Intellectual Capital encompasses most areas of an organisation. Although many activities are not labelled as either the pursuit of Intellectual Capital measurement or its realisation, they are integral to the understanding of this area. It is generally accepted that Intellectual Capital consists of Human Capital, Structural Capital and Relational Capital. The reported study unpicks through a qualitative investigation of the perception of Intellectual Capital by entrepreneurs in SME’s. The specific industrial context is the precision engineering industry in the United Kingdom. The study explores how useful entrepreneurs in this target population perceive Intellectual Capital to be to them, and highlights the value that Intellectual Capital exploitation adds to their organisations. The general context is one of financial insecurity and contraction of demand, coupled with increasing operational pressure from international competitors with lower cost structures. The general conclusion is that entrepreneurs who understand the principles of intellectual capital and its exploitation are better suited for the challenges of entrepreneurial pursuit in a recessionary period from the results the Sector of Operating Efficiency (SoOE) was identified.