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Benefits of graduate careers in SMEs

It’s easy to believe that there are only 100 companies in the world if you are an undergraduate student. Graduate Schemes are so incredibly popular with large corporations increasingly driven to secure the talents of tomorrow’s leaders. However the idea of a career within an SME is becoming more and more mainstream.

So what is an SME? Well SME stands for Small & Medium Enterprise and encapsulates any company which turns over less than €50m and employs less than 250 staff. The term is not sector specific and it’s worth remembering in general most companies start off as SMEs.

SMEs are the lifeblood of the British economy. According to the Federation of Small Business website in 2013:

SMEs accounted for 99.9 per cent of all private sector businesses in the UK, 59.3 per cent of private sector employment and 48.1 per cent of private sector turnover SMEs employed 14.4 million people and had a combined turnover of £1,600 billion

The importance of SMEs in our economy is therefore huge and there is a significant amount of support out there for growing businesses.

What is different though about working for an SME? Well the differences start at the recruitment process.

Imagine if you wanted to apply for a job at HSBC or Tesco or PWC. The first person you’ll meet is most likely an HR representative or recruitment resourcer. In an SME there is every chance that the first person you will meet is the owner of the company. The recruitment process itself, rather than various interviews, assessments and psychometric tests will more likely be a CV, Cover letter and one to one interview.

Then we come to the induction. On a corporate graduate scheme an induction may include a week-long induction at Head Office with other graduate trainees which delivers training on various systems, presentations from a variety of departments, networking with senior board members and various opportunities for Q & A. An induction in an SME might include, “Here are the fire exits, there is the staff room with a kettle and you’ll get an hour for lunch at 12:30pm.”

Into the job itself. Well during a Graduate Scheme you may get access to various stints in different departments with access to mentors and support networks. In an SME the relationships with staff would generally be less formal and development is usually on the job. That said you’d usually find that responsibility is something you will be given or earn much quicker, your success and development is likely to be in your own hands. Furthermore, particularly in forward thinking SMEs, the sense or shared ownership and shared goals can make success within a team much greater, and if you’re fortunate to have a fair boss rewards may be more likely to be shared. Informal team bonding such as after-work drinks can also be a frequent benefit.

Reactivity on decision making in a large business can often be a challenge. In fact trying to get a decision on something can be like trying to turn an oil tanker as decisions have to go through various channels and committees. However, in an SME, when your boss is literally on the other side of the office decisions can be made in a matter of minutes. This can also be helpful if you are a little short of money for the rent this month.

Not all SMEs are the same, but neither are all big employers. The challenges are completely different in both types of organisation but equally rewarding. Whilst studying its certainly worth seeking opportunities to get work experience in an SME to help form a balanced view when making career decisions.

Daniel Knowles is a SME Project Manager at Lancaster University and a Careers & Employability Coach.

This was posted in Bdaily's Members' News section by Lancaster ICV .