Better SME connectivity would contribute over £5bn a year to local economies
New research of SME business owners has revealed that better connectivity among Manchester SMEs would contribute an extra 2.2bn a year to the local economy, with the number rising to £3.09bn for Birmingham.
With growth front of mind for SMEs, almost two thirds (63%) in Birmingham said their business could grow faster if they had access to better tech, compared to 53% of Manchester SMEs – much higher than the national average of 43%. Meanwhile, nearly half (46% in Birmingham and 48% in Manchester) think that their business could be left behind because of poor tech (compared to 39% across the country).
The analysis, conducted in partnership with Censuswide and Development Economics found that over half (53%) of Birmingham businesses, and just under half (44%) of Manchester businesses, think they could lose good employees as a result of poor connectivity.
SMEs call for more support
The research comes as SMEs explore how to manage the rising cost of doing business, as the vast majority of SME leaders in Birmingham (90%) and Manchester (82%) said they find the current economic climate difficult to navigate.
Birmingham and Manchester businesses have identified where they would like extra support:
- Almost two thirds (62%) of Birmingham SMEs felt that better connectivity would ease some of the financial pressures they are facing, with 56% of Manchester SMEs agreeing
- 54% and 46% of Birmingham and Manchester SMEs respectively said that they would welcome connectivity grants as well as guidance on how to get the most out of their connectivity
- 42% of Birmingham businesses said they would like support paying bills, rising to 48% of Manchester businesses
Three launches connectivity grants
In response, Three Business is launching a new grant scheme worth £300,000 for SMEs across both regions, with support from Birmingham and Manchester Chambers of Commerce. The grants will equip local SMEs with access to Three’s 5G network – the fastest in Birmingham and Manchester* – as well as a team of Three Business specialists. Businesses can apply to receive one of several 5G Business SIM packages, as well as 5G Business Broadband for two years.
Snehal Bhudia, director of business propositions & Go to Market, Three Business said: “Businesses frequently tell us that great connectivity is one of the biggest enablers of growth, impacting all aspects of running their business – from the experience they can provide to their customers to how happy their employees are and how well they can carry out their jobs. That’s why we’re providing connectivity grants to businesses in Birmingham, so they can focus on doing what they do best and contribute to their local economies.”
Henrietta Brealey, CEO, Greater Birmingham Chambers of Commerce said: “Birmingham’s business community is diverse, entrepreneurial and very skilled at adapting, particularly after the last few years. Three’s research shows that local businesses are highly aware of the potential for digital technology to either drive growth or risk leaving late adopters behind. But in a cost of doing business crisis, finding the cash and capacity to invest can be challenging.
“That is why we are delighted to support these grants. While work is underway to improve digital connectivity through the Digital City Programme, there’s a real need here and now to get businesses better connected. I’d encourage all Birmingham based SMEs reading this to take a look and consider applying.”
Chris Fletcher, policy director, Greater Manchester Chamber of Commerce, said: “Recent events such as Covid-19 have shown how important digital connectivity is for SMEs. Yet, SMEs suffer from poorer connectivity when compared with their large business counterparts. The implications of this divide are reduced opportunities and the inability of these businesses to develop operational resilience. For SMEs, the barrier to good connectivity is not just availability but also affordability. The huge growth in hybrid working, online meetings and ecommerce that we’ve seen over the last couple of years means that having good connectivity is vital for local companies.
“We’re delighted to be supporting Three UK with this new scheme as connectivity is a big concern for Greater Manchester businesses. Businesses will now be able to grow and take advantage of the new opportunities that are available if the tech they’re using isn’t slowing them down.”
