20.02.2015

One In Three Unable To Formulate Growth Strategy Due To Day-To-Day Demands

Many SMEs are too busy to develop a proper growth strategy, with roughly a third (36%) saying that day-to-day activity means they do not have time for adequate planning.
 
New research from the Centre for Enterprise and Economic Development Research (CEEDR) and Exact found that these businesses do not know how best to achieve their business goals.
 
The report suggests that operational efficiency is a key factor for success – firms with good timekeeping are 20% more likely to show growth. 70% of firms that class themselves as having industry-average efficiency reported a profit, compared to 50% of those who said it was below average.
 
Lucy Fox, General Manager of Cloud Solutions at Exact said that although the majority of SMEs are looking to grow their businesses this year, many aren't focusing those efforts in the most productive way.
 
"Time is one of the most valuable commodities SMEs have, and it needs to be invested wisely," she said.
 
"While there is plenty of financial support being offered to SME businesses through growth accelerator funds and government grants, more needs to be done to help support them in other ways, given many are just too busy to do anything about it."

Expert Opinion

Forward planning and strategy are critical parts of business and, while it is understandable that day-to-day pressures and activity can mean time for such considerations is limited for SMEs, they should not be ignored. <br/> <br/>"Small businesses should take time to sit down and carefully consider their ambitions and targets, as well as examining the ways in which they feel these can be made a reality. <br/> <br/>"Part of this process should include discussion with their support network regarding how they can help them achieve their goals. Legal advice is critical to this as it will ensure that SMEs are complying with key regulations and have the right policies in place to move forward." Fergal Dowling - Partner