RESEARCH of 500 SMEs revealed nearly half don’t think they’ll grow over the next two years – not just due to the challenging economic landscape – but a lack of technical expertise.
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And 43 per cent feel their absence of technical knowledge will limit their ability to expand over the next couple of years.
This lack of optimism when it comes to scaling up is also down to the challenging economic climate (38 per cent) and competition within the industry (35 per cent).
In today’s dynamic business landscape, growth is not just a desire but a necessity
PayPal
Consumers purchasing less (37 per cent) and lack of fund for marketing (21 per cent) were other top barriers called out by SMEs surveyed.
PayPal’s 2024 Business of Change Report also found 62 per cent agreed online sales is key to expanding their organisation, yet 31 per cent don’t feel they have the technical skills to enable their company to thrive in this space.
Nearly a third (32 per cent) wouldn’t feel assured in their ability to sell internationally.
A further 28 per cent lack faith in their understanding of online and social media marketing, while 24 per cent don’t feel they know enough about ensuring their website is secure and safe for customers.
More than three in 10 (31 per cent) would be concerned about their ability to manage and protect customer information in an environment where cybersecurity is on the rise.
And 17 per cent are stumped when it comes to knowing which payment methods to offer, such as instalment options like buy now, pay later or digital wallets.
Vincent Belloc, Managing Director, PayPal UK noted: “In today’s dynamic business landscape, growth is not just a desire but a necessity.
“Yet, it’s accompanied by its own set of challenges. As consumer purchase behaviours shift and technologies advance, keeping pace can be daunting. However, our research indicates a promising outlook on the horizon.”
The research went on to find 73 per cent have seen changes in consumer behaviour within the last two years, including turning to online shopping more (23 per cent), demands for discounts (32 per cent) and more ‘abandoned baskets’ online (13 per cent).
But 69 per cent reckon if their business can overcome barriers like these, it has the potential to flourish.
Some of the top goals SMEs are striving for include increased revenue (61 per cent), improved customer loyalty (27 per cent) and expanding their e-commerce operations (14 per cent).
However, 32 per cent said their profits are lower than originally forecast, and 23 per cent expected to be operating at a larger scale than they currently are now.
Hope is on the horizon for 2024 though, as half of those polled via OnePoll plan on increasing their marketing efforts over the next year to help drive expansion.
Over half of SME owners (57 per cent) also believe that investing in technology and AI skills will be key to their ability to adapt to the rapidly advancing technology landscape.
While 41 per cent plan to pump more investment into online sales.
Vincent Belloc added: “We’re thrilled to see numerous UK small business owners acknowledging the opportunities for growth and actively planning for expansion in 2024.
“We’re confident that unlocking the power of online sales is key to fostering business growth. That’s why we’re excited to introduce PayPal Complete Payments, designed to empower SMEs in streamlining their online payment capabilities.”
