Social networks key to growing business say SMEs

OWNER/managers are looking to increase their online presence as they work to cut running costs and use marketing budgets more efficiently.

According to research by bank and wealth management group Kleinwort Benson, two thirds of SMEs are looking to increase their use of e-marketing in 2010 with more than half viewing an online presence as critical to their business.

The annual entrepreneurs survey shows that several measures have been introduced by owner/managers to help drive their business.

Two thirds have reduced operational costs while 53% have revised business strategies. More than 45% have worked to develop new markets.

Nearly a quarter cited capital scarcity and cash flow as the greatest threat to their business with 18% pointing to government spending cuts and regulation.

However, 60% of respondents said they were looking to expand in to other markets with new products with some 32% investing for the future by increasing headcount.

But it is an online presence that most entrepreneurs see as offering the greatest opportunity.

Arooiund 42% said they would use Linkedin, the same number Twitter, with Facebook and YouTube polling 38% and 36% respectively.

Derek Wright, Kleinwork Benson’s head of entrepreneur initiatives, said the survey’s results gave cause for great optimism.

“The widespread recognition of the need to build their online presence underlined by our latest survey does not surprise us,” he said.

“The prevailing view amongst those attending our entrepreneurs forums has for some time been that the mobile not the laptop will be the preferred device for business communications in the future led by Facebook and Apple Ecosystems.

He added: “It gives us cause for optimism and shows that the entrepreneurial spirit is in rude health.”