Almost half of SMEs reveal financial concerns
Nearly half of the UK’s small businesses have concerns over their funds for the 2015/2016 financial year, according to new research.
Just 53% of companies admitted that they feel confident about the financial health of their business, a report by Redshift Research, on behalf of Shopkeep, has revealed.
The report suggests ensuring good levels of financial health relies on implementing the right technology, especially in digital forms.
It highlights affordable ways of becoming digital and of introducing new methods of working with devices which were previously unconnected, such as cash registers for example.
Nearly two thirds of SMEs suggested that they want greater support from the Government to aid the implementation of such modern technology too.
The situation in the UK varies greatly from that in the USA, as 96% of American firms are confident of their business performing well in the year ahead.
In addition, 98% of those firms are confident of success 12 months from now and the study suggests that overcoming the digital divide could be what is needed to help UK firms to catch up.
A positive sign for UK companies though, is that the report suggests many are starting to realise the potential of using digital platforms.
However, it is also suggested that the majority of firms need help to boost their confidence relating to how best to introduce and use such sites.
Facebook is currently the predominant site where SMEs are focusing their digital marketing activity, although websites, direct email campaigns and Twitter and all being used more regularly now than in the past.
Given that there are around 5.2 million businesses in the UK that are classed as SMEs, the research suggests that a considerable proportion of them are fearful of their futures.
Even if some of this worry stems from a lack of digital infrastructure, small businesses may wish look into the options they have available.
This should help them secure a foothold for their futures, providing them with the tools to ward off the threat of company administration or any other form of financial control should they find themselves in difficulty.
By Phil Smith