Identifying and Differentiating Key Employees from Owners and Other Employees in SMEs

Abstract

This research examines how to identify and differentiate key employees from small and medium-sized enterprises (SME) owners and other employees and how their characteristics influence firm success factors. Interviews are conducted with 14 matched pairs of entrepreneurs and key employees operating Canadian SMEs. The study develops a profile whereby the key employee typically (1) corresponds to the key success factors of the SME, (2) is willing to undertake a moderate amount of risk, and (3) differs in education and experience from the entrepreneur/owner. Although employees are important to firm strategy and culture, this is one of the first to examine key employees in small business.

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