Battle For Customers Intensifies As Number Of Businesses Rises 50% in Five Years
Nearly half of all small businesses owners now cite keeping track of their financials and cashflow as a major concern as competition increases
UK small enterprises are becoming increasingly worried about their ability to attract new customers as the business battleground intensifies, according to a report by MadeSimple.
Referencing figures released by Companies House, the survey reveals that 598,000 new businesses were formed in 2015, compared to just 389,000 in 2010 – an increase of 50% in just five years.
The flooding of new competitors into the market appears to have taken its toll on existing enterprises, with many now concerned there isn’t enough custom to go around.
MadeSimple’s survey of 1,300 small enterprises reports that 54% of respondents said gaining new customers was one of the main factors “keeping them up at night”, while 49% cited keeping track of the finance and cashflow of the business as a “major worry”.
Time management (44%), company admin (15%) and managing employees (10%) were other areas highlighted as concerns.
Howard Graham, CEO of Made Simple Group, said:
“Consumers have more choice than ever before, thanks to the growth of online business, social media and general connectivity and accessibility.
“As such, consumers may be less inclined to show loyalty to one brand or service. That’s why it’s crucial for business owners to put customer attraction and retention at the forefront of any strategy.”