Small businesses need to adapt their models, research shows
Small businesses believe that they could fail within the next five years if they do not adapt their models, according to research from business software company Exact.
The research showed that despite 38 per cent of SMEs believing that they will go out of business if they do not adapt their models, only 2 per cent have taken action.
The report looked at how SMEs are dealing with the digitalisation movement and found that just 6 per cent are investing in new technology to keep up and retain market share.
Whilst only 2 per cent have taken action to keep up with market developments, over 50 per cent are now exploring new business models.
The research surveyed SMEs across the UK, Germany, France, Belgium, Spain, the Netherlands and the US and found that over 70 per cent of UK SMEs are planning to grow, compared to 90 per cent of businesses in France.
The areas in which UK SMEs are planning to focus on to boost their business were also identified, with 30 per cent focusing on online sales, 26 per cent partnerships and channel sales, and 27 per cent planning to hire new talent.
Commenting on the research, Exact Cloud Solutions UK General Manager Gavin Fell said: “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.”