SMEs failing to support communities claims Rotary

SMEs in the Midlands are missing a trick when it comes to supporting their local community, a new report has claimed.

The report, prepared by Rotary International in Great Britain and Ireland, claims that almost half (47%) of Midlands SMEs do not support their local community, despite the fact that most recognise community relations increases staff morale (65%) and makes their business more attractive to potential customers (83%)  and employees (63%).

The RIBI ‘Community Matters’ report, which surveyed more than 500 senior managers in SMEs and 1,700 members of the general public across the UK, also found that companies are failing to understand the business opportunities that local community engagement offer.

It claimed more than a third (35%) thought ‘giving back’ was the main benefit, with just one in 10 (11%) spotting the opportunity for business development.

John Minhinick, RIBI President, said: “With more than half (59%) of consumers in Birmingham are more likely to buy from a local business that supports local organisations, businesses here have a real opportunity to benefit from their community support.

“While ‘giving back’ is an important element, businesses are missing out on the other commercial benefits such as raising brand awareness, meeting new contacts and employee development. Choosing a route that makes business sense will result in a stronger and more long-term commitment to the chosen cause, thereby benefitting all those involved.”

While almost half (47%) of SMEs in the Midlands do not support the community in any way, 58% of respondents said they thought their company could do more, with some citing lack of money and time as the main barriers (69% and 51% respectively).

“Rotary provides a link between businesses and the community, enabling companies of all sizes and functions to get involved in local projects while ensuring they maximise the opportunities such engagement brings,” added Mr Minhinick.

“If businesses have a better understanding of how they can make their community support work for them on a commercial basis, then any money outlaid on a particular cause can be justified and will result in a more planned, strategic and beneficial commitment.”

The research also showed the public believes businesses should be responsible for filling funding gaps left by the government and other third parties post-recession. The business response post-recession has been positive, with almost a fifth (17%) increasing their community support.