According to research conducted by Opus Energy, the top three geographical areas in the UK where SMEs (Small and Medium Sized Enterprises) have productivity issues are:
- West Midlands
- North East
- London
To compete, SMEs there are being forced to implement a wave of changes, including:
- Introducing flexible working
- Paying employees above the average wage
- Offering incentives and perks to raise team morale
However, nearly three quarters of them also believe that working nearby similar businesses – aka clusters – would provide them with some much-needed help to improve their productivity, commercial success and competitive advantage
But, despite this, few have set up shop near other like-minded businesses
Main reasons for choosing their current location were:
- 50% – to be near where they lived
- 26% – to capitalise on nearby talent
- Only 11% – to be part of a business cluster
Nikki Flanders, COO of Opus, concluded:
- “SMEs comprise 99% of all (individual) private sector businesses
- “Clearly, there’s an appetite for greater collaboration with other similar businesses by joining a business cluster in order to benefit from the proximity to them
- “However, only a quarter are taking steps to make these ambitions a reality”