Data Behind the Initiative

SMEs contribute more than £2 trillion to the UK economy. Those in the WMMC have an untapped opportunity to improve their business efficiency and productivity through better use of technology. Done correctly, this can also support local IT resellers.

Enabling small businesses to make better investments in technology can provide the following:

• Increased cash in the local economy
• Increased digital opportunities
• Increased productivity
• A stronger digital ecosystem
• Increased attractiveness to overseas investors

These substantive benefits can be realised by strengthening the West Midlands technology supply chain. Today, most small businesses buy their technology from high-profile, national and international providers like BT, Vodafone and Microsoft. This is understandable since these suppliers provide all the solutions that they need. The problem is that they are unable to offer the consultative sales experience that smaller businesses require to understand how they should invest and how it should be integrated into the equipment that they already have. This is probably why 92% of SMEs are not satisfied with the sales service offered by the large national providers.

There are 423 technology resellers trading in the region which are able to provide what the small firms need, but almost half of small businesses know that they exist but not where to find them. The remainder of small businesses simply don’t that they exist.

Growing SMEs cite heavy dependence on technology and most invest between 4% and 10% of their turnover on technology. With a total turnover of £144.22bn, spend within the Midlands sits therefore at £5.77bn and £14.42bn and it makes sense that this is spent in a way which benefits the local economy.

You can see the full report here.