Fundamentals

For Small to Medium Businesses (SMBs), the business landscape is often perceived as a relentless pursuit of profit maximization. However, a more nuanced and increasingly vital approach is emerging ● the Stakeholder-Centric SMB Model. At its core, this model shifts the focus from solely shareholder value to encompass the needs and interests of all stakeholders connected to the business. Understanding this fundamental shift is crucial for SMBs aiming for sustainable growth Meaning ● Sustainable SMB growth is balanced expansion, mitigating risks, valuing stakeholders, and leveraging automation for long-term resilience and positive impact. and long-term success in today’s interconnected world.

What are Stakeholders?

Stakeholders are any individuals or groups who can affect or be affected by the SMB’s actions, objectives, and policies. This extends beyond just shareholders or owners to include a much wider circle. For an SMB, typical stakeholders include:

• Customers ● The lifeblood of any SMB, customers purchase products or services and generate revenue.
• Employees ● The workforce that drives operations, innovation, and customer service.
• Suppliers ● Partners who provide raw materials, goods, or services necessary for the SMB’s operations.
• Community ● The local area where the SMB operates, encompassing residents, local organizations, and the environment.
• Investors/Owners ● Those who provide capital and expect a return on their investment.
• Government/Regulators ● Entities that set the legal and regulatory framework within which the SMB operates.

Traditionally, SMBs, especially in their early stages, might prioritize investors and owners, focusing intensely on profitability to secure funding and establish themselves. However, the Stakeholder-Centric Model Meaning ● SMB success hinges on nurturing stakeholder relationships for co-created value and sustainable growth. argues for a more balanced approach, recognizing that the well-being and engagement of all stakeholders are interconnected and contribute to long-term business health.

Why Stakeholder-Centricity for SMBs?

The shift towards stakeholder-centricity is not merely a matter of ethical consideration; it’s a pragmatic business strategy, particularly relevant for SMBs. Here’s why:

1. Enhanced Reputation and Brand Loyalty ● SMBs that are perceived as caring for their customers, employees, and community build stronger brand loyalty. Positive word-of-mouth, crucial for SMB growth, is fueled by satisfied stakeholders.
2. Improved Employee Engagement Meaning ● Employee Engagement in SMBs is the strategic commitment of employees' energies towards business goals, fostering growth and competitive advantage. and Retention ● Employees who feel valued and respected are more engaged, productive, and less likely to leave. For SMBs, where talent acquisition can be challenging, retaining skilled employees is vital.
3. Stronger Supplier Relationships ● Fair and collaborative relationships with suppliers ensure a reliable supply chain and potentially better terms, benefiting the SMB’s operational efficiency and cost management.
4. Positive Community Relations and Social License to Operate ● SMBs that contribute positively to their local community are more likely to receive community support and avoid potential conflicts or regulatory hurdles. This ‘social license’ is increasingly important for long-term sustainability.
5. Attracting Investors and Funding ● Increasingly, investors, especially younger generations and impact investors, are looking beyond pure financial returns. They are interested in businesses that demonstrate social responsibility and sustainable practices. A stakeholder-centric approach Meaning ● Prioritizing all invested parties for SMB success, fostering shared value and long-term growth. can make an SMB more attractive to these investors.

For an SMB just starting out, implementing a fully developed stakeholder-centric model might seem daunting. However, even small steps can make a significant difference. For example, focusing on excellent customer service, creating a positive work environment, and sourcing locally where possible are all stakeholder-centric actions that can be integrated into early-stage SMB operations.

Initial Steps for SMBs to Embrace Stakeholder-Centricity

Adopting a stakeholder-centric approach doesn’t require a complete overhaul of an SMB’s operations overnight. It’s about integrating stakeholder considerations into decision-making processes gradually. Here are some initial steps:

• Identify Key Stakeholders ● Map out all relevant stakeholders for your SMB. Consider who is directly and indirectly affected by your business activities.
• Understand Stakeholder Needs and Expectations ● Engage with stakeholders through surveys, feedback forms, or informal conversations to understand their priorities and concerns.
• Prioritize Stakeholder Engagement ● Based on resource availability, prioritize which stakeholder groups to engage with first. Focus on those most critical to your SMB’s immediate success and long-term sustainability.
• Integrate Stakeholder Considerations into Decision-Making ● When making business decisions, consider the potential impact on different stakeholder groups. Ask questions like ● “How will this decision affect our customers?”, “What will be the impact on our employees?”, “Will this be viewed positively by the local community?”.
• Communicate Transparently ● Be open and honest with stakeholders about your SMB’s goals, challenges, and performance. Transparency builds trust and strengthens relationships.

In essence, the fundamental understanding of the Stakeholder-Centric SMB Meaning ● Stakeholder-Centric SMB prioritizes all stakeholders' needs, fostering mutual value and sustainable growth through personalized engagement and automation. Model is about recognizing that business success is not a zero-sum game. By considering and addressing the needs of all stakeholders, SMBs can create a more resilient, sustainable, and ultimately more profitable business in the long run. It’s a shift from a narrow, short-term focus to a broader, long-term perspective that aligns with the evolving expectations of customers, employees, and society as a whole.

The Stakeholder-Centric SMB Model fundamentally shifts the business focus from solely maximizing shareholder value to encompassing the needs and interests of all stakeholders, fostering long-term sustainability Meaning ● Long-Term Sustainability, in the realm of SMB growth, automation, and implementation, signifies the ability of a business to maintain its operations, profitability, and positive impact over an extended period. and resilience.

Intermediate

Building upon the fundamental understanding of the Stakeholder-Centric SMB Model, we now delve into the intermediate aspects, focusing on practical implementation and strategic advantages for SMBs. While the core concept is straightforward, effectively integrating stakeholder-centricity into SMB operations requires a more nuanced approach, considering resource constraints and the dynamic nature of SMB environments. This section explores how SMBs can move beyond basic awareness to actively manage stakeholder relationships and leverage them for growth and competitive advantage.

Operationalizing Stakeholder Engagement in SMBs

Moving from theory to practice, operationalizing stakeholder engagement Meaning ● Stakeholder engagement is the continuous process of building relationships with interested parties to co-create value and ensure SMB success. in SMBs involves establishing processes and systems that facilitate ongoing communication, feedback, and collaboration. This is not about creating elaborate bureaucratic structures, but rather about embedding stakeholder considerations into the daily operations of the SMB in a practical and scalable manner.

Developing a Stakeholder Engagement Framework

A structured framework helps SMBs systematically manage stakeholder relationships. This framework should include:

1. Stakeholder Identification and Mapping ● Beyond the basic list, this involves categorizing stakeholders based on their influence, interest, and proximity to the SMB. A power-interest grid, for example, can help prioritize stakeholders for engagement efforts. For instance, High-Power, High-Interest Stakeholders like major customers or key investors require close management, while Low-Power, Low-Interest Stakeholders might only need to be monitored.
2. Engagement Strategies for Different Stakeholder Groups ● Recognizing that different stakeholders have different needs and communication preferences is crucial. Customers might prefer social media engagement and online surveys, while employees might value regular team meetings and feedback sessions. Tailoring Communication Channels and Engagement Methods to each stakeholder group maximizes effectiveness.
3. Feedback Mechanisms and Data Collection ● Establishing clear channels for stakeholders to provide feedback is essential. This could include customer feedback Meaning ● Customer Feedback, within the landscape of SMBs, represents the vital information conduit channeling insights, opinions, and reactions from customers pertaining to products, services, or the overall brand experience; it is strategically used to inform and refine business decisions related to growth, automation initiatives, and operational implementations. forms, employee surveys, supplier performance reviews, and community forums. Collecting and Analyzing Stakeholder Feedback Meaning ● Stakeholder feedback, in the context of SMB growth initiatives, concerns the systematic collection and evaluation of insights from individuals or groups who have a vested interest in the business. data provides valuable insights for improvement and decision-making.
4. Integration into Business Processes ● Stakeholder considerations should be integrated into key business processes, such as product development, marketing, customer service, and human resources. For example, Customer Feedback should Directly Inform Product Improvements, and employee feedback should shape HR policies.
5. Measurement and Reporting ● Defining key performance indicators (KPIs) related to stakeholder satisfaction and engagement allows SMBs to track progress and demonstrate the impact of their stakeholder-centric initiatives. Regular Reporting on Stakeholder Performance to internal teams and, where appropriate, to external stakeholders, ensures accountability and transparency.

Leveraging Automation for Stakeholder Management

Automation can play a significant role in streamlining stakeholder engagement, especially for resource-constrained SMBs. Tools and technologies can help manage communication, collect feedback, and analyze data more efficiently.

• Customer Relationship Management (CRM) Systems ● CRMs are invaluable for managing customer interactions, tracking customer data, and automating customer communication. For SMBs, even basic CRM systems Meaning ● CRM Systems, in the context of SMB growth, serve as a centralized platform to manage customer interactions and data throughout the customer lifecycle; this boosts SMB capabilities. can significantly improve customer service Meaning ● Customer service, within the context of SMB growth, involves providing assistance and support to customers before, during, and after a purchase, a vital function for business survival. and personalize interactions. Automated Email Marketing Campaigns, for example, can keep customers informed and engaged.
• Employee Engagement Platforms ● Platforms designed for employee surveys, feedback, and internal communication can help SMBs gauge employee sentiment, identify areas for improvement, and facilitate two-way communication. Automated Pulse Surveys can provide regular insights into employee morale and engagement levels.
• Social Media Management Tools ● Social media is a critical channel for engaging with customers and the wider community. Tools that automate social media posting, monitoring, and engagement can save time and improve efficiency. Automated Social Listening can help SMBs track brand mentions and identify customer concerns.
• Data Analytics Tools ● Analyzing stakeholder feedback data manually can be time-consuming. Data analytics Meaning ● Data Analytics, in the realm of SMB growth, represents the strategic practice of examining raw business information to discover trends, patterns, and valuable insights. tools can automate the process of analyzing survey responses, social media sentiment, and other forms of stakeholder feedback, providing actionable insights. Automated Sentiment Analysis can quickly identify trends in customer opinions.

Stakeholder-Centricity as a Competitive Advantage for SMBs

Beyond ethical considerations, a stakeholder-centric approach can be a powerful source of competitive advantage Meaning ● SMB Competitive Advantage: Ecosystem-embedded, hyper-personalized value, sustained by strategic automation, ensuring resilience & impact. for SMBs. In a market increasingly driven by values and relationships, SMBs that prioritize stakeholders can differentiate themselves and build stronger, more resilient businesses.

Building Trust and Reputation

In today’s transparent world, reputation is paramount. SMBs that are known for treating their stakeholders fairly and ethically build trust, which translates into customer loyalty, employee retention, and positive community relations. Trust is a Valuable Asset that can weather economic downturns and competitive pressures.

Driving Innovation and Customer-Centricity

Engaging with stakeholders, particularly customers and employees, can be a rich source of innovation. Customer feedback provides direct insights into unmet needs and desired product improvements. Employee ideas, often stemming from frontline experience, can lead to process improvements and new service offerings. Stakeholder Input Fuels Customer-Centric Innovation, ensuring that SMBs are developing products and services that truly meet market demands.

Attracting and Retaining Talent

In a competitive labor market, SMBs need to offer more than just competitive salaries. Employees, especially younger generations, are increasingly seeking purpose-driven work and employers who value their well-being. A stakeholder-centric approach, which prioritizes employee well-being Meaning ● Employee Well-being in SMBs is a strategic asset, driving growth and resilience through healthy, happy, and engaged employees. and creates a positive work environment, can be a significant advantage in attracting and retaining top talent. A Strong Employer Brand, built on stakeholder-centric values, becomes a powerful recruitment tool.

Securing Long-Term Sustainability and Resilience

SMBs that operate with a long-term stakeholder perspective are more resilient to external shocks and market fluctuations. Strong stakeholder relationships provide a buffer during challenging times. For example, loyal customers are more likely to stick with an SMB during an economic downturn, and engaged employees are more likely to go the extra mile to help the business succeed. Stakeholder-Centricity Builds Resilience and ensures long-term sustainability.

In conclusion, the intermediate stage of understanding the Stakeholder-Centric SMB Model involves operationalizing stakeholder engagement through structured frameworks and leveraging automation tools. Furthermore, it’s about recognizing and actively harnessing the competitive advantages that stakeholder-centricity offers, including building trust, driving innovation, attracting talent, and securing long-term sustainability. For SMBs seeking to thrive in the modern business environment, embracing a stakeholder-centric approach is not just a responsible choice, but a strategically sound one.

Operationalizing stakeholder engagement in SMBs Meaning ● Stakeholder engagement in small and medium-sized businesses (SMBs) represents a structured approach to involving individuals, groups, or organizations impacted by or able to influence a business's actions, especially regarding growth strategies, automation initiatives, and project implementation. involves creating structured frameworks, leveraging automation, and recognizing stakeholder-centricity as a key competitive advantage for long-term success.

Advanced

The Stakeholder-Centric SMB Model, viewed through an advanced lens, transcends simplistic definitions of corporate social responsibility or basic customer service. It represents a fundamental paradigm shift in how SMBs conceptualize value creation and organizational purpose. From an advanced perspective, the Stakeholder-Centric SMB Model can be rigorously defined as a strategic management framework wherein an SMB consciously and proactively integrates the diverse needs, expectations, and interests of its stakeholders into its core business strategy, operational processes, and decision-making, with the explicit aim of achieving sustainable, long-term value creation Meaning ● Long-Term Value Creation in the SMB context signifies strategically building a durable competitive advantage and enhanced profitability extending beyond immediate gains, incorporating considerations for automation and scalable implementation. for all stakeholders, not solely shareholders. This definition moves beyond the instrumental view of stakeholders as mere means to shareholder wealth maximization, embracing a more intrinsic and ethical perspective.

Redefining the Stakeholder-Centric SMB Model ● An Advanced Perspective

Drawing upon reputable business research and data, particularly from scholarly databases like Google Scholar, we can refine the advanced understanding of the Stakeholder-Centric SMB Model. Analyzing diverse perspectives, multi-cultural business aspects, and cross-sectorial influences, we arrive at a nuanced and robust definition that acknowledges the complexities of the SMB landscape.

Deconstructing the Advanced Definition

Let’s dissect the advanced definition to fully grasp its implications for SMBs:

• Strategic Management Framework ● This emphasizes that stakeholder-centricity is not a peripheral add-on but a core element of the SMB’s overall strategy. It’s not just about philanthropy or public relations; it’s about fundamentally aligning business goals with stakeholder interests. Strategic Integration is key to its effectiveness.
• Consciously and Proactively Integrates ● This highlights the intentional and deliberate nature of stakeholder engagement. It’s not a passive or reactive approach but a proactive effort to identify, understand, and address stakeholder needs. Proactive Engagement differentiates it from reactive CSR initiatives.
• Diverse Needs, Expectations, and Interests ● Acknowledges the heterogeneity of stakeholder groups and their potentially conflicting interests. Effective stakeholder management requires navigating these complexities and finding mutually beneficial solutions. Managing Stakeholder Diversity is a critical challenge.
• Core Business Strategy, Operational Processes, and Decision-Making ● Underscores the pervasive integration of stakeholder considerations across all aspects of the SMB. It’s not limited to specific departments or initiatives but permeates the entire organizational fabric. Holistic Integration is essential for systemic change.
• Sustainable, Long-Term Value Creation for All Stakeholders ● Shifts the focus from short-term profit maximization to long-term, sustainable value creation Meaning ● Sustainable Value Creation for SMBs: Building long-term business success by integrating environmental, social, and economic value, ensuring a positive impact on all stakeholders. for a broader range of stakeholders. This includes financial, social, and environmental value. Multi-Dimensional Value Creation is the ultimate goal.
• Not Solely Shareholders ● Explicitly rejects the shareholder primacy model and embraces a multi-fiduciary approach, where the SMB has responsibilities to all stakeholders, not just owners. Stakeholder Inclusivity is a defining characteristic.

Cross-Sectorial Business Influences ● The Impact of Technology and Globalization

Analyzing cross-sectorial business influences, particularly the pervasive impact of technology and globalization, reveals critical dimensions of the Stakeholder-Centric SMB Model. These forces are reshaping stakeholder expectations and creating both challenges and opportunities for SMBs.

1. Technology and Transparency ● The digital age has ushered in unprecedented levels of transparency. Social media, online reviews, and instant communication platforms empower stakeholders and amplify their voices. SMBs are now under greater scrutiny than ever before. Technological Transparency necessitates ethical and responsible business practices.
2. Globalization and Stakeholder Diversity ● Globalization expands the reach of SMBs, creating opportunities to access new markets and talent pools. However, it also increases stakeholder diversity, requiring SMBs to navigate different cultural norms, ethical standards, and regulatory environments. Global Stakeholder Management demands cultural sensitivity and adaptability.
3. Technology and Automation of Stakeholder Engagement ● As discussed in the intermediate section, technology offers powerful tools for automating stakeholder engagement. AI-powered chatbots, sophisticated CRM systems, and data analytics platforms enable SMBs to manage stakeholder relationships more efficiently and effectively. Automated Stakeholder Management enhances scalability and responsiveness.
4. Globalization and Supply Chain Stakeholders ● Global supply chains introduce a complex web of stakeholders, often spanning multiple countries and cultures. SMBs need to be mindful of ethical sourcing, labor standards, and environmental impacts throughout their supply chains. Supply Chain Stakeholder Responsibility is increasingly scrutinized by consumers and regulators.
5. Technology and Data Privacy ● The increasing reliance on technology for stakeholder engagement also raises concerns about data privacy and security. SMBs must ensure they are handling stakeholder data responsibly and ethically, complying with data protection regulations. Stakeholder Data Privacy is a critical ethical and legal consideration.

In-Depth Business Analysis ● Focusing on Employee Stakeholders in the Stakeholder-Centric SMB Model

For an in-depth business analysis, let’s focus on one crucial stakeholder group ● employees. Within the Stakeholder-Centric SMB Model, employees are not merely resources to be managed but are recognized as integral partners in the SMB’s success. This perspective has profound implications for SMB human resource management, organizational culture, and overall business performance.

The Evolving Role of Employees in SMBs

The traditional view of employees as primarily driven by financial compensation is increasingly outdated. Modern employees, particularly in knowledge-based industries and younger generations, seek purpose, autonomy, growth opportunities, and a positive work environment. For SMBs to attract and retain top talent, they must adapt to these evolving expectations. Employee Value Proposition extends beyond salary and benefits.

Stakeholder-Centric HR Practices for SMBs

Adopting a stakeholder-centric approach to HR requires SMBs to rethink traditional HR practices and implement policies that prioritize employee well-being, engagement, and development.

• Fair Compensation and Benefits ● While not the sole motivator, fair compensation Meaning ● Fair compensation within the small and medium-sized business (SMB) environment represents the total value an employee receives in exchange for their work, considering factors beyond just monetary wages. and benefits remain essential. SMBs should strive to offer competitive packages that reflect the local market and the value employees bring. Competitive Compensation is a foundational element.
• Work-Life Balance and Flexibility ● Increasingly, employees value work-life balance and flexibility. SMBs that offer flexible work arrangements, remote work options, and generous vacation policies can attract and retain employees who prioritize these aspects. Flexible Work Arrangements enhance employee well-being.
• Learning and Development Opportunities ● Employees seek opportunities for professional growth and development. SMBs should invest in training programs, mentorship opportunities, and career development pathways to help employees enhance their skills and advance their careers. Investing in Employee Development fosters loyalty and skills.
• Participative Decision-Making and Empowerment ● Engaging employees in decision-making processes and empowering them to take ownership of their work fosters a sense of belonging and purpose. SMBs can implement employee suggestion programs, team-based projects, and decentralized decision-making structures. Employee Empowerment boosts engagement and innovation.
• Positive and Inclusive Work Environment ● Creating a positive and inclusive work environment where employees feel valued, respected, and supported is crucial. SMBs should foster a culture of open communication, collaboration, and mutual respect, and actively promote diversity and inclusion. Inclusive Workplace Culture enhances morale and productivity.

Business Outcomes for SMBs ● Employee Stakeholder Focus

Focusing on employee stakeholders within the Stakeholder-Centric SMB Model yields significant positive business outcomes for SMBs.

1. Increased Employee Productivity and Efficiency ● Engaged and motivated employees are more productive and efficient. Stakeholder-centric HR practices, such as employee empowerment Meaning ● Employee empowerment in SMBs is strategically architecting employee autonomy and integrating automation to maximize individual contribution and business agility. and development opportunities, directly contribute to increased productivity. Employee Engagement Drives Productivity Gains.
2. Reduced Employee Turnover and Recruitment Costs ● High employee turnover is costly for SMBs, both in terms of direct recruitment expenses and lost productivity. Stakeholder-centric HR practices, such as fair compensation, work-life balance, and positive work environment, significantly reduce employee turnover. Lower Turnover Reduces Costs and Improves Stability.
3. Enhanced Innovation and Creativity ● Employees who feel valued and empowered are more likely to contribute innovative ideas and solutions. Stakeholder-centric SMBs foster a culture of innovation by encouraging employee input and recognizing their contributions. Employee-Driven Innovation fuels competitive advantage.
4. Improved Customer Service and Satisfaction ● Happy and engaged employees provide better customer service. Employees who feel valued by their employer are more likely to go the extra mile for customers. Employee Satisfaction Translates to Customer Satisfaction.
5. Stronger Employer Brand and Talent Attraction ● SMBs that are known for treating their employees well build a strong employer brand, making them more attractive to prospective employees. In a competitive labor market, a positive employer brand is a significant advantage in attracting top talent. Employer Brand Attracts Top Talent.

In conclusion, the advanced understanding of the Stakeholder-Centric SMB Model moves beyond superficial interpretations to embrace a profound paradigm shift in SMB management. By consciously and proactively integrating stakeholder interests into their core strategy, SMBs can achieve sustainable, long-term value creation for all stakeholders. Focusing on employee stakeholders, as a specific example, demonstrates the tangible business benefits of stakeholder-centric HR practices, including increased productivity, reduced turnover, enhanced innovation, improved customer service, and a stronger employer brand.

For SMBs aspiring to long-term success and resilience in a complex and interconnected world, embracing the Stakeholder-Centric Model is not just ethically sound but strategically imperative. This advanced perspective challenges the traditional shareholder-centric view, arguing that in the 21st century, stakeholder value maximization is the more robust and sustainable path to SMB prosperity.

From an advanced perspective, the Stakeholder-Centric SMB Model is a strategic framework for sustainable value creation, challenging shareholder primacy and emphasizing the intrinsic value of all stakeholders, particularly employees, for long-term SMB success.

Furthermore, the philosophical depth of the Stakeholder-Centric SMB Model can be explored through the lens of business ethics and moral philosophy. The model implicitly challenges the purely utilitarian view of business, where the sole purpose is to maximize profit for shareholders, regardless of the consequences for other stakeholders. Instead, it aligns more closely with deontological and virtue ethics perspectives, emphasizing the inherent moral obligations of businesses to all those affected by their actions. This philosophical grounding provides a deeper justification for the stakeholder-centric approach, moving beyond purely instrumental or pragmatic arguments to embrace a more ethically robust and humanistic vision of SMBs in society.

The exploration of epistemological questions within the Stakeholder-Centric SMB Model also reveals interesting insights. How do SMBs truly know and understand the needs and expectations of their diverse stakeholders? What are the limits of human understanding in grasping the complex interplay of stakeholder relationships? And how can SMBs leverage data and technology ethically and effectively to gain deeper knowledge of their stakeholders without compromising privacy or trust?

These epistemological considerations highlight the ongoing need for SMBs to develop sophisticated stakeholder intelligence capabilities and to continuously refine their understanding of the evolving stakeholder landscape. The pursuit of stakeholder knowledge is not a static endeavor but a dynamic and iterative process of learning, adaptation, and ethical reflection.

Finally, the Stakeholder-Centric SMB Model can be viewed through the transcendent theme of building lasting value. In a world increasingly characterized by short-termism and transactional relationships, SMBs that embrace a stakeholder-centric approach are investing in the creation of enduring value ● not just financial value, but also social, environmental, and human value. By fostering strong stakeholder relationships, building trust, and contributing positively to their communities, these SMBs are creating a legacy that extends far beyond immediate profits.

This transcendent perspective emphasizes the potential of SMBs to be not just economic engines, but also positive forces for social and environmental good, contributing to a more sustainable and equitable future for all. The Stakeholder-Centric SMB Model, therefore, is not just a business strategy; it is a pathway to building businesses that are both successful and meaningful, creating value that truly endures.

Table 1 ● Stakeholder Engagement Framework Meaning ● A structured approach for SMBs to build mutually beneficial relationships with all who impact or are impacted by their business activities. for SMBs

Table 2 ● Automation Tools for Stakeholder Management in SMBs

Table 3 ● Business Outcomes of Stakeholder-Centric Employee Focus for SMBs

Table 4 ● Contrasting Shareholder-Centric Vs. Stakeholder-Centric SMB Models