Read an article co-authored by Professor Christoph Loch, Dean of Cambridge Judge Business School, Professor Stelios Kavadias, Director of the CJBS Entrepreneurship Centre, and Hanadi Jabado, Executive Director of the CJBS Entrepreneurship Centre on 'the founder's limit' and the impact it can have on growth companies.
Economic growth and job creation are closely linked to the success of small- and medium-size enterprises (SMEs) in almost every economy, both developed and emerging. SMEs, however, struggle to be successful and grow; only the very few manage to turn themselves into growth companies with the potential to make a difference to their economy.
Two main reasons are typically cited for this struggle: one is a lack of access to capital, and the second is limited managerial skills to strategically lead a company as it becomes large and international. The two reasons are connected; SMEs are opaque to banks and investors (because they report less than very large companies), so the variability in managerial capabilities across companies causes risk for investors. This prompts them to be conservative in lending or investing.
Cambridge Judge Business School is determined to support SMEs in developing their management capabilities through the SME Growth Challenge; a programme designed to help SMEs develop their organisation's managerial skills, setting them up to grow.