The UK may feel optimistic regarding the growing economy but there are still many businesses that are finding the economy challenging and are still affected by the recovery of the recession. Mike Smith of Virgin Media Business says both government and industry need to continue working together to help the struggling smaller businesses.
8% of small businesses turned to the government services when they had business problems.
Smallbusiness.co.uk conducted a study on 1,000 companies in the UK, 24% of the employees find the current economic situation the biggest barrier to growth. When discussing the greatest challenges with the company founders, the start up problems including getting the right business advice, second understanding taxes and VAT.
In another study by Albion Ventures said that, one in five small and medium sized businesses have said cash flow has become a major challenge to growth. Cash flow is said to be one of the biggest threats to small businesses.
Research shows that many small businesses are failing to see the benefits and growth potential in modern digital technology. Only 20% of small businesses think digital training is a key area for investment in the next five years.
Smith agrees that digital marketing along with backing from the top can help small businesses grow faster and will be good for the whole economy, he says: “Technology has an unrivalled power to help propel businesses forward but people need the skills to be able to use it.”
SME’s should be the fuel of our economy powered by simple, flexible technology, but we feel that industry and the government need to look at ways they can give more support and direct assistance, says Smith of Virgin Media
The UK’s digital economy works out as 8% of GDP, which is the highest out of any other G20 nation, but if our small businesses don’t start using technology better, we will be in risk of losing this competitive advantage.
If you’re having difficulties in your business then it could be a time to look to sell your business. Contact our team on 0800 987 0813 to discuss the potential sale of your business or arrange for a free valuation.