Over half of small businesses (58%) are concerned about their revenue for the rest of 2023, with six in ten having just one goal for the year – to stay afloat, a report has found.
A survey of 500 SME owners and decision makers have revealed the top things they believe they should be doing in order to meet this goal of staying afloat, such as improving customer service, and keeping an eye on all outgoings.
However, almost half (46%) are not making time to consider how they could run their business differently – which is listed as the number one approach that could keep them afloat.
And despite 24% believing selling via social media is a key step to success, 28% do not yet even have their own social media channels.
Further to this, 47% do not have a presence on global online marketplaces – which 26% believe they should be using to deliver success.
Other necessary adjustments small businesses believe are needed to stay afloat include finding new markets abroad (18%), and streamlining operations (21%).
Meanwhile, 43% see adaptability as critical to success – trying and testing new processes and ways to do business.
The findings emerged in PayPal's Business of Change 2023 report, which aims to encourage SMEs to rethink the potential of their business.
It found that SME owners believe over a third (36%) of revenue, on average, has come from thinking outside the box.
And the online payments company has also created this eye-opening quiz, to test what kind of business owner you are – and offer solutions to help small businesses thrive in this tricky economic climate.
Vincent Belloc, managing director at PayPal UK, said: “We recognise the many challenges currently facing UK small businesses.
“But we hope that our latest findings inspire SMEs to rethink their potential and the ways they do business for the better – moving away from just surviving, to a thriving mindset in 2023.
“Our report of 500 SMEs highlights that many are being held back by managing too many business systems, taking up valuable time.
“Small business owners are looking for all-in-one solutions to help them improve efficiencies, and allow them to do what they do best – sell and grow.”
The report also revealed the biggest barrier to rethinking new ways of working, is worrying about finding the right people to help enact them (22%).
Just over a fifth (21%) stress about the day-to-day overheads, and 15% don’t have a deep enough knowledge of international trade.
Yet hope remains, as 70% are hopeful their business will reach its potential in the next five years – further supported by 77%, who agreed it took longer than one year to start seeing results.
But it isn’t just the flagging economy holding small businesses back, as 54% of owners admitted to feeling overwhelmed by the multiple different financial and operating systems needed to run their business.
And 59% believe they’d be able to rethink their business potential if their operations were streamlined efficiently.
However, when looking to other factors holding SMEs back, the data showed 34% still do not have a website, according to the OnePoll figures.
Vincent Belloc, from PayPal UK, added: “When you’re running a small business, and sitting at the very top, you have so many different things to think about.
“At one time you can be acting as CFO and thinking about cashflow, the next you’re in marketing and planning promotions on social media.
“But it is encouraging to see the general positive sentiment UK small businesses have about the future, and as a trusted payments partner, our all-in-one solution can help them focus on what’s most important – managing and growing their business.”
TOP 10 THINGS SMEs THINK THEY SHOULD BE DOING TO STAY AFLOAT:
- Make time to think differently about your business
- Keep a close eye on all outgoings
- Improve customer service
- Sell through online marketplaces
- Sell via social media
- Invest in digital platforms to improve customer experiences
- Reduce prices
- Reduce advertising/marketing budgets
- Find new markets abroad
- Reduce systems and streamline operations
