The Muamalat Newsletter Vol. 1 2024

FEM eNewsletter | June 2024 50 The Illusion of Flexibility: Unmasking the Reality of SME Planning Challenges Richard Seow Mantissa College / Pole Paris Alternance (PPA) Business School SMEs with greater adaptability compared to their larger counterparts. Nevertheless, it is crucial to recognize that flexibility should not merely be the byproduct of a small or less complex corporate framework. Ideally, it should result from deliberate and effective corporate governance strategies. Larger corporations, too, can cultivate this kind of agility through meticulous planning and strategic organizational design. Thus, flexibility, when grounded in robust management practices, can significantly benefit firms of all sizes in managing the challenges presented by uncertain business environments. Flexibility in SMEs is often perceived as a strength, yet it can sometimes stem from less commendable origins such as insufficient planning or suboptimal management practices. Many SMEs experience a dearth of specialized skills and competencies within their teams, primarily relying on business owners to handle critical tasks. This reliance is compounded by the challenges SMEs One defining characteristic often observed in small and medium-sized enterprises (SMEs) is their inherent flexibility or agility, which enables them to adeptly navigate both the evolving market landscape and their routine operational demands (Miroshnychenko et al., 2021). This adaptability is frequently seen as a strategic advantage, particularly in times of uncertainty. However, it is important to note that while flexibility is crucial, it does not necessarily equate to good management practice. The flexibility observed in SMEs typically stems from their less hierarchical organizational structures and more streamlined decision- making processes (Anning-Dorson, 2021). There are fewer protocols in SMEs and many matters are overseen directly by the business owners. Additionally, the concentration of power within a smaller number of individuals, typically thebusiness owners, oftenenhances an SME’s ability to pivot quickly in response to environmental changes (Wong et al., 2018). These structural aspects naturally endow