2020 saw many businesses suffer depending on their sector. And while some had to close their doors for good, there appeared to be a sharp growth increase ticking away in the background. According to recent data collated by the Department for Business, Innovation, and Skills, there were a whopping 5.9 million small businesses at the start of 2020. When compared to the previous year, the private sector saw an increase of 1.9%. This may sound small, but this percentage equates to an impressive 113,000+ SMEs being launched!
But how come the economy has seen such impressive growth with small to medium sized businesses despite the Coronavirus pandemic? And what can we learn from the data that can help these enterprises continue to grow in the future?
What is an SME business?
We define an SME (small and medium sized enterprise) as a business with less than 250 employees. Within the umbrella of an SME, there are generally three different categories – medium sized, small, and micro businesses. These categories are defined by turnover and the number of employees.
According to data regularly published, SMEs makeup around 99% of all businesses in the UK and are incredibly important to the UK economy. As millions of people work in small to medium sized enterprises, they are a key driver of growth and sustainability in the economy.
How does an SME business evolve?
There are many driving factors that help an SME grow and evolve. Small businesses, no matter the industry they sit in, help shape the UK economy every day. Although the majority of small businesses are not employers, but sole traders who work independently, SMEs still make a large contribution to job creation in the country.
When it comes to growth, SMEs can do this in many different ways, whether this is expanding their operations or taking on more employees. This could be as little as one additional employee or even 100, either way, it’s a great way for these booming enterprises to evolve and grow.
If you’re looking for practical tips on how to grow your SME business, whether you’re an SEO marketing agency, e-commerce business, or offer a service, here are some quick wins that will help you grow:
- Get to know your customers/audience
- Nurture existing customers and look for new opportunities
- Optimise your website and build a strategy
- Use social media to your advantage
- Attend networking and other events to integrate further into local communities
- Measure what works and refine your approach as you go
The secrets behind the growth of SME businesses in the UK in 2020 and beyond
There are a number of ways that you can grow your business this year and beyond. One of the biggest changes an SME can make is not so much to the front end of their business, but the back end. Think about the last time you optimised your website…did you follow a strategy of any kind, or did you simply add new pages without any thought or consideration?
Your SEO strategy can be a huge driver of traffic to your website, helping to create more customers and subsequently profit. Having a bigger and better digital presence on search engines is one of the top ways that businesses have grown over the past year.
With many people working from home, online search and demand have skyrocketed. If your website isn’t up to scratch, it’s likely you’ll be missing out on hundreds, if not thousands of pounds of revenue that will be going into other businesses’ pockets. Make 2021 the year you home in on your SEO and marketing strategy.
