Do Small and Medium Sized Businesses Lack Long-Term Vision?

no vision

Came across a report today that many business owners in the UK are driven by short-term priorities like selling the company to make money and do not pay enough attention to longer-term strategic goals, according to research by the Economist Intelligence Unit for Ernst & Young.

  • As many as 85% of business owners in the UK plan to accelerate their divestment plan over the next two years.
  • Of the total, 32% of UK corporations are in the process of, or are planning to divest in the next two years.

More than two-thirds of respondents admit that the main reason  to sell is short-term financial gain, and this in turn is often driven by the need to offload debt.

Got me wondering if this is also true in the US and elsewhere. Do so many small and medium sized business owners worry about the need to offload debt as their primary concern?

vision ?

One Response

  1. Paul Cronin says:

    Interesting question, my answer is yes. Of course, most small business are in fact jobs with tax-reduction benefits. If they can sell the business at all, paying off credit lines and personal guarantees, is an easier way to live. Seriously, one of the reason most small retailers liquidated at the owner’s retirement, is that they aren’t great businesses, but can deliver a good job for the owner who maybe “unemployable”.

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