The Role of Property in a Portfolio of Small to Medium Enterprises

Abstract

Previous published academic property research has tended to focus on the optimal allocation of real estate from the perspective of large institutions. Little attention however, has been given to mixed business portfolios of small to medium enterprises. This study seeks in some way to address this imbalance by examining the perceptions of entrepreneurs who own more than one distinct business at any given time. Although only having come to prominence in recent times, portfolio entrepreneurship appears to be more ubiquitous than previously thought. Using in-depth interviews, this paper explores the role of property within the portfolio of small and medium enterprises (SMEs) of 15 successful entrepreneurs. The results suggest that property or property-related businesses feature prominently in these portfolios. The types of property assets are diverse ranging from land holdings, farms and commercial premises. This investigation confirms that property decisions relate to business-related objectives such as finance investment and building space. In addition it suggests that property may be utilised to pursue more personal objectives. The importance and differing roles of property during the life cycle of the portfolio is also highlighted and further indicate that property plays a strategic role in business decisions and often dictates the direction of individual businesses and the portfolio as a whole.