It’s lukewarm news for small businesses in the services sector, as the latest quarterly results show that that the economy expanded by just 0.2% between January and March. This was largely due to weak performance by the services sector which accounts for over three-quarters of UK gross domestic product (GDP). The results from the Office for National Statistics further show that hotels, restaurants and shop have been hit particularly badly as consumer spending drops.
Deals with SMMEs
More and more small businesses are benefitting from partnership deals with larger firms, according to recent statistics. In the last tax year, large companies invested a whopping £21 billion through over 1,000 deals with SMMEs in the UK. Much of this investment is going into research and development, showing healthy appetite for investment in the UK’s small business community. However, it is unclear how much longer this will last: although investment is currently at encouraging levels, the number of deals in fact dropped by almost 30 per cent last year, meaning SMMEs still need to work hard in order to attract crucial investment.
Targeting your marketing
According to a report by BlueVenn, almost three-fifths of UK consumers think that brands are failing to target them effectively. This is despite the wealth of online and offline customer data now available to brands seeking to promote themselves. It seems that many small businesses in particular are failing to make the most out of the information available to them, with over half of all small, medium and micro enterprises (SMMEs) looking for advice from other businesses.
Social media is a particularly important, and low-cost, means of driving up brand awareness: our upcoming workshop on using social media can help you understand how to promote your business using social media.
The future of many of the capital’s SMMEs in tech could be hanging in the balance, according to entrepreneurs. Last week it was reported that at least four British venture capital firms have lost funding from the European Investment Fund, which is no longer sending funds to applicants following Brexit. This means that many small businesses in London’s tech city could have their funding streams threatened. It is now more important than ever to dedicate resources to new business generation: find out how your business can develop more leads in our upcoming sales training.
If you have any questions or would like further information about the range of support on offer in the Building Legacies Programme, please contact Danny on email@example.com or call the office on 020 7537 6480.