The Capital Economics SME Growth Tracker suggests that small businesses using digital tools and e-commerce had more positive outlooks compared to firms that weren’t completely embracing the modern digital economy.
The Growth Tracker is commissioned by Amazon UK and Enterprise Nation, and it showed small businesses making use of e-commerce could expect stronger job growth and revenue than companies without an online presence.
The projections for small business owners using e-commerce were 1.8% over the next 12 months, slightly higher than the 1.3% growth offline business owners could expect. Mark Pragnell, the chief project economist for Capital Economics, released a statement commenting that companies using e-commerce and offering exports are making more money than companies that don’t trade online and don’t trade internationally.
Larger Growth and Revenue
According to the growth tracker, businesses using ecommerce predicted not just larger growth and revenue, but that they would also see more of their revenue come from these online sales solutions. 45% of UK firms are currently using ecommerce, and it’s expected that online sales could become up to 48% of their total revenue, slightly up from the 46% seen last year. This number will only rise as more and more consumers do their shopping online.
A survey of some 1,000 firms was used by the growth tracker to calculate a confidence index score that could be used to assess the current economic sentiment of British businesses, ranging between -100 and +100. Businesses embracing digital tools saw a score of +7, higher than the +3 for other businesses. All in all, digital businesses have a brighter future in store for them. Going online opens your business up to customers all around the country and – if taken to the next level – around the world.
Small Businesses Utilising E-Commerce
Doug Gurr, the UK country manager for Amazon, commented on the report, saying that the results showcase how powerful e-commerce can be for smaller firms. He released a statement saying that the results show an increased level of confidence in small businesses utilising e-commerce to access potential customers across Britain. Amazon believes that technology will play a very big part in taking small businesses in the UK and fostering their growth and success.
The research showed that there was a regional divide as far as the use of digital tools goes. The area that had best embraced these digital solutions was Scotland, where 55% of firms are using online tools, while only a third of businesses in the North West of England had taken themselves into the digital age. Scotland is in the running to become the technological centre of the UK, so this statistic will hardly come as a surprise.
The results are in and they speak for themselves; there’s really no excuse for your business to not enter the digital age. If you run a small businesses and you haven’t gone online yet, then what are you waiting for? Find a way to take your business to the next level to secure your future. It’s easy to find the right e-commerce solutions for your business.