Small firms in the UK could be missing out on £35,000 of extra revenue each month due to a lack of efficiency online, according to a new survey.
The study by Wix, a cloud-based web development platform, looked at the productivity, efficiency and general sentiment of UK SMEs in 2019. It found that 40% of British businesses still have no online presence and almost one in three (30%) that do have a website are still not completely digital.
Of those surveyed, 87% of the SMEs that still do not have a website claimed that they don’t see the benefit of digitalising all of their business. However contrary, 88% of SMEs that are completely digital (using digital tools like invoicing and payments, customer service, chat, and automations, etc.) revealed their revenue has increased by an average of £35,000 a month, and £23,000 for those with one to 49 staff members. This was predominantly down to saving time and resource.
Tasks that SMEs are most likely to keep traditional (not digital) were revealed as 59% customer service; 56% administration; 48% bookkeeping; 44% payments and invoices; and 41% marketing.
Looking at cost, SMEs revealed they pay on average £28 an hour for administration skills; £29 an hour for payments and invoicing; £29 an hour on bookkeeping and £27 for social media management.
Matt Rosenberg, Director at Wix, said: “The results of the survey are not a surprising. For an SME owner, moving your business online for marketing and management is good for exposure, productivity and efficiency, and the results will be evident on the business’ bottom line.
“SMEs in the UK would absolutely benefit to strive for peak efficiency and bringing their business operations fully online would do just that. The great news is that it’s easier than ever, even for small businesses, entrepreneurs and solopreneurs, to migrate their businesses to function fully online in a cost-effective manner.”
When asked about the biggest issues facing SMEs fear of Brexit led the way, with 38% saying it was the biggest issue. Other obstacles included cash flow (35%); time management and efficiency (25%); and keeping up with technology and innovations in the market (18%).