This comes as research carried out among 500 SMEs revealed that almost half do not believe they will grow in the next two years, not only due to the challenging economic outlook, but also a lack of technical expertise. And 43% feel that their lack of technical knowledge will limit their ability to expand in the coming years.
This lack of optimism about scaling up is also due to the challenging economic climate (38%) and competition within the industry (35%). Consumers buying less (37%) and lack of marketing funds (21%) were other top barriers noted by the SMBs surveyed.
PayPal’s 2024 Business Change Report also found that 62% agreed that online sales are key to expanding their organization, but 31% do not believe they have the technical skills to enable their business to thrive in this space. . Almost a third (32%) would not feel confident in their ability to sell internationally.
Another 28% lack faith in their understanding of online and social media marketing, while 24% don’t feel they know enough about how to ensure their website is safe for customers.
More than three in 10 (31%) would be concerned about their ability to manage and protect customer information in an environment where cybersecurity is on the rise.
And 17% are stumped when it comes to knowing what payment methods to offer, such as installment payment options like buy now, pay later or digital wallets.
Vincent Belloc, CEO of PayPal UK, said: “In today’s dynamic business landscape, growth is not just a want but a need.
“However, it comes with its own set of challenges. As consumer purchasing behaviors change and technologies advance, keeping pace can be daunting. However, our research indicates a promising outlook on the horizon.”
The research found that 73% have seen changes in consumer behavior over the past two years, including using more online shopping (23%), demands for discounts (32%) and more online “abandoned baskets.” (13%). But 69% believe that if their company can overcome barriers like these, it has the potential to prosper.
Some of the top goals SMEs strive for include increasing revenue (61%), improving customer loyalty (27%), and expanding their e-commerce operations (14%). However, 32% said their profits are lower than originally planned and 23% expect to operate on a larger scale than they currently do.
However, there is hope on the horizon for 2024, as half of those surveyed via OnePoll plan to increase their marketing efforts over the next year to help drive expansion.
More than half of SME owners (57%) also believe that investing in AI technology and skills will be key to their ability to adapt to the rapidly advancing technology landscape. While 41% plan to invest more in online sales.
Vincent Belloc added: “We are delighted to see many UK small business owners recognizing the growth opportunities and actively planning expansion in 2024.
“We are confident that unlocking the power of online sales is key to driving business growth. That’s why we’re excited to present Complete PayPal Paymentsdesigned to help SMEs optimize their online payment capabilities.”