Over two-thirds (68%) of SME leaders believe their business is resilient and prepared to withstand challenges, with a similar proportion (69%) feeling confident in their ability to recover quickly from setbacks.
American Express’ annual Business Barometer research, conducted in partnership with Small Business Saturday UK, polled 1,000 senior decision makers at UK micro, small and medium sized businesses.
Respondents feel their businesses have greater resilience now because they have adapted to a raft of external pressures in recent times – and they now have increasing appetite to invest in technology to future-proof operations, according to the research.
The survey also found that over seven in 10 (71%) respondents believe they are resilient as a leader, meaning they are well equipped to deal with the range of challenges that running a business present. Three-quarters (74%) say seeking feedback and learning from how they dealt with previous challenges and has been key to building their resilience.
The research suggests that SMEs are turning to technology as one of a number of strategies to further bolster resilience and drive long-term success, in addition to cost management and boosting marketing activity. This trend varies by size of business, with over half (52%) of micro businesses (1-9 employees) investing in technology with the goal of enhancing business resilience, rising to four-fifths (80%) among medium-sized businesses (50-249 employees).
Nearly a quarter (23%) of SMEs are planning to invest in tech that helps drive process efficiency and automation; and the same percentage (23%) are planning to introduce new payments channels, such as mobile or QR payments, as a way of better serving their customers.
Artificial Intelligence is becoming a key strategic focus for SMEs, with half (49%) of businesses surveyed having either already integrated or planning to expand their use of either Generative AI (generating new and innovative content) or machine learning (analysing data and making predictions). For those firms embracing AI technologies, the top use cases are enhancing customer service, such as through CRM systems or virtual assistants, and to support marketing activity, for example with targeted communications or content creation.
This sense of resilience is matched by growing optimism, with almost three-quarters (73%) of SME leaders confident in the future of their company, an increase of 4 percentage points compared to this time last year. This upbeat outlook aligns with revenue forecasts – almost three-quarters (71%) expect their business to grow over the next 12 months.
Ruchi Sharma, Vice President, UK Commercial at American Express, said, “Business owners and leaders have needed to be more agile and determined than ever, and it’s encouraging to see in our latest Business Barometer how the SME community believe this is translating into more resilient businesses and stronger leaders.
“At American Express, we are proud to back these businesses by offering products, services and insight that can help them thrive into the future.”
Michelle Ovens, Director of Small Business Saturday UK, added, “Small businesses continue to face a host of macroeconomic challenges, so it is promising to hear that despite this backdrop, many are still confident in their ability to target growth and respond to setbacks.
“Developing resilience – and looking particularly at how new technology can help drive this – is one of the best things that small businesses can do to secure their long-term success. We need to rally around the UK’s 5.45 million small businesses to make sure they have as much support as possible.”
