Diversifying service offerings

Seven in 10 (70%) of the SME owners and decision makers we surveyed reported that they’d noticed a rise in customer expectations – such as an increased demand for more personalised service – with over two-fifths (43%) planning to launch new services to appeal to these shifting preferences. Additionally, over a third (35%) said they’re leveraging special promotions to engage with customers, and a quarter (24%) are implementing new payment methods and loyalty programmes.

While diversification is critical to staying competitive in today’s market, by broadening their services, these businesses can do more than just match their competitors’ offerings. They’re also crucially fostering customer loyalty and engagement to drive future growth.

Investing for sustainable success

Alongside this, many SMEs are investing in the crucial infrastructure of their businesses. As innovative technologies, training, and operational efficiencies become more pivotal to success, over half (55%) of respondents said they’re prioritising investments in these areas. This also extends to upskilling their employees, with 45% planning to do so to remain competitive, and 51% to increase overall productivity.

Beyond boosting productivity, these investments can be essential to elevating the customer experience, helping to lay strong foundations as well as building long-term organisational resilience.

By investing in key business areas that will drive efficiencies and reduce costs, SMEs can enhance their cash flow flexibility, ensuring they’re better equipped to allocate resources strategically and adapt to shifting market demands. By doing so, they’ll not only be better positioned to withstand changeable economic conditions, but to also seize growth opportunities as and when they arise.

Capitalising on resilience

While they can’t control what goes on outside of their business and there will, of course, always be external pressures they can’t avoid, SMEs are reinforcing their resilience to meet these challenges head-on.

According to the research, rising costs are a concern, with over half (52%) citing them as the biggest hurdle they’re facing. However, over two-thirds (68%) of SMEs reported their business as being more financially resilient – testament to how they’ve adapted over the past few years.

To help SMEs harness this resilience and turn obstacles into growth opportunities, it’s crucial that they have access to the right resources and support. Leading a business, while rewarding, can be all-consuming and often leaves senior execs with little time to seek support when they need it. By building a network, business leaders can access fresh perspectives or new ideas they may not otherwise have considered.

Research from productivity champions Be the Business last year found that those businesses that have a trusted network of peers are more resilient to challenges, and therefore more likely to find the solution they need. In fact, the research revealed, a third (33%) of those businesses who received advice, reported increasing revenues, compared with about a quarter (26%) who didn’t.

American Express and Be the Business have produced a guide for small business leaders to help build organisational resilience, spotlighting critical areas of business finance, such as cashflow forecasting and scenario planning.

The power of partnerships

While obstacles and challenges persist, SMEs are demonstrating remarkable adaptability and commitment to growth. However, to help them reach their full potential SMEs need support, and the role of partnerships and networks in empowering them to realise their growth ambitions is critical.

As the Be the Business research highlights, having the right backing is essential to helping businesses grow. With the right encouragement and support, these resilient businesses are well positioned to continue to thrive.

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