Promoting business linkages is initiating a learning process. One shortcoming of many business linkages is that nobody tries to learn how the other side works. Large corporations are well-established, have formal procedures and a working culture that values rules, hierarchies and formal reporting. Entrepreneurs of small firms have a ‘way of life’ that should be understood and respected. Entrepreneurs juggle several projects at a time, need to achieve their goals and are constantly short of resources in an environment where everyone pursues selfish goals.
Unfortunately, support to small firms is often tied to a supply-side culture (‘I want you to be like me’). This approach hosts the risk that it creates a divide between informal small firm economy and corporate bureaucratic culture (Allan Gibb).
The management of a small firm is often called inadequate just because it is not formalised enough and focuses on problem-solving rather than reporting lines. But it is unfair to ignore the positive impact owners of small firms have on the economy and it is better to engage in a learning process on both sides.
The supply to a large market is a development opportunity for small firms that needs to be matched with a more formalised approach to planning and monitoring activities. This requires the owner-manager to obtain a good understanding of the process as a whole and then adapt company practice and exploit the opportunities.
Corporate and formalised business partners must accommodate the entrepreneur, set clear expectations and avoid a partnership that is stiffling the small business.