Recovery Britain: some inspirational results from SME research

The past weeks have seen an increase in coverage of the renewed concerns about the depth of the global financial crisis – this makes for concerning viewing and it can all be a bit overwhelming. But then I sat down and read View From The Hill, the Magazine of Kingston Business School and Kingston Law School where I completed my postgraduate studies, and it made me feel a little brighter.

Dr Tom Wainwright and Dr John Kitching of the University’s Small Business Research Centre have investigated how small and medium-sized enterprises have responded to the recession and have come up with some interesting findings:

• 20% of SMEs are planning to take on a recent graduate in 2011
• 66 % are planning to maintain spending on product and innovation
• 24% are planning to increase spending as a way to drive innovation and growth and
• 43% of firms are planning to increase marketing spend

It would seem that a large proportion of SMEs are taking positive, proactive steps to innovate, re-think, push forward and fight hard! They are planning to channel money in to the most worthwhile areas to bring real change and growth to their businesses.

The survey also highlighted the opportunities that exist for SMEs in a recession:

• Recessions motivate business owners to adapt products and processes in order to improve performance or to survive.
• Purchasers often switch to new suppliers for cost or quality reasons.
• Recessions impart downward pressure on prices, enabling small firms to access cheaper inputs.
• Recessions often increase the rate of market exit, enabling surviving firms to compete for the ‘vacant’ market share.

All food for thought! It’s been interesting to reflect on how we have adapted to the recession at Mzuri and how we have helped other businesses really focus their marketing spend on those areas that generate the best return. As we work with lots of start-ups, it is always fascinating to see new businesses in the making and we take great pride in helping businesses build the best foundation they can when it comes to marketing their business – from an impactful brand, to an effective website and online marketing strategy, we really do get a buzz out of helping businesses succeed.

So, while the news might be full of doom and gloom, take heart from these interesting findings and stay positive and passionate about your business. I’m feeling inspired to see what opportunities are out there for Mzuri and hope you’ll be inspired for your business too.

Source: Recovery Britain, The brave new world of small business. Dr Tom Wainwright and Dr John Kitching, View From The Hill, Spring 2011.