Pipex - Cranfield Research Gets Under the Skin of SMEs
• 46% of UK SMEs feel the Internet has raised the complexity of running a business
• Only 16% of UK SMEs feel the Internet has increased operational efficiency
• 1 in 3 UK SMEs strongly feel the Internet has made it harder to protect confidential company information
• Over 62% said the Internet has increased competition from foreign markets
Marking the first step in Pipex Business’s long-term commitment to help UK Small and Medium sized Enterprises (SMEs) prosper, the company today reveals the findings of new Pipex-commissioned Cranfield School of Management research into some of the key issues Small Businesses face today.
The research, conducted by Cranfield’s Prof Burke and Dr. Hussels, provides insight into many issues including the impact of the Internet on productivity, work-life balance, data security and start-up motivators.
It reveals that British SMEs have a love-hate relationship with the Internet. Whilst almost all have embraced the Internet for their business; (97% have email, 94% broadband and 84% a website) 60% do not feel that the Internet has increased their operational efficiency. 46%, in fact, feel that the Internet has raised the complexity of running their business.
The research finds that the Internet has forced SME managers to raise their game and made their job more challenging. Ironically this has occurred mainly because of the popularity of the Internet among both consumers and SMEs which has resulted in a more fiercely competitive market as well as more choosy customers.
Co-author of the research and leading SME academic, Professor Andrew Burke of Cranfield School of Management’s Bettany Centre for Entrepreneurial Performance, says: “There is no question that the Internet has enhanced the performance of SMEs by enabling them to be more innovative, more up to speed, negotiate better with suppliers, make greater use of outsourcing and to operate more flexible working hours. The sting in the tail is that the uptake in Internet use by SMEs has been so dramatic that most now share these same benefits and so few can garner a competitive advantage as a result. It’s like a game of golf where a new superior driver becomes available that can hit the ball an extra thirty yards. If everyone uses one then eventually no player has an advantage. At the same time no player can afford not to use one or they would be thirty yards behind everyone else after tee off. It simply becomes necessary in order to compete”.
“This depth of research into how the Internet has changed working practices and the environment in which SMEs operate has, surprisingly, not been seen since the Internet really took off with Web2.0 in the UK. In order for the UK to support its 4.4 million small and medium-sized businesses, we need to understand their concerns, frustrations, barriers and enablers.”
SMEs also feel that broadband suppliers use complicated technological language, that the Internet hinders direct contact with customers and other businesses and that the sheer volume of information sources available online is frustrating and time-consuming. Responding to the research, Pipex today launches a bespoke, one-stop-shop SME business information portal, with tailored, up-to-date news feeds, articles and commentary, top tips from leading industry insiders, a complete business resource directory provided by small business experts and soon, a forum for SME discussion.
Mary Turner, Tiscali UK CEO, says: “Tiscali is one of the top 3 players in the growing DSL-based broadband industry in the UK and we have been immensely successful at meeting the needs of our consumer customers. We are determined to deliver against the needs in the under-served Small Business market and see “Pipex Business” as the ideal brand for delivering this.
“Pipex Business is determined to understand and respond to the ongoing challenges that Small Businesses face, increasing choice, value and competition in this market and we are putting this goal at the heart of our strategy. In addition to the research, we have taken the views of the main experts in this sector. Not only is the Pipex portal the only site a Small Business now needs for all its news, facts and advice, but it will also soon provide a forum for businesses to share information and experience and so offers the basis for building a community, not just a broadband connection.”
As a further response to the research conducted, Pipex Business today also launches its new portfolio of Small Business-focused broadband services. Designed with the specific needs of the Small Businesses in mind, the product portfolio reflects the wide range and sizes of business in this sector.