Earlier this year SAP conducted some research into the growth strategies of UK SMEs. Whilst 95% of the businesses surveyed cited growth as their number one goal at the moment, two different approaches emerged from the survey. There were those companies who are forging ahead aggressively, aiming to grow their businesses ahead of industry norms (accelerators); and those who are more concerned with maintaining pace with industry competitors (stabilisers).
It was great to hear that growth was a priority on nearly everyone’s agenda, but a lot has happened over the course of the summer which has led me to wonder how the divide looks now.
The UK has been the centre of attention worldwide this year, firstly with the Queen’s Diamond Jubilee in May, closely followed by the London 2012 Olympic and Paralympic Games. Britain’s ability to put on ‘the greatest show on earth’ has certainly boosted national morale and ‘inspired a generation’, but where do SMEs fit into the picture?
Despite headlines continuing to project the ‘doom and gloom’ story of Britain’s recessionary status, in my opinion, this summer has seen a number of positive trends and initiatives which have real potential to boost SME growth. Just this week, a number of Britain’s high street banks have launched new schemes to boost lending to SMEs. RBS’s manufacturing fund was announced a few days ago, offering cheaper borrowing rates and favours for manufacturing. In addition, Lloyds Banking Group has just kicked-off the ‘Lloyds funding for Lending’ scheme which offers a 1% reduction in the interest rate for new business loans and hire purchase.
Team this with the fact that Vince Cable has recently announced plans for a new government-underwritten investment bank – designed specifically to provide loans to SMEs – and the situation really doesn’t look so bleak. With so many great initiatives being launched in the UK, and the high level of young business talent out there across Britain, now is the time for UK SMEs to have the confidence to challenge the norm and push for their businesses to grow rapidly against industry trends.
Whether you’re a start-up in manufacturing, retail, IT (or any other industry sector, for that matter) there is an increasing chance that there will be a support scheme out there tailored to your specific requirements. Moreover, there are a number of forums, communities and resources available, such as the government’s Business Link, to help you tackle any other issues you may come across in the path of business growth.
So whether you’re a ‘stabiliser’ or an ‘accelerator’, I hope SMEs will feel ambitious and positive moving forward, inspired to by the numerous examples of success we have witnessed across the UK this summer. And with so many schemes out there to complement and support the diverse mix of businesses across the UK, SMEs should move forward with a renewed sense of determination and drive to grow their businesses which are at the heart of the UK’s economic recovery.
John Antunes, Director of SME & Channels, at SAP UKI