Why SMEs Need Business Management Courses

This article was written by Richard McManus, Professor of Economics at Canterbury Christ Church University. 

Owners and managers are frequently responsible for sales, HR, finance, IT and strategy at the same time. As organisations grow and their complexity increases, informal approaches based on intuition and long hours alone become less effective. 

In the UK, SMEs make up over 99% of all businesses and account for around 60% of employment and about half of private-sector turnover. When SMEs succeed, they support local employment, innovation and community prosperity. Yet many SME leaders have had limited opportunities for formal development in business management or leadership, despite evidence that these capabilities are linked to productivity and growth. 

Well-designed business management or leadership courses address this gap. They provide structured time, frameworks, and expert support. This moves leaders from short-term problem-solving towards a clear, realistic plan for sustainable growth, in the form of a highly practical action plan built and refined across the duration of the course.  

For a small business, management is not about bureaucracy. It concerns how the organisation sets direction, makes decisions about priorities and investment, organises people and operations, and provides strategic clarity through communication, motivation and culture. 

As a business grows from a micro-enterprise to a larger SME, the level of complexity increases: there are more customers, more data, more employees, more or deeper supplier relationships, more financial considerations and more activities to coordinate and more exposure to risk. Effective management and crucially, effective leadership is what converts this complexity into a source of competitive advantage rather than a source of instability. 

UK and international studies consistently show that stronger leadership and management practices – including clear target-setting, regular performance monitoring and systematic staff development – are associated with higher productivity and profitability in SMEs. Leadership and management courses give leaders the time and structure to review their current practices, test alternatives, and design improved approaches that fit the realities of their own business. 

A good business management course or business leadership programme is not simply an academic exercise; it is intended to improve how the business performs in practice. Four of the key benefits are:  

1. Strategy 

One of the most important benefits is sharper strategy and growth planning. Participants learn how to analyse their markets, identify where the business can compete most effectively and set realistic (and measurable) growth objectives.  

 Many programmes guide leaders to develop a tailored growth or action plan over several weeks, so that they leave not just with innovative ideas but with a concrete roadmap for implementation that can be shared with all employees, particularly senior employees. 

2. Communication 

A key benefit is improved leadership and communication. As businesses expand, the management role of the business owner shifts to a leadership role, from doing most tasks personally to enabling and supporting others to perform at an important level. Courses address topics such as delegation, coaching, feedback and managing change, helping leaders to build a more engaged and resilient workforce. 

3. Financial skills 

Stronger financial literacy is another important outcome. Understanding cash flow, margins, pricing and investment decisions is critical when scaling an SME. 

 Management education helps owners and managers interpret financial information with confidence. They can then use it to support better strategic and operational decisions, which helps them to have better conversations with their financial/accounting advisors. 

4. The ability to scale  

Finally, management courses support the development of systems and operations that can scale beyond dependency on key team members. Through case discussions and analysis of business operating models and practical tools, participants examine how to streamline processes, introduce appropriate digital solutions, and put in place more effective routines and structures that help reduce dependence on any single individual.

The 90% government-funded Help to Grow: Management Course is a good example of an SME-focused leadership programme. It combines online sessions, in-person workshops, peer learning and one-to-one mentoring, totalling more than 50 hours of structured learning and support.  

 Early evidence from this course shows that participants report higher confidence, clearer strategic direction. In some cases, measurable improvements in revenue and profit can be seen after business leaders implement the action plan that they have developed during the course. 

Good management training is as much about developing the leader as it is about learning how to use proven business frameworks. Part-time management courses create time away from the day-to-day pressures so that leaders can work on the business. This allows SME leaders to juggle the ongoing operational demands. 

They also bring together a peer group of SME leaders from different sectors, who are facing similar challenges around recruitment and employee engagement, pricing, digital transformation and growth, providing both support and constructive challenge.  

Research on SME leadership finds that improvements in people management and leadership capability are among the most effective ways to enhance productivity and resilience. Through structured self-assessment and reflection, case studies and mentoring, leaders learn how to articulate a clear vision, communicate it consistently and translate it into day-to-day behaviours across their organisation. 

Over time, this continuous learning builds confidence in making significant decisions, to seize opportunities, such as developing new or existing markets, investing in technologies or redesigning roles and responsibilities. 

Many SME leaders recognise the value of management development but are uncertain where to start. The volume of information for business – including business courses online and in-person offers – can appear overwhelming.  

Begin the process of finding information by looking for programmes that are specifically designed for SMEs, then ask important questions such as: 

• Does the programme enable you to come away with an actionable plan for your business? 

• Is there mentoring support included? 

• What opportunities are there to make new business contacts in the SME community 

• What time commitment away from the business is needed? 

When considering management courses or business courses online, it is helpful to focus on programmes that are explicitly designed for SMEs (defined as business with between 5 and 249 employees).  

Government and local growth-hub websites, business representative bodies and accredited business schools are all useful starting points for identifying options that fit around the demands of running a business, including blended and online courses that minimise time away from day-to-day operations. 

Small businesses are central to the UK economy, providing most private-sector jobs and a large share of turnover. The quality of their management and leadership, therefore, has direct implications for local communities and national economic performance. 

Participating in a business management course is about making a small but valuable space to stand back from the business to create a clearer strategy, stronger capabilities and a realistic action plan for growth. It provides a structured way to reassess current practice, plan future development and build the leadership capacity required for the next stage of the organisation’s journey. 

Whether through an intensive 12-week programme with mentoring or a series of shorter manager courses delivered online, the priority is to select a practical option that is focused on genuine business challenges. Leaders can apply the knowledge acquired to build an actionable business strategy and develop the confidence to lead its delivery. 

You can find out more about the Help to Grow: Management Course here.