SMEs state thinking outside the box attributes to revenue

Business of Change Rethink & Grow report

The report surveyed 500 small businesses in the UK. The aim of the report is to encourage SMEs to rethink the capability of their business.

Over three-quarters of these businesses believe it is important to adapt their operations to remain competitive in the changing and challenging market.

SMEs also admitted they are guilty of not rethinking how they could approach their business differently (47%).

The report highlights ways SMEs believe they can endure in the current economic conditions. Things included – selling through online marketplaces, selling through social media, investing in digital platforms to improve customer experiences, and finding new markets abroad.

Some other ideas include keeping a closer eye on all outgoing expenses (34%), making more time to think differently about their business (31%) and improving all-around customer service (31%).

Business concerns for the rest of 2023

The impact of Covid-19 and the rise in the cost of living means businesses must deal with the implications these hold. 6 in 10 owners stated that their top priority was to survive in 2023.

More than half of the businesses surveyed admitted they are worried and concerned about business revenue and trade for the rest of 2023.

Other top concerns were having the ability to rethink their business potential if their operations and digital platforms were streamlined and made more efficient (59%), feeling overwhelmed by the number of different operational and financial systems needed to run their business (54%) and suffering more setbacks than initially anticipated when starting up their business (30%).

SME’s barriers to growth

The survey revealed that SME owners find the biggest barriers are trying to rethink new ways of working including worries about finding the right people to help enact new operations (22%), lack of funds to make investments (21%) and general self-doubt (20%).

Further findings from the report show that small businesses may limit themselves. Over a third (34%) say they still do not have a website for their business, 28% are yet to have their own social media channels and 47% do not sell their products and services on online global marketplaces. However, 70% said they are hopeful their business will reach its full potential.

Positives from the SME report

SMEs confirm the best ways consumers can boost small businesses include spreading good experiences through word of mouth (51%), leaving online reviews (48%) and sharing and engaging with small businesses via social media (42%).

Small businesses in big cities such as London and Manchester mention their high-quality products and services are the factors that have benefitted their business the most (43% and 54% respectively).

Overall SMEs said social media presence has helped businesses in other parts of the UK – with the highest proportion of SMEs in Portsmouth (50%), Aberdeen (40%), and Edinburgh (40%) saying a strong social media presence has benefitted their business.

Free HR advice for SMEs

Having your own business in this time of economic uncertainty can be tough for any business, even more so for small businesses. PayPal’s Business of Change Rethink & Grow report helps get a clearer picture of where employers are struggling the most.

HR and employment law aren’t always at the forefront of an employer’s mind when starting a business and many believe their business is too small or not established enough for these services. However, it can be very risky when you don’t have proper policies and procedures in place.

We provide free support if you’re an employer and need advice on HR and employment issues. We offer 24/7 assistance to guide you through the processes and procedures.

Please speak to one of our HR and employment law advisors free at 0800 144 4050 or fill in the form here to request a callback.