The role of a Non-Executive Director ( NED ) in companies in the FTSE 350 and the public sector has long been appreciated and understood and it has generally been the preserve of the very well connected with significant executive Board experience in similar positions.
However, there is now a new and dynamic demand for a new type of NED. The dramatic increase in the number of SMEs in the UK economy has created an environment where there is now a huge demand for board level professionals who have real business experience, excellent contacts and networking skills and good corporate governance knowledge.
Small and medium-sized enterprises (SMEs) accounted for 99.9 per cent of all enterprises, 59.8 per cent of private sector employment and 49.0 per cent of private sector turnover.
Turnover in SMEs is estimated at £1,589 billion, £88 billion (5.8 per cent) higher than 2008’.
This growth in SMEs has been rapid and significant and this means the business owners have started and grown their businesses, often with Government assistance, but many are now experiencing the ‘growth pains’ or the effects of the economic downturn that they have not experienced before and probably do not have the complete skill set internally to successfully address. This then creates an environment where the SMEs need assistance but cannot afford to hire all the necessary skills and experience they will need to address all of the issues. Hence, the rise in demand of a NED.
An IoD approved NED, from NED Solutions Ltd., brings a new set of eyes, impartiality, a clarity of thought that is backed up by a knowledge of what works and what doesn’t work, a complex network of contacts and partners, a sound knowledge of corporate governance, especially the minefield of Director liabilities, and good interpersonal skills. This gives the SME management team a completely new set of skills and experiences to call upon, on a part time basis, at a fraction of the cost of recruiting new staff.
If you feel that your company is in need of a NED or would like further information please contact me, firstname.lastname@example.org
Source: In a study by the Department for Business Innovation and Skills, titled ‘Small and Medium-sized Enterprise (SME) Statistics for the UK and Regions 2009’.