Recent findings from the #SBS State of the Nation Roundtable report indicate that a majority of small and medium-sized enterprises (SMEs) feel they are merely getting by rather than flourishing.
Less than a third have sufficient cash reserves to sustain their operations for over six months, and 58 per cent have refrained from investing in their business in the past year due to economic uncertainties. Additionally, over a third of small business owners have reduced their own salaries to keep their ventures running.
Navigating challenges and seizing opportunities
The report underscores the financial pressures on SMEs, who are grappling with issues like escalating expenses, Brexit-related bureaucracy, and limited access to funding.
However, it’s not all doom and gloom; nearly 50 per cent of small businesses have already incorporated Artificial Intelligence (AI) into their operations, and 60 per cent are enthusiastic about its potential.
The integration of AI offers SMEs a unique chance to compete on an equal footing with larger organisations.
Pathways to prosperity
Despite the report’s somewhat bleak outlook on the future of many SMEs, there are actionable strategies that can help businesses not just survive but thrive. These include:
- Cash flow scrutiny – Periodically assess your cash flow and make necessary adjustments
- Financing avenues – Investigate various funding options, such as grants and low-interest loans
- AI adoption – Using AI for task automation and data analytics
- Online marketing – Allocate resources to digital marketing to expand your customer base
- Global outreach – Like microbusinesses, who have led the way in exports, SMEs should also consider tapping into international markets for added revenue
- Cost management – Monitor spending closely and eliminate unnecessary expenses.
- Task delegation – Think about outsourcing peripheral tasks to cut down on operational costs
In the face of ongoing economic challenges, being proactive and employing the above strategies can be instrumental in transforming your business from surviving to thriving.