Globally, small and medium-sized businesses account for about 9 out of 10 of all companies and HALF of all jobs.
Yet compared to larger corporates and multinationals, SMEs often face more obstacles when it comes to funding, the relative cost of dealing with red tape and access to vital markets.
Supporting SMEs is absolutely critical for driving growth, not just in the UK, but around the world…
✔ Solving specific problems
One of the key benefits of SMEs is their ability to address very particular challenges and plug gaps in the market. This problem solving is even more important in times of economic uncertainty and downturns.
✔ Focusing on niches
Due to size and resources, small and medium-sized businesses are more likely to zoom in on meeting the demands of niche market segments. The ability to focus on a specific market and to develop innovative products and services is perhaps the main strength of SMEs.
✔ Risk-taking
Larger enterprises are not always comfortable with taking risks or making decisions quickly. SMEs are more able to quickly and easily adapt to changes in the market. Such agility can be a real source of strength and capitalise on opportunities well before others can get into first gear.
✔ Digital evolution
Given the rapid growth of digital technologies, there’s no doubt that SMEs are playing a key role in the digital economy. Transforming the way that businesses operate at scale is critical for economic growth and survival.
✔ Sustainability
More important than ever, small businesses are often more sustainability-minded than larger businesses. Evidence suggests that they are more likely to use recycled materials, implement sustainable practices in their manufacturing processes and use renewable energy sources.
Data: World Bank