West Midlands small firms optimistic for 2020
A new study has found that 42 per cent of small and medium-sized businesses in the West Midlands are confident that things will improve for them over the next 12 months.
The BT research saw 58 per cent of West Midlands SMEs that responded say that they are considering 5G investment but lack of digital skills and resources is threatening to hold them back
Also 44 per cent in the region say concerns about how they will reduce costs and overheads this year are their biggest challenge.
BT's study is its largest ever into SMEs with fewer than 100 employees across the UK
In the West Midlands around 70 SMEs took part, with a third more confident about their growth prospects compared with last year.
SMEs that are looking to increase technology spend in the next 12 months are most confident in the economy and expect their business to grow in revenue and profit, compared to the average.
In parallel however, SMEs also show signs of scepticism, with almost 30 per cent across the UK expecting revenue and profit to decrease in the year ahead. A total of
In terms of technology investment, over a third of SMEs surveyed in the West Midlands expect the speed and reliability of their internet connection to increase in importance this year, and half expect to invest more in technology than in the previous 12 months.
Conversely, 50 per cent of SMEs in the region are not looking to increase their technology investment, while an even higher proportion (75 per cent) also do not expect to increase IT/telecoms spend in the coming 12 months.
"There is a clear indication SMEs that are able to harness the potential of technology feel a greater sense of business confidence. But whilst a large proportion of business operators recognise the importance of connectivity and the need to digitise, they are being held back by a lack of awareness around the benefits of this new tech, which is costing the UK an estimated £63 billion a year. It’s clear that SMEs need more support to help them embrace the new wave of digital transformation which will be ushered in by 5G and a more mobile centric approach to running businesses," said Chris Sims, managing director for SMEs at BT’s Enterprise business.
More than half of West Midlands SMEs surveyed believe BT should play a role in providing digital skills training. BT has recently announced its Skills for Tomorrow initiative – a major new programme designed to empower 10 million people by giving them the skills they need to flourish for the digital future.
