SMEs – Time to grow

SMEs…it’s time to adapt your business model to deliver growth. At least, that’s the findings of a survey which looked at the way in which business models are adapting to take account of new technologies across Europe and the USA.

The survey, commissioned by Exact, found that 64% of UK SMEs face competition from new digital players and yet only 6% are investing in new technologies which would help them to retain market share. Interestingly, this comes at a time in which 73% of UK SMEs are actively planning to grow.

The essential message from the survey is that SMEs need to constantly review their business model in order to ensure that they are making the most of opportunities for growth; whether this be the adoption of cloud accounting, online sales, remote working or any other method.

It will also be worth SMEs keeping a close eye on tax changes particularly over the next couple of years in order to optimise tax planning.  For example, at the time of writing George Osborne has proposed a cut in corporation tax to 15% as one element of the creation of a ‘super competitive economy’ with low tax rates. Whether his plans come to fruition will probably depend on the outcome of the current Conservative leadership contest but it does serve to highlight the opportunities which may be available for SMEs in the forthcoming years.

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