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Barclaycard Payments’ latest SME Barometer has found the top reasons given for this positive outlook are: mental preparation (36%), the changes they’ve made to their business to make it more resilient (32%), and government support (14%).
The research shows that 45% of respondents have increased their online presence since March, with website improvements (67%), putting services online (66%) and social media advertising (64%) cited as the measures which have had the most positive impact. Half of the respondents also reported investing in improving digital skills, either for themselves or their staff.
The data show that small businesses are being rewarded for adding the ability to take online payments, with e-commerce transactions at small and medium businesses up 6% since last quarter, and up 16% year-on-year.
Looking ahead to next year, 74% of business owners are planning to invest back into their business, the research shows. The most popular areas for investment are marketing (29%) and new equipment/technology (28%).
Konrad Kelling, head of small business at Barclaycard Payments, said: “The past year has been incredibly difficult for SMEs across all sectors, so it’s reassuring to see that many have been able to take advantage of the lessons learned during the first lockdown to adapt their business ensuring that they are able to continue to serve their customers.
“At Barclaycard, we want to support all of our clients and are working closely with those impacted by current circumstances by providing care packages to help them navigate the challenges they face.”
Kelling recommends that SMEs: invest in the “new normal”, make sure people know who’s behind your business, try to think beyond crisis mode, seek out support, and harness the power of social media.
Emma Jones, founder of small business network Enterprise Nation, added: “SMEs have again and again proved their resourcefulness and flexibility in this crisis. They have been proactive in looking at ways to adapt their business for a Covid economy – with investment in online tools, and having staff working from home all crucial to their ability to ride out the latest round of pandemic disruptions. In light of all of the economic setbacks, SMEs are hopeful that 2021 could bring back a degree of normality – and we are hopeful that they will persevere.”
