Mind the Gap: Overcoming Challenges in Bridging Corporate and Entrepreneurial Worlds

In my previous articles, I've explored the potential for corporate skills to benefit entrepreneurs, how companies can support the broader business ecosystem, and the personal growth opportunities these initiatives offer.

Now, I want to explore the gaps and challenges we face in making this vision a reality.

First off, let's talk about awareness. In my experience, there's a real lack of it when it comes to accessing corporate expertise for entrepreneurs and SMEs. I mean, if you're starting a business, you might not even know that you could benefit from the kind of experience that corporate professionals have, even if you have come from a corporate background. And on the flip side, those of us in the corporate world might not realise how valuable our skills could be to a fledgling business.

The NED Role

I’ve been reflecting on the role of Non-Executive Directors (NEDs) and the processes through which they are appointed.

In the past, NED appointments often emerged from an exclusive network of recommendations and personal connections—the so-called ‘old boys’ club.’ However, there has been a significant shift towards greater transparency, inclusivity, and the pursuit of diverse perspectives. As a result, non-executives are now being recruited from a much broader spectrum of backgrounds and experiences.

For SMEs, the selection process for NEDs typically involves interviews conducted by existing board members, encompassing both executives and non-executives. In contrast, larger corporations frequently utilise a dedicated nomination committee, comprising members from the main board, to oversee appointments.

While your skills and professional experience will undoubtedly be a focus of the interview, the process is equally about the board assessing your personality, leadership approach, and interpersonal style. Prospective NEDs are expected to showcase their ability to provide constructive challenge, think creatively, and communicate with clarity and fairness. Equally, this is your opportunity to ask questions and determine whether the board and organisation align with your aspirations and values.

Should you be successful, the terms of your appointment will vary depending on the company you join. Since the implementation of changes to the Off-Payroll Regulations (commonly referred to as IR35) on 6 April 2021, many NED roles have transitioned from contractor arrangements to direct employment. Additionally, it is increasingly common for organisations to set maximum term limits for non-executive directors to encourage fresh perspectives and maintain cognitive diversity.

There are no formal qualifications required to become a NED. The emphasis is firmly on the expertise, experience, and insight you can bring to the board’s strategic oversight. However, the recruitment process often remains highly structured and formal.

While this level of rigour is understandable for appointments in large corporations, I wonder whether such an approach is always the best fit for SMEs and startups—the types of businesses we’ve been discussing throughout this series. Is this formalised process truly the most effective means of introducing the critical skills and knowledge these organisations require?

I wonder if we need to explore alternative models for knowledge-sharing and support. Something that's more flexible, more accessible, and more focused on the needs of entrepreneurs and small businesses.

New Ideas

One idea that's been bouncing around in my head is the concept of a 'skills marketplace'. Imagine a platform where corporate professionals could offer their expertise, and entrepreneurs could seek out the specific skills they need. It wouldn't be about long-term board positions or equity stakes. Instead, it would be about targeted support for specific challenges or growth stages.

Obviously, setting up something like this isn't straightforward. There are all sorts of questions we'd need to address. How do we ensure quality? How do we match skills to needs effectively? How do we make it worth the time and effort for corporate professionals to participate?

And then there's the question of motivation. Why would corporate professionals want to get involved? Sure, there's the feel-good factor of giving back, but is that enough? I think we need to dig deeper and find ways to make these initiatives truly beneficial for everyone involved.

One potential answer lies in the idea of reciprocal learning. Yes, entrepreneurs would benefit from corporate expertise. But I believe corporate professionals have just as much to gain. The energy, the innovation, the agility of startup culture - these are things that could inject new life into our corporate mindsets.

Another challenge we need to address is the potential for conflict of interest. How do we ensure that corporate professionals can share their knowledge freely without compromising their own companies' interests? This is where we might need to get creative with confidentiality agreements and ethical guidelines.

Measuring Value

We also need to think about sustainability. One-off mentoring sessions or sporadic advice-giving is all well and good, but real impact comes from sustained support. How do we create structures that allow for ongoing relationships between corporate professionals and entrepreneurs, without it becoming a burden on either side?

And let's not forget about measurement. If we're going to make a case for these kinds of initiatives, we need to be able to demonstrate their value. But how do we measure the impact of knowledge transfer? How do we quantify the value of mentorship or advice?

I believe we need to start thinking outside the box. Maybe what we need is a new kind of organisation altogether. Something that sits between corporate, the voluntary sector, and the SME world. Not just another NED or consultancy outfit, but a platform that facilitates real knowledge transfer and mutual growth.

New Opportunities

The more I think about it, the more I'm convinced that there's a gap here waiting to be filled. An opportunity to create something that could transform the way knowledge flows between the corporate and entrepreneurial worlds and I would love to hear your own thoughts on this.?

In my final article in this series, we'll explore some concrete ideas for how we might start to address these challenges. I'll share my thoughts on coaching, mentoring, and knowledge transfer models that could help bridge the gap. Because at the end of the day, that's what this is all about - finding ways to share knowledge, support growth, and create value for everyone involved.

Who is Lee?

Lee Kilminster is Commercial Director for RS’ EMEA Distributor Partners & Export Solutions. In his personal time you’ll see him walking to the sounds of the High Performance Podcast, hanging out with his 11 year old son and enjoying a whisky (but perhaps not all at the same time).