SMEs in Britain will close if they do not adapt in 5 years

posted by 5 years ago in News

Over one-third of SMEs within Britain are being warned that if they do not follow procedures to change their business models then their business will shut down over the next five years.

With all that in mind, why have only 2% of businesses began making changes so that their enterprise is adapted with the market developments?

The 2016 ‘SME Barometer Research’ (commissioned by Exact) has found that 64% of all SMEs within the UK are facing competition from new digitally adapted businesses in their sectors. However just 6% are actually investing in the technology they need to stay in business and follow the ‘digitalisation movement.’

General Manager of Exact Cloud Solutions UK, Gavin Fell comments;

“It’s great to see that there’s such a positive outlook among SMEs, but it’s clear that in order to deliver on those ambitions businesses need to adapt to the times. Digitalisation is going to be key to ensuring you are not only efficient but, remain competitive in today’s highly challenging environment.”

It was also found that 73% of SMEs in the UK are planning to grow. In France, 90% of businesses have started to adapt, whilst 56% are now exploring brand new business models which is shared with their European and USA counterparts.

Throughout the UK SMEs are venturing onto online sales (30%) some are looking into new partnerships and channel sales (26%) and some are hiring (27%) in order to give their business an uplift! 39% USA are putting their faith into online sales whereas 31% of businesses in Germany are putting their odds on introducing new partnership agreements.

CEO of Exact, Erik Van der Meijden comments;

“The use of technology to deepen business insight means that the wider SME economy is entering a new period of rapid growth and efficiency.

“As customer demands become ever more stringent, we are seeing entrepreneurial businesses taking advantage of digitalisation to broaden their service offerings.

“Exact provides ambitious SMEs with the technology and services they need to grow beyond their limits. As a result, companies are becoming increasingly agile, adapting to customer demands and market fluctuations in real time.”