Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK SME’s report capability crunch that paints worrying picture for UK productivity growth

by April 20, 2023
April 20, 2023
UK SME’s report capability crunch that paints worrying picture for UK productivity growth

UK SME’s are reporting significantly lower capabilities in areas linked to high productivity, according to new research by Be the Business, a charity that champions small business productivity.

Measuring performance, expectations, and the actions businesses plan to take to drive growth in the future, Be the Business CEO Antony Impey says the findings ‘require a redoubling of efforts to get businesses thinking about productivity in their businesses.’
 

The Key findings of the report include: 

·      A 2nd consecutive fall in the headline Productive Business Index which is published twice annually
·      The index stands at 111.4, which is 1.2 points lower than the 5th edition published in October and 10 points lower than Q1 2022.
·      This fall was driven by a significant drop in action taken by SME leaders to improve management skills, HR practices and operational efficiency, all of which have a proven link to higher levels of productivity
·      Businesses that operate a hybrid model report higher performance and stronger capabilities than remote businesses and those operating from a dedicated work environment, like an office or factory.
·      Business leaders who regularly seek advice report significantly higher levels of business performance and activity to improve capabilities.
 
Commenting on the findings, Anthony Impey MBE, CEO of Be the Business, said: “There isn’t a secret to higher levels of business productivity. It is a code that’s already been cracked. Businesses which invest in their management skills, HR, operations and technology are stronger performers than those which don’t.
 
“It is worrying that fewer business leaders have taken action in these areas compared to last year. The sustained growth needed for a higher wage economy won’t happen without more businesses building their management skills.”
 
UK productivity has grown at an average of 0.4% per year since 2008, compared to the OECD average of 0.9%. Lower productivity significantly inhibits the ability of both the public and private sectors to offer wages that keep up with or pace ahead of inflation.

Too soon to end working from home?

The report explored the post-pandemic legacy of hybrid working and its impact on productivity. Be the Business found that businesses that have implemented a hybrid model are more likely to be working on the skills linked to higher productivity levels. In contrast, those primarily operating a remote model aren’t investing in their skills to the same extent. 
 
More than four in 10 of hybrid businesses will further develop their business strategy in the next 12 months compared to less than a third of remote businesses. A similar trend is found in planned financial forecasting activity and management skills development.
 
Anthony Impey added:  “The businesses debating a return to offices should ensure they don’t lose the productivity benefits hybrid arrangements provide. And those businesses operating entirely remotely should ensure they find opportunities to collaborate and provide a supportive environment to younger workers, both of which appear to be areas of organisational weakness.”

Advice pays 

The report also compared the responses of business leaders who regularly seek advice to those who don’t look externally for help. It found that those who regularly seek advice are more than twice as likely to report an improved financial situation compared to businesses that do not look externally. Business leaders who get advice also reported larger amounts of new employment and an increased volume of orders. 
 
Impey added: “Getting advice pays off in real and meaningful ways. Those who do so regularly show increased revenues, fuller order books and more employment. By contrast, those who don’t seek advice appear overconfident in their management skills. 
 
“There needs to be a collective effort from the business community and government to demonstrate the value of an external perspective to business productivity and performance.”

Read more:
UK SME’s report capability crunch that paints worrying picture for UK productivity growth

0
FacebookTwitterGoogle +Pinterest
previous post
Banks, Well, Are They in the Bank??
next post
Hunter Biden investigation being mishandled, ‘clear conflicts of interest’: IRS whistleblower

You may also like

Reasons Small Businesses Should Buy New Equipment

September 27, 2022

Staff shortages see UK restaurants struggle to cope...

December 5, 2022

Female business owners offered £18,000 business boost with...

August 21, 2024

Durham medical supplier clinches multi-million pound funding boost

February 7, 2025

Wetherspoons closes more pubs with dozens across Britain...

August 1, 2023

How Staff Can Strengthen HIPAA Compliance and Security

June 29, 2025

Sweatband.com founder Maz Darvish exits to launch AI-technology company, CognitionHub

September 14, 2023

Finalists for The Growth Business of the Year...

February 16, 2023

How to Enhance Your Warehouse Operations with Cutting-Edge...

March 3, 2025

Over 20 councils replace pay and display parking...

June 25, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Iran’s nuclear capabilities crushed, but regime’s desire for the bomb may persist

      June 30, 2025
    • Trump’s 24th week set to focus on ‘big, beautiful bill’ passage ahead of Independence Day deadline

      June 30, 2025
    • Trump’s new American doctrine means peace through strength has returned

      June 30, 2025
    • Entry-level jobs slump 32% amid rise of AI and growing employer costs

      June 30, 2025
    • Canada shelves digital services tax to revive US trade talks

      June 30, 2025
    • FCA to allow millions free financial support in major policy shift

      June 30, 2025

    Categories

    • Business (8,339)
    • Investing (2,081)
    • Politics (15,868)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved