Small Business Efficiency Linked to Increase in Sales
Productivity and adoption of new technology contributes to small business growth
Small businesses who prioritise operational efficiency experienced a greater increase in sales with 70% witnessing a growth compared to 50% of ‘unproductive’ firms, according to a report by the Centre for Enterprise and Economic Development Research (CEEDR) and Exact.
Of the small and mid-sized companies who believe they operate below the efficiency average, 24% experienced a decrease in sales compared to only 8% of the ‘above average’ firms.
In regards to the small and mid-sized businesses who were struggling to be productive, 36% said that a lack of time hindered their ability to make process improvements, with 46% spending between 10 to 20% of their time on non-productive tasks.
The report, which featured a survey of over 700 small and medium enterprises, found that firms that used new technology were more efficient; with 78% of well-organised businesses stating they used cloud technology and nearly half (48%) attributing new software to their increase in growth.
Lucy Fox, the general manager of cloud solutions at Exact UK, commented on the research:
“While there is plenty of financial support being offered to small and medium businesses through growth accelerator funds and government grants, more needs to be done to help support them in other ways, given many are just too busy to do anything about it.
“Time is one of the most valuable commodities small and medium enterprises have, and it needs to be invested wisely.”
For more information on using technology to improve your business’ productivity, have a look at our sister site’s section on business tools here.