Majority of SMEs expected to increase investment

Thursday 9 June 2016

Although there are concerns about what a Brexit may mean for SMEs, it seems that many small businesses are growing in confidence no matter what the outcome of the EU referendum is.

According to research conducted by eBay, some two-thirds of small companies are planning to increase investment in the next 12 months. It found that marketing will be the main priority for the 66 per cent of small firms looking to boost their external resources in the UK.

Figures from the Centre for Economics and Business Research indicate £24,000 is spent on marketing by a small business each year. However, this could soon rise with eBay's study suggesting that nearly half (45 per cent) of small businesses expect to increase their marketing spend over the next 12 months.

The research also highlights the areas where small business owners need to outsource to improve the skill set of their firm.

According to the e-commerce company, a quarter of bosses said they had little or no understanding of SEO practices, while 74 per cent understood the role that social media can play in driving growth.

"At a time when many small businesses are expressing disappointment at the availability of funding, they are still savvy enough to know the return on investment that increasing marketing spend can have on their bottom line," said Gareth Jones, marketing director at eBay UK.

He said the findings were good news for the industry and the broader UK economy.

The research also found that more than a third (35 per cent) of small online enterprises in the UK intend to increase their product range, while 12 per cent will improve their customer service.

However, wages and training were also a key priority for many, with 11 per cent and ten per cent of respondents focusing on these areas respectively.

 


By Victoria McDonnell

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