What can we expect for SMEs in the next 12 months?

Despite small businesses facing a myriad of challenges- inflation, a looming recession, increased rental costs, and much more- small business owners remain optimistic about the future. 

2023 may see the state of small business explore the gravitation towards side hustles, the shift in how employees work together, the value of community for in-person work, and the adjusting dynamics of hybrid work. 

So how can businesses successfully tackle this tapestry of trends? Here are some trends we can expect in the next 12 months and how to navigate them. 

Modern Workplace Changes Continue

"I think the small businesses that can adapt to change are going to be the ones that thrive in 2023 and beyond. A single decision we never saw coming can significantly impact us, “ says Evernote Expert Dr. Frank Buck. “The question I think we all need to ask is, ‘Is our business organised enough and up-to-date enough that if an opportunity arises and a crisis emerges, we can act immediately and effectively?’"

The ability to react to change is especially important for recruitment due to the ongoing labour shortages in the UK. With the legacy of the pandemic fully in place in regard to remote and flexible working, we can expect to see a further evolution in modern day working practices - the increase in contractors and freelancers. 

Similar to the working from home movement this trend is born out of necessity. With businesses facing an increase in costs as well as uncertainty with a cost-of-living crisis it makes sense to utilise the highly skilled, experienced and motivated contractor and freelancer pool. Doing so brings a multitude of benefits to organisations. 

Firstly, it minimises the risks of businesses. There is no longer the fixed salary cost each month despite quieter months. Rather, businesses can scale freelancers’ work up and down depending on demand. This allows the company to have more flexibility and even grow as they can service one off projects or seasonal fluctuations that wouldn’t have been possible with the existing team size. 

Secondly, using contractors means you can often select the right person for that job or project rather than who has the time. This can result in greater outcomes with a more experienced team member who can deliver what you need. Additionally, you can expand your services as you recruit team members who bring new skills to the organisation. 

Flexible working environments 

After two years of working from home many of the workforce are itching to get back to the office more, even if just for a few days a week. With this in mind companies will increase the focus on design to a flexible work environment. 

Management will want to create working environments that really appeal and cultivate the positive aspects of in person working, such as informal chats, as much as possible. This will include hoteling desks and more open/collaborative spaces. 

Running parallel to this will be more of a focus on investing in improved video tech to enable better virtual working and aid collaboration across teams spread out geographically. 

Different demands

As a result of the new working model, we will see a new definition of teamwork emerge. 

This hybrid working means there are now different demands on what jobs look like. It’s important that team members can promote both teamwork and individual productivity. To achieve this firms will need to engage with tools that aid deep work and teamwork. 

There are many B2B tools aimed at making teams more successful. However, these are typically designed for larger businesses but don’t take individual members of the team into account. 

SMEs should be exploring more cost-effective tools such as Evernote that understand the importance of individual work that feeds into more collaborative and productive teamwork. 

Productivity + Mental Health

Over the past few years, we have seen a positive shift in the way that mental health is viewed both personally and professionally. Many of us were likely exposed to worsening mental health due to the pandemic which has created a greater understanding of the challenges it can bring and how to address them. 

Due to this companies will place more emphasis on taking time to slow down, rest, and rejuvenate. Firms that embrace this will see higher productivity, improved mental health, and a more sustainable work life balance. 

In addition to this, we can expect to see a move away from the tactics of the past that looked to create a more ‘fun’ working environment with the likes of ping-pong tables and happy hours. Now that resource will be better used to invest on wellness stipends, support for caregivers and parents and help with the likes of therapy or breaks to improve wellbeing. 

Finally, Neil Maxfield recently predicted ‘a requirement to focus on sustainability/green supply chains (due to customer insistence) in 2023’. At a time when many UK SMEs are already increasingly seeking to diversify their supply chains, we expect this to be a real opportunity for them to find new partners with excellent sustainability credentials.