Last week, I sat down with leaders and policymakers in the small business space to discuss one of the most important issues facing the UK in the coming years: growth.
Kickstarting economic growth is the Government’s number one mission. And we won’t get there without the country’s small and medium businesses. The figures are clear: there are 5.5 million small businesses in the UK, and improving their annual productivity by just one percent during this Parliament would grow the economy by almost £100 billion, equivalent to over half the annual budget of the NHS.1 But how do we get there? And whose responsibility is it to lead the way?
It would be easy to write this off as a Government issue. Research has shown that greater adoption of technology amongst small and medium businesses (SMBs) could directly boost the economy2 – but that the UK’s SMBs currently invest less in technology than their G7 counterparts.3 The delayed adoption of technology from smaller businesses could hinder the UK’s international competitiveness. The Government can address this by making digital adoption a central pillar of their upcoming Small Business Strategy, with clear delivery targets and the right incentives for SMEs to invest.
However, the reality is that we can’t rely on policy alone. Or on the UK’s start-ups and scale-ups to carry the burden. The small businesses I speak to tell me that they are doing all they can to survive and thrive. Big businesses are already playing an important role in supporting SMBs. But there’s still scope to raise the bar. We all need to do more.
For small businesses to reach their full potential as a UK growth engine, we need big businesses – including BT – to build further on the strong foundations we have in place. This means listening to the common challenges faced by the SMB community and stepping up wherever possible by sharing more of the resources, skills and expertise we all have to offer.
Putting people first
Big corporates often say that their greatest asset is their people. I truly believe this, so if we’re going to empower smaller organisations to drive productivity and growth, then we should start with our people.
Many of our tech peers are already doing excellent work in this space, and we’ve seen it ourselves with our Digital Boost scheme – hosting a range of BT-led activities like 1:1 mentoring sessions, virtual workshops and webinars along with a 6-week accelerator program. More than 5,000 businesses and over 300 BT people have gone through the various schemes over the past two years. This not only helps plug the digital skills gap – it also helps build pride amongst our teams. It’s a great start, but there’s more to do.
It’s well known that take-up of apprenticeships amongst small and medium businesses is particularly low. That’s why we announced last week that BT is sharing up to £4 million from our apprenticeship levy funds to help give these businesses the support they need to invest in talent, boost productivity and create a more skilled, diverse, and competitive workforce. I’d urge other big employers to look into ways they can use their levy in a similar way.
Connecting for good
As much as business is about people, it’s also about connections. Digital networks have a vital role to play in making these connections. In a recent study, three in five small companies said a strong digital foundation is essential to their business.4
Whether it’s apps that enable payments for food trucks at busy events, or reliable networks to connect social media entrepreneurs to their customers, businesses need technology to help them compete and grow in a digital economy. BT’s fixed and mobile networks connect more than one million small businesses across the UK – and we know we have a major responsibility to underpin their growth.
As confidence amongst small business leaders starts to rise5, we’re making a commitment to continue helping boost their connectivity, security and skills. From 01 October we are offering four months’ free broadband for small business customers on 24 and 36-month contracts – as well as three months’ free cyber awareness training for any small business looking to upskill its people (no matter which network they’re on).
These measures can have real impact. After all, we know that only 30% of small businesses had any cyber training or awareness raising activities in the past year, and that figure drops to 14% for micro businesses. For those that don’t turn on their human firewall the cost can be high: the average cost of a successful cyber breach to small and micro businesses is over £4,500.6
We’re making encouraging progress, but it doesn’t stop there. As well as working with the UK’s smallest companies, we also count 90 of the FTSE 100 as valued BT customers. So we’re challenging ourselves, our customers and our tech peers to push harder for small business growth. Whether it’s dedicating time, resources or reevaluating our supplier relationships, we must build on the foundations we’re all laying and commit to upholding best practice and leveraging our networks to elevate small businesses.
Let’s continue to prioritise the skills, technology and leadership that will enable national productivity and growth on the scale we need. This is a national mission, and we all have a role to play.
1 Be the Business G7 Productive Business Index | Be the Business
2 Untapped tech adoption could boost UK economy by £232 billion annually (sage.com)
3 FSB | Small Business Index: Quarter 1, 2024
4 Research commissioned by BT and conducted by Censuswide among 2,000 UK business decision makers, between 26 March and 5th April 2024
5 FSB | Small Business Index: Quarter 1, 2024
6 Department of Science, Innovation and Technology, Cyber Security Breaches Survey, published April 2024