrequent as both parties feel is required, and whether it is done in- person, or online. 

Founded in 1991, Business Mentors New Zealand is an independent not- for-profit organisation supporting business owners in advancing their business capability and capacity.

You can find more information at businessmentors.org.nz