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New analysis by productiveness platform, Slack, and enterprise productiveness charity, Be the Enterprise, reveals the interior and exterior obstacles to progress UK small and medium companies face in 2024. With rising issues across the UK turning into a ‘Stagnation Nation’, the analysis uncovers the hopes and fears of UK SMEs – in addition to ‘progress gateways’ that can allow them to thrive.
Even rising UK SMEs worry stagnation
Regardless of a difficult financial setting, almost two thirds (63%) of SMEs report rising in 2023. Nevertheless, greater than half (53%) of these rising companies worry stagnation over the following 12 months. This worry factors to an absence of long-term confidence – even from profitable SMEs – of their capacity to thrive, and the determine rises additional to 58% amongst UK SMEs as a complete.
UK companies discover probably the most difficult stage of progress is once they attain greater than 25 staff and transcend £100,000 income. Motion is required to maintain progress past this – and firms level to a spread of inside and exterior circumstances that will assist them obtain it.
Cultivating an setting that nurtures SME progress
Inflation and the price of dwelling is highlighted as the largest barrier to progress within the information – chosen by over half (55%). This was adopted by rivals (31%), and the continuing influence of Brexit (26%) – showcasing the big selection of SME issues.
Turning to options that will assist the UK change into a greater place for rising SMEs, decision-makers highlighted each coverage and cultural shifts:
- Tax cuts – 46%
- Sturdy coaching/training/upskilling programmes – 43%
- Higher work life steadiness – 40%
These present potential focus areas for each companies themselves and wider stakeholders to drive progress, for instance, by addressing the demand for funding in abilities that can assist the SME neighborhood to thrive. Nevertheless, the analysis additionally reveals areas during which SMEs can take inside motion to stimulate progress.
From collaboration to AI: SME progress gateways within the UK
SMEs additionally recognized a number of inside points that stymie progress – and these are the place savvy leaders can take motion to construct their very own progress gateways.
Poor administration was the highest inside barrier to progress, highlighted by over 4 in ten (45%). This was adopted by:
- Poor communication and lack of collaboration – 38%
- Lack of motivation – 36%
- Worker burnout – 33%
These obstacles are seemingly related: poor administration and communication fuels an absence of motivation and worker burnout. In distinction, bolstering collaboration and communication abilities, and deploying instruments that assist higher engagement, can enhance progress prospects.
In actual fact, the relation between communication and progress is evident: 88% of organisations that fee their communication as ‘wonderful’ felt optimistic about progress prospects – in comparison with simply 47% who fee their communication as ‘poor’. In the meantime, 85% of all SMEs agree that when scaling their enterprise, speaking clearly is significant to profitable progress.
Alongside bettering collaboration, an extra gateway to progress lies in deploying automation and AI, in line with UK SMEs. Nearly 1 / 4 (23%) say that they’ll make investments time and/or cash in AI to stimulate progress within the yr forward – showcasing the urge for food SMEs have for utilizing new applied sciences to supercharge their work.
Vanessa O’Mahony, Head of Small and Progress Companies, EMEA at Slack stated: “SMB progress is essential to the prosperity of the UK. But this analysis means that the engine room of the UK economic system is at risk of stalling. There’ll all the time be some elements outdoors of a enterprise homeowners’ management, however by prioritising the interior levers which have the best influence, they’ll set themselves on a path for sustainable progress. Meaning doing all the pieces they’ll: investing in abilities, bolstering productiveness with platforms that drive stronger communication, motivating groups, and embracing AI’s potential. We all know these are the components for progress. If we get the recipe proper, each particular person companies, and the nation, will thrive.”
Anthony Impey, left, CEO of Be the Enterprise added: “The UK’s small and medium-sized companies are among the most spectacular, hard-working and resilient on this planet. They make an enormous contribution to the economic system and society and there’s huge potential to show across the UK’s flagging productiveness by supporting leaders to make small modifications. We all know that improved management and administration abilities and tech adoption are key drivers of productiveness, and may be transformative in reaching progress. That’s why we imagine within the energy of taking recommendation – from a mentor or advisory board, for instance – to assist leaders determine and capitalise on these progress gateways.”
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