Small but mighty: the SMEs powering the UK economy

Small and medium-sized businesses (SMEs) contribute massively to the UK economy, accounting for more than £2 trillion in turnover, new research has revealed.

Whilst SMEs only employ between one and 249 people, the analysis by the School of Marketing also revealed that SMEs employ 44 per cent of the workforce throughout the UK.

However, small businesses are not without their challenges, and with costs rising across the UK, it is more important than ever for SMEs to maintain this momentum by carefully consulting their business strategy.

So, what key areas should your business focus on?

Services

Regardless of the industry that you are in, it is vital to refer to your business plan and monitor whether your services are meeting your customers’ needs.

By using tools such as SWOT analysis, you can identify where your business is performing well, as well as where your opportunities to improve are.

If there is a gap in the market to provide a new service, the decision to expand your services should not be taken lightly.

Some aspects to consider include whether you would need to hire new staff or retrain staff to provide specialist services (with the cost of this factored in), along with if the expansion of your services would align with your business’s values.

Employee retention

Despite the figures indicating that SMEs employ a large proportion of the workforce, employee retention is an issue that many have been battling.

The ‘Great Resignation’ has seen many workplaces facing staff shortages, with employees revaluating their career aspirations.

If employee retention is an issue that your business faces, consider asking your staff for feedback and suggestions for how their satisfaction can be improved.

Tackling this can not only improve customer service, but it will also save you valuable resources that go into hiring and training new staff.

Need advice on your business strategy? Contact us.