Small businesses can grow profits by networking, research shows
Networking can help boost the performance of small businesses, with 50 per cent saying that it has helped them to increase profits, according to research from NatWest.
The research, which surveyed over 630 senior decision makers from small businesses, found that 70 per cent of businesses have secured new business through networking. However, 33 per cent said that they are struggling to form new connections.
The report found that networking is valuable to small businesses, with over 20 per cent spending up to £1,000 on making a new business contact.
Businesses were questioned about how they make fresh connections, with over 65 per cent being found to use traditional methods such as meeting new contacts via existing ones. Just 21 per cent said that they believe that digital platforms such as business social networking website LinkedIn are useful for networking.
The report suggests that networking can help small businesses to form new contacts and boost profits, and businesses are now being urged to consider using it in order for them to boost their growth in 2017.
Commenting on the research, NatWest Managing Director of Business and Private Banking, Marcelino Castrillo, said: “It’s clear that meeting the right partners and contacts can make all the difference to a business’ growth potential.”
He added that it is not always easy for smaller businesses to know how to meet the correct people to help grow their business, and not all entrepreneurs actively make this a priority.