Amazon U.K. released its latest survey of small business (SMB) sentiment in the country, finding an increase in confidence the company attributes to greater technology adoption.
Reports in Business Leader covered the SME Growth Tracker published last week, conducted quarterly by Capital Economics and commissioned by Amazon U.K. and Enterprise Nation. Analysis is based off of YouGov survey results of 1,000 small business respondents.
According to the report, individual business performance was up 1 point; U.K. economic confidence was up 6 points. The survey posted its lowest-ever levels of economic confidence immediately following the snap election in June of last year, but has recorded gradual recovery each quarter since, reports said.
Overall, small business revenues were up 1 percent, and employment was up 0.3 percent. Entrepreneurs said they expect revenue and jobs growth to accelerate in the coming year by 1.5 percent and 0.9 percent, respectively.
“With business indicators reflecting a rising confidence among SMEs, today’s results suggest that businesses are feeling the benefits of digital technology, helping them to connect to a wider customer base,” said Enterprise Nation Founder Emma Jones MBE.
The tracker found company websites to be the second-most common channel through which SMBs sell online, followed by email. More than half of SMBs said they are using a company website for eCommerce, with adoption expected to climb to more than 65 percent over the next year. Small businesses also recorded an increase in use of third-party social media platforms for marketing purposes. Companies that use eCommerce are more likely to expect revenue increases over the next year, the survey found.
Still, small businesses are facing significant challenges. Manufacturing was the only industry that expected conditions to improve, according to the survey.
“As global economic uncertainty continues to pose a threat to stable business conditions, it is essential that SMEs adopt agile and innovative ways of working to stay competitive,” Jones added.