COVID-19 Rebuild: Local Authorities And Business Networks To Play A Key Role In Small Business Success

By citiesabc resources - Oct 01, 2020

· 23% of UK’s top performing businesses have been supported by local enterprise partnerships and growth hubs
· Similarly, 30% of Britain’s strongest businesses have obtained external finance in the last 3 years
· New findings come as part of an independent, holistic study into small business success, commissioned by Allica Bank to support British businesses

A new study, commissioned by business bank, Allica Bank, shows that a high level of engagement and interaction with external institutions and resources, is central to SMEs’ prospects of success.

The study analysed data from over 1,000 companies and ranked their success on a scale that evaluated factors including productivity, growth, consistency and outlook. To measure SMEs’ external engagement, survey respondents were asked whether or not they had engaged with local enterprise partnerships, growth hubs, or external financial advisers, as well as whether they had obtained credit or sought re-financing advice, in the last three years.

The benefit to small businesses in making the most of external resources are clear to see, with a quarter (23%) of the UK’s top performing SMEs – those in the top tenth percentile – actively engaging their local enterprise partnership or growth hub in the last three years. This compares to just 16% of all other small businesses. With such a clear benefit to businesses, these external networks must not only be protected but prioritised by any Government plans to rebuild the economy post-COVID.

Similarly, of the top performing SMEs in the country, 30% have obtained external credit in the past three years, compared to less than a quarter (24%) of all other businesses. This figure drops even further for the weakest performing businesses – those in the ninetieth percentile – where just 12% of businesses have obtained external financial support in recent years.

Chris Weller, Chief Commercial Officer, Allica Bank, said: “At Allica Bank we understand that no two businesses are the same. We also know that no-one knows a business as well as its owners and managers. But they can’t be expected to be experts on everything.

“In the UK there is a wealth of external advice and support for small businesses and we urge each and every business out there to tap in to the external resources around them. Third-parties, such as business clubs, chambers of commerce, local enterprise partnerships and trade bodies, can be invaluable sources of advice and further resources. And although they have excelled in their given field, business owners may still lack knowledge in many other areas of running and growing a business. Therefore, engaging with third parties can give business owners the kinds of insight – and fresh perspectives – they need to succeed.

“As the economy and the country comes to terms with the impact of the COVID-19 pandemic, it is important these vital SME resources are protected and given the funding they need to continue providing invaluable insight and support to small businesses up and down the country.”

Allica Bank's SME Guide to Success identified six 'rules to success' that were more likely to be displayed by top-performing SMEs compared to their counterparts. The full report contains a wealth of additional data and insight into each of these topics.

As part of its mission to empower small businesses, Allica Bank is making the findings freely available and running a series of free online workshops with relevant partner organisations for businesses to attend.

Masterclass Live Event: Growth Hacking, Gamification, Blockchain, AI and NFTs On Dinis Guarda YouTube Channel

Apr 08, 2021

Bart Smets, Seasoned Leader And MD at IT2Profit On ICT, Blockchain, Bitcoin, Crypto, Tokenisation, OCT & Cybersecurity 

Apr 06, 2021

The Future Of The Global Economy: A Conversation Around NFTs, DeFi And Digital Assets

Apr 02, 2021

Glenn Parry, Professor of Digital Transformation at University of Surrey – Digital And Real Economy

Mar 31, 2021

From Sophia The Robot To Established Artists: This Is How NFTs Is Disrupting The Creative Industry

Mar 29, 2021

White Paper: Expert Prognosis For The Planet – We’re On Track For A Ghastly Future

Mar 26, 2021

UK Tech Nation: Next Steps For First LawTech Sandbox As Pilot Draws To A Close

Mar 25, 2021

San Sunner, Producer of Amazon ‘The Social Movement’ – The Future of Work: Learning To Learn

Mar 24, 2021

LIVE Event: Digital Assets, NFTs, DeFi and The Future of Global Economy and Exchanges On Dinis Guarda YouTube Channel

Mar 22, 2021

Women Empowerment, Fintech Innovation, Digital Transformation, Decentralization: The Biggest Digital Trends of 2021 At Digital Week Online 

Mar 22, 2021