Opportunity has been a word in short supply for many small to medium businesses in recent years. But 2013, seen by some as a ‘turning point’ for the UK economy, has provided such businesses with just that; opportunity.
Last year, SAP’s Thinking Bigger survey found UK SMEs in a confident and optimistic mood. Businesses were positive about their prospects for growth, with a significant minority even bullish; aiming to grow at a faster rate than the industry standard.
The second phase study, launched in October 2013 found businesses rose to the challenge, largely meeting growth expectations and in some cases, exceeded them. It’s clear that businesses have spent the last few years focussing energies on building the foundations for growth and now they are reaping the rewards.
However, in order to achieve sustainable growth, SMEs need to think – and act – more innovatively. The success seen by many companies has been nurtured by careful management and, as with all objectives, growth relies on the strategic implementation of a vision.
The research found that the key reasons behind businesses meeting their growth expectations include:
– Successful business strategies (44%, rising to 50% amongst organisations with higher turnover)
– Improved IT infrastructures (40%)
– New product development (34%)
It’s clear that in this increasingly competitive environment access to money and finance alone is no longer enough to drive business growth. However, coupled with the above attributes and an innovative mind-set, SMEs can succeed.
John Antunes, Regional Director, SME and Channels, UKI & Netherlands at SAP
SAP’s FREE Innovation Champions report is available here