SME non-executive directors: having one and being one

The objective of the study reported here was to ascertain the impact on small and medium-sized enterprise (SME) owner-managers of simulating having and being a non-executive director (NED) within the GOLD programme at Lancaster University, the purpose of which is to help owner-managers of SMEs to become better strategic leaders of their companies. Three research approaches were used: (a) participant observation in each of the 20 businesses; (b) interviewing owner-managers; and (c) a review of materials and transcripts generated from Board meetings. Participants engaging in a higher education institution (HEI)-generated network with high levels of trust had an opportunity to behave in a different way; and owners acquired operational and strategic experience of having and being an NED. The initial results indicate that this experience results in greater strategic focus. The engagement of an HEI with SMEs through innovative processes drawn from larger organizations accelerates the creation of trust and social capital, allowing ways of working that might otherwise be dismissed.