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Businesses Out Of Touch With Their Employees

Common perceptions regarding the productivity of home workers challenged in annual UK small business investigation

LONDON, 18th January 2010 Businesses are failing to recognise the link between productivity, innovation and competitive advantage, according to a comprehensive national study across more than 1200[1] office-based small and medium businesses (SMBs) in the UK.

The survey revealed that over half (55%) of employers failed to see that remote working policies could increase employee productivity, for example by allowing staff to utilise more of their day or by enabling greater opportunity to concentrate on thought-intensive tasks.

oneDrum (www.oneDrum.com), the UK start-up which commissioned the research, today warns SMBs that they will lose competitive advantage if they do not streamline work processes and deploy flexible working policies to increase staff productivity. According to oneDrum CEO Jasper Westaway, a more productive workforce will have more time and energy for creative and strategic thinking, leading in turn to greater innovation and competitive advantage.

Key Findings:

·             Over 80% of employees felt they would be productive when working from home or remotely because they would be less distracted by meeting interruptions allowing them to spend more time on particular projects.

·             One quarter (24%) of employees interviewed stated that they found themselves working from home more this year than they did last year.

·             If this trend were extrapolated, then in less than five years we could see 100% of employees of office-based SMBs in the UK working from home at least part of the time.

·             Nearly three quarters (72%) of employers revealed that they offer staff the option to work from home, but 61% of employees never do.

·             Even though one third (33%) of employees said they could do all or most of their job from home.

·             Over half (55%) of employers failed to see that flexible working policies could increase employee productivity.

The top reasons quoted for not deploying a flexible working policy were:

·          “Employees need access to documents that aren’t accessible outside of the office”

·         “We do not have the necessary technology in place do so”.

Phil Flaxton, chief executive at Work Wise UK, commented: Employers looking to get the most from their workforce need to consider smarter and more flexible ways of working. There are a number of technologies that support a productive home working environment, the benefits of which result in a more motivated and productive work force, with a healthier work life balance.

Graham Jones, Internet Psychologist, added: “After earning money, the most important reason for going to work is social – being with other people. What this means for companies trying to benefit from the flexibility of remote working is the need for an efficient system of sharing documents and easy online working, so that employees can then spend the remainder of their time chatting with each other in online social networking groups or even on the phone. In the past, remote document sharing systems were cumbersome and time consuming – and that meant people who worked from home felt isolated as they didn’t have time to connect with their colleagues. Using flexible and easy-to-use online document sharing systems to free-up time so people can socialise with their work colleagues is an essential component in making remote working possible.”

Jasper Westaway, founder and CEO of oneDrum, commented: “Employers need to streamline processes to work staff smarter, not harder. By offering a more flexible working policy, employers make their staff more productive, allowing room for more creative and strategic thinking – two essential catalysts for innovation. Where there is strength in strategy and innovation, there is healthy competitive advantage and a more motivated workforce.

“Many respondents stated that working from home wasn’t an option because they needed access to documents and colleagues. With the range of collaboration technologies available to us today, and the Digital Economy Bill pledge for broadband in every home by 2012, this barrier to remote working should be removed. However, SMBs will need to identify solutions that truly meet their needs and budgets, as well as trust both the technology and their employees to treat their data with care and attention,” Westaway continued.

Further Findings:

·             33% of employees interviewed could do all or most of their job from home, while three quarters (75%) answered that they could do at least part of their job from home.

·             SMB office workers in London and the South East are more likely to work from home regularly than their counterparts in the rest of the UK, while those in Wales and Northern Ireland are most likely to work from home at least some of the time (see map for regional breakdown)

·             To review the study in more detail, download the analysis report from the oneDrum website: www.onedrum.com.

Rules of Engagement: Webtrends Social Media Consumer Omnibus

Rules of Engagement: Webtrends Social Media Consumer Omnibus

At a glance – huge opportunity for conversations, not just pitches

·         Three in four (85% of under 35s) are open to brands being on social media
·         One in five believe brand favourability would rise through social media interaction
·         BUT… when it happens… three in four say they think more highly of the brand
·         Half of Twitter users and a third of Facebook users have interacted with a brand
·         So, there is a huge opportunity to converse with customers and prospects
·         BUT… consumers want a conversation, they don’t want to be pitched constantly
·         In fact, half of social media users would leave a site if it were too commercial

The scope of the opportunity – an introduction

In the first wave of marketing on the internet companies published information about themselves and promoted their sites through advertising and search.
Today, this still holds true but, in addition, the web is changing fundamentally in to a two way medium where consumers converse with one another and brands. Businesses which do not get to grips with the opportunities and challenges social media offers run the risk of missing out on the huge potential. Web 2.0 offers for brands to engage with their online audience to influence prospects, win clients over from rivals as well as retain their existing customer base.

To get a grip on the scope of the opportunity and how it can best be used, WebTrends has carried out research which asked consumers the questions businesses really want answered – what do they think of brands in social media and what type of interaction works best for them.
The results make for very interesting reading. Ultimately there is a huge opportunity to reach out to a vast, engaged audience. However, brands social media users reveal, need to listen and learn and participate in a two-way conversation.

The key is to converse and communicate, not to simply market.

Steve Berry, Digital Publicity Manager, Channel 4 comments:

“There are many examples of brands demonstrating the ‘epic fail’ in social media but what they all have in common is an ill thought-out strategy for engagement. All too often brands are devoting inadequate resource, or entrusting to the likes of interns, their activities on these platforms.

Social networks are more-or-less perceived as meritocracies where ‘social capital’ has to be earned and where the individual enters with an equivalent standing to any other. Personality, activity, impact and individuality all contribute to this status (see emerging digital footprint and social currency tools such as QDOS and Whuffie). As does popularity, which allows brands to trade upon their offline status and enter into the conversation at an advantage.

Yet when a brand surfaces, there is a tendency to adopt a corporate rather than an individual identity, which can be off-putting to the consumer. To appear monolithic and faceless (on Facebook?) or to hide behind a representative logo is a huge missed opportunity. Contrary to a lack of resource, applying the full force of a homogenous communications team to networks that function at a social level can have a similarly negative effect.”

THE ART OF CONVERSATION

Social media faux-pas
Habitat certainly found this out when it debuted on Twitter with countless offers scattered around the service through inappropriate use of hashtags (such as #iranelection) which meant the messages were seen by many but also widely deplored. The brand was forced to rethink its strategy and apologise.
Other brands have failed too. Ryan Air’s rudeness to a blogger, who was basically told to go and get a life and leave the airline alone, got the no-frills airline a heap of bad publicity. Primark staff comments about ‘pikey’ customers led to similar outrage and another major retailer has been accused of posing as customers as they blog about the brand in glowing terms.
At the same time, though, many more brands are making positive steps and getting early success in set up a two way dialogue with consumers

Engaging influencers
For the recent launch of the Insight, a hybrid electric car, Honda decided to engage the social media community for the first time. They found the most influential people who were talking online about cars and the environment. Honda invited them for test drives – ‘experience’ days to which they’d usually only invite journalists – they ended up with good content online, with bloggers taking their own pictures and video footage. Engaging with Social media adds to the pressure to keep messaging consistent across a growing number of channels. But Honda established more contact with a wider audience in the UK, the US and Japan.

The Research – the answers social media users gave us

Q Are Brands Welcome?

A Three in four (and 85% of under 35s) say YES to brands

It is the sixty four million dollar questions brands are shying away from asking consumers directly, so WebTrends has done it for them. The result? A resounding ‘yes’ for three in four web users.

This in encouraging in itself, but perhaps more interestingly, the figure is skewed by the over 55 age group of whom only around half believe social media is an appropriate channel for brands. Looking at age groups below the silver surfers and there is almost uniform agreement that brands should be engaging and learning more about consumers through social media – a view supported by 88% of 18-24 year olds and 85% within the 25-34 year old bracket.

Q What should brands be doing?

A Listen, learn, service and influence. Don’t preach

The research not only established overwhelming acceptance of brands in social media, it also asked the crucial question of how businesses should be utilising, rather than alienating, this support?
Specifically the research shows that the more immersed in social media a web user is, the more they expect brands to be engaging with web users through the channel.
More than half the people who use Twitter every day expect brands to be using social media to understand the customers, better service those customers, involve users in the design for future goods and services, discuss market issues and bring attention to new products and initiatives.
The latter point is crucial, as part of a conversation with a brand, bringing attention to new launches and initiatives is accepted but, in the main, consumers were clear they want brands to listen, learn and service rather than simply bombard them with sales messages.

social-media

Q How do users feel about brand contact?

A Three in four consumers rate brands more favourably

It is mainly early adopters and progressive brands that have reached out to social media users and the early feedback is it can work really well.
Half of Twitter users reveal a brand has successful interacted with them through social media, compared to 31% of Facebook users.
Of those who have interacted in some way with a brand over social media, three in four reveal they think more highly of the brand.

Perhaps the most important figure is that although one in five social media users (19%) predict they would think more highly of a brand they interact with on a social media site, for those who do interact with brands the approval rating rises to three in four (74%).
So clearly users are more favourable towards brands that reach out to them on social media than they themselves initially thought they would be.

Q Does this mean social media will take over other channels? Can I get pitching now?

A Actually, email is still the preferred contact method for marketing messages

Despite all the findings which support that social network users are open to interacting with brands, striking up a conversation cold online should not be taken for granted. In fact, only 8% of users chose the channel as their preferred point of contact for marketing communications – this rose to 24% for 18-24 year olds and 11% for 25-34 year olds.
Instead, as one may imagine, email is still far and away the consumer’s preferred method of receiving marketing communications, progressing steadily through the age groups from 55% for 18-24 year olds to 64% for 45-54 year olds.
Of course, because people prefer an email it does not mean they are against social media interaction but rather that relationships need to be worked on first. Also, social media conversations have to be two-way and so are very different in nature from traditional ‘push’ marketing email efforts, hence it would appear web users prefer to be conversed with in social media and pitched to via email (a channel they have long become accustomed to receiving offers and promotions on).
It is likely this distinction will be eroded as new services, such as Google Chrome, being to amalgamate social media messages, IM, Skype and email within a single screen.

Q Is there a potential downside?

A Social media users appear wary of brands being too ‘salesy’.

While nearly three in four web users say social media can help brands understand their audiences it should be remembered that ‘understanding’ is a two way conversation.
Businesses which just pump out sales offers will need to be aware that too much advertising and blatant commercialisation of social media sites is a concern for users – 39% complain there is too much advertising on such sites and half of those surveyed revealed they would leave a social networking site if it became too commercial.

Q What is the size of the opportunity?

A Vast, more than three quarters of your likely target audience

Social networking has moved beyond the initial early adopter stage and passed the test of whether it is little more than a fad. More than two thirds of web users of all ages use Facebook ‘sometimes’, with 80% of 18-24 and 76% 25-34 year olds using the site every week.
Interestingly, the site is not just the preserve of the young, more than a quarter of silver surfers use the site weekly and nearly half (48%) use it sometimes. Among the social network sites, it is arguably the service with the widest appeal among all age groups.

On the other hand, Twitter has massive popular appeal, with growth of more than 1000% each month recorded this Spring, it is a more recent service than Facebook and so is still catching up in terms of overall subscribers and regular users.
While around a third of web users will log on to Facebook daily, only 3% will check out Twitter every day. The micro blogging site is also more geared towards younger web users. Nearly a quarter of 25-34 year olds (23%) log on once a week, while just under half of 25-34 and 35-44 year olds (44% and 43% respectively) will log on ‘sometimes’, compared to 21% of over 55s.

If Facebook has the most widespread following and Twitter appeals mostly to 25 to 44 year olds, YouTube is the most popular destination for the youth, although use of the video service is sporadic. 96% of 18-24 year olds use the site but only a quarter do so every day. Of all net users 74% will sometimes use YouTube but only 9% every day.

Comment: What does this mean for you?

Brands needs to become more ‘agile’
Christian Howes, Digital Solutions Architect at WebTrends

“Social media provides a massive opportunity, the problem with most brands is they’re not agile enough to set up and maintain a useful social media presence so they miss out on much of the benefits.
“It’s something the big brands are really suffering with and they’re going to lose out to nimbler, quicker rivals. When I looked at the airlines recently BA had something like 10,000 followers on Twitter but Jet Blue, the American no-frills carrier, had more than a million. BA were pumping out corporate messages while Jet Blue was actually getting involved in a dialogue and using it as an extension of their customer service.
“To get the most out of social media you need to be agile, and you have to listen and serve customers, you can’t just keep pumping out announcements about yourself. You can’t be ‘preachy’, it just doesn’t work, no matter how big your brand is.
“People want to get involved in conversations with brands they like – I know I get a huge buzz out of a brand I favour following me on Twitter –but it’s got to be a conversation, it can’t be one way.”

Fear could be holding brands back
Amber Naslund, Director of Community, Radian 6

“Companies are often fearful that opening up the lines of dialogue means they’re increasing their risk for criticism or negativity. Truth is, social media didn’t invent criticism, it’s just that people now have more and faster tools with which to share their opinions. The businesses that look at this as an opportunity to improve, instead of a reason to hide, are garnering increased trust and appreciation of their customers.
Expectations are changing for companies. We want to interact with businesses as easily as we do our friends or family or colleagues online. We’re asking companies to talk to us like people, and to give their communities and customers mechanisms to talk back.

Businesses that put themselves inside and among the communities they serve are better able to capture and keep fleeting attentions. And we as customers like feeling that, no matter the size of the business, they care enough to have real conversations with us.”

More and more small businesses opt for secure payment processing

More and more small businesses opt for secure payment processing

kashflow
Secure payment processing is fast becoming the favoured option for moving money in the SME sector, according to accounting software developers, KashFlow (www.kashflow.co.uk) whose users have just notched up their millionth integrated transaction with leading global payment processor, PayPal.

No longer associated solely with eBay, PayPal allows even the smallest of businesses to exchange money quickly and efficiently and it provides the added security that any transaction with a mismatch of credit card or debit card details will be declined automatically.

KashFlow was the first accounting software system to integrate with PayPal in a move that effectively provides small businesses with a complete and affordable automated service for processing payments and managing the accounts. Small businesses using KashFlow’s PayPal Importer service can retrieve details of sales, customers, purchases and suppliers automatically from their PayPal accounts saving them from the time consuming and laborious task of manual data entry.

In addition, the system allows users to create invoices that include a PayPal payment option so customers can simply press the button and they are automatically taken to a page that shows details of the outstanding amount, making payment easier.

WildAx Motorhomes uses KashFlow online accounting software and the PayPal data import service extensively. The company sells from its own website (www.wildaxmotorhomes.com) and through eBay and finds that the automatic transfer of customers’ details ‘makes things much quicker.’

Duncan Wildman, Managing Director said: “Because we are able to automatically import transactions from PayPal into KashFlow, we are able to capture all of our customers’ information without the need for any manual data entry. This removes the risk of mistakes creeping in as there is no need to re-type any of the details.”

Duncan continued: “KashFlow is a very good product for us. It’s easy to use and you don’t need an accounts background to pick it up.”

Duane Jackson, CEO of KashFlow said: “More and more small businesses are relying on the integration between KashFlow and PayPal to increase productivity and create efficiencies.”

KashFlow now integrates with 22 separate applications making it the most ‘connected’ accounting software for micro and small enterprises, on the market.

Actinic Survey of Ecommerce Christmas Sales Shows 2009 Ended on a High Note: Orders up by over 50% on 2008

A survey conducted by ecommerce specialist Actinic (www.actinic.co.uk) has backed up positive
predictions for prosperous online Christmas trading for 2009.

In Actinic’s seventh annual Christmas poll of small and medium businesses selling online, respondents reported an average 51% increase in order volume for November and December 2009 compared with 2008
figures.

The average turnover figures were also positive with a 42% increase in revenue on 2008 though growth had slowed compared to last year’s 48% over 2008. This trend highlights the increasing price sensitivity as shoppers continue to compare prices and seek out bargains . Sean McMenemy from www.arkwildlife.co.uk suggested, “In tough times, don’t
cut back on advertising and marketing, potential customers shop around more during hard times, so don’t miss this opportunity.”

Nick Kington, managing director at Actinic commented, “This is another impressive performance by online sellers in the SME market with many Actinic customers weathering the economic climate and reporting healthy increases in both order volumes and revenue. Some of December’s larger value item purchases might be attributed to customers wanting to benefit from the 15% VAT rate before its return to 17.5% this month. Only time will tell either way.”

The research also highlighted shoppers were leaving their purchasing decisions until as late as possible with the busiest purchasing period being the first two weeks in December in comparison to the last week in November as experienced in 2008.

Mark Lowery of Lomo Watersport (www.ewetsuits.com) a Glasgow-based manufacturer of wetsuits and watersports equipment commented, “We have noticed that in 2009 people are more confident with ordering later in the Christmas period and still having it delivered in time. Last year orders started to tail off around the end of the second week in December. This year the reduction was a whole week later. Courier services are becoming more ecommerce oriented and people are now no longer surprised when their goods turn up next day…. They expect it!”

Tips from web retailers

When asked what their top tips were for making the most from their online store in tough times the overall consensus for a successful Christmas trading was summarised by Darren Beaumont from www.casupply.co.uk: “Keep your site clean, simple and most of all provide clear information on deliveries, payments and contact details.”

Darren Guppy of www.golfteewarehouse.co.uk added, “If business is slow use the time to work on the site design, adding unique content and making improvements to product details and descriptions to make them more SEO friendly, so when the economic climate improves you are better positioned to make the most of it.”

Other web retailers recommended specialising in a niche and focusing on your SEO performance. David Sewell from www.cottonpatch.co.uk is an example of this tactic: “We sell fabric, threads and haberdashery. We had an order for some of our threads from a Russian model maker to use in the rigging of very accurate model ships. And we also had an order from English Heritage who wanted some of our products to help conserve valuable books from flood damage.”

Not cutting back on marketing, especially to existing customers, is a popular tip. For example, Richard Phillips of www.thesoapkitchen.co.uk suggested, “Keep customers interested. Market to them with coupon codes and offers.”

And of course offering service that goes the extra mile is a big winner with customers as this story from Peter Urwin of www.sportsgalleries.com shows. “On Friday 18th December we received an order from Scotland for a print which is warehoused in USA and is needed in time to get it framed and delivered for Christmas. So it must be delivered by 22nd. As luck would have it the artist’s wife was in the USA and travelling the next day to – guess where – Edinburgh. She took the print with her and the
customer had it in time.”

Penny Wise Pound Foolish

Nearly 80% of UK CEOs and FDs believe their business is at risk during this recession yet few realise that this risk includes potential litigation following cost cutting measures

Nearly 80% of UK CEOs and FDs believe that the recession has increased the number of risks that their businesses face and over 50% of them have sought to reduce costs or share financial risk since the beginning of 2008. However 75% of these businesses do not understand that cost cutting exercises such as outsourcing have actually increased their risk of being drawn into litigation which can be both difficult and expensive.

In a survey commissioned by the Forensic Accounting Team at BDO LLP to look closer at the likely causes of the increase in litigation associated with a recession, it was also found that half of UK companies have sought to reduce their costs by increasing their use of subcontractors and freelancers, by outsourcing activities such as support services or relocating facilities offshore and granting product licenses.

Almost half of these companies believe that performance and conduct of these subcontractors, franchisees or sales agents could in fact damage the company’s market reputation or brand resulting from poor performance by subcontractors; reliance on outsourcers interrupting the quality or continuity of supply or commercial harm arising from damage to intellectual property or relationships with key customers. And these are all issues that are frequently the basis for disputes that can end in damaging and expensive litigation.

Three quarters of all businesses surveyed have sought to cut costs by reducing headcount, either through natural attrition – by not replacing roles – or through formal redundancy programmes.

Mike Mason, Director of Forensic Accounting at the Southampton office of BDO LLP says:
“Few businesses have managed to come through the challenging economic environment of the last 18 months entirely unscathed. The speed and extent of the recession has forced many to make tough choices and to find innovative ways to cut costs and manage their business. It is evident from some of the disputes that we have been instructed upon that businesses often expose themselves to enormous commercial risks which can result in disputes and litigation.”

Mike Mason, Director of Forensic Accounting at the Southampton office of BDO LLP says:"Few businesses have managed to come through the challenging economic environment of the last 18 months entirely unscathed."

In times of recession businesses run an increased risk of becoming embroiled in a wide range of disputes as contractual non performance and onerous contracts have a more significant impact on profits and the diverging interests of commercial partners and shareholders come into sharper focus.


Mason adds: “The depth and speed of the recession did not herald the anticipated upturn in disputes as parties were mindful of the cost and operational disruption that often accompanies such disputes. With recovery on the horizon we are beginning to see an increase in claims as contractual arrangements that are not delivering in line with expectations are coming under intense and critical scrutiny as businesses take stock of the merits of bringing a claim. Many of the disputes that we are being instructed upon arise from the need to obtain independent accountancy advice where non core businesses have been sold and one of the parties has sought to renegotiate the consideration via a net asset clause”.

- Ends -
About the Research:
The full findings of the survey and corresponding analysis can be found in the research report published by BDO on 14th December 2009 entitled ‘Penny Wise, Pound Foolish’.
BDO commissioned ICM Research to carry out a survey of CEOs and Finance Directors at 201 companies of varying size across the UK in September 2009.
For further editorial information about Logical Creative Marketing please contact Zoe Mitchell on 0845 345 6969 or email zoe@lcm.co.uk

Half of UK Shoppers Look for Green Practices When Choosing Retailers

More than half of Christmas shoppers now look for ‘green’ credentials when choosing online retailers, according to research released by 1&1, www.1and1.co.uk, the world’s largest web host.  The survey of 1500 consumers found that 59 per cent of consumers are more likely to buy if a retailer uses eco-friendly practices such as recycling and using renewable energy.  The data reveals that 1 in 4 consumers now expect retailers to use eco-friendly services across their operation as well as recycling and reducing physical waste.  The use of renewable electricity to power their website is viewed as important as using less polluting vehicles.  The survey reveals that 37 per cent of Britons now expect online retailers to be reducing their environmental impact to the same degree as high-street stores.

Whilst many supermarkets and high-street stores loudly champion their eco-friendly policies, it would appear that consumers now have equivalent expectations for the online retailers they use.  1&1′s ‘Greener Shopping Survey’(1) reveals that most Christmas shoppers will consider the environment impact of their purchases.  Over half of consumers (59 per cent) now consider a retailer’s use of ‘green’ practices within their buying decision, and nearly three quarters (72 per cent) believe that online retailers have a responsibility to act.  Whilst 37 per cent of shoppers expect online retailers to tackle the issue to the same degree as high street stores, 1 in 5 say they are more likely to buy from a retailer that explains its carbon usage on its website.

Consumers now expect online stores to adopt a wide range of environmentally responsible practices.  As well as the more obvious efforts such as recycled packaging (44 per cent) and reduced packaging (43 per cent), and eco friendly vehicles (24 per cent), 1 in 4 (24 per cent) of online shoppers seek retailers who use green services across their operation such as renewable electricity.  1 in 4 is more likely to buy from a retailer which powers its website and servers with renewable energy, the same proportion that look for the use of eco-friendly vehicles.  The use of renewable energy by online retailers is seen by 20 per cent of shoppers as equal in important to the use of recycled packaging.

Oliver Mauss, CEO 1&1 Internet Ltd. said, "As more of us think about our personal impact on the environment, there has been a surge in demand for greener practices in retail. A significant proportion of British consumers now expect all types of retailer to power their operations with renewable energy, and for online stores that should start with their website".

Interestingly, demand for ‘greener’ retailers appears to vary with gender, with women on average more concerned about retailers’ efforts.  For example, 46 per of women are more likely to buy from a retailer that uses recycled packaging compared to 36 per cent of men.  Significantly, all age groups appear to be equally aware and committed on the issue of green credentials.  Londoners are most influenced by eco-friendly practices (70 per cent), whilst residents of Yorkshire (49 per cent) are by far the least.

The research reveals that whilst online shopping is undoubtedly a pleasure for many, some shoppers struggle with “eco-guilt” concerning the impact of their online purchases.  1 in 10 Britons admit to weighing-up the environmental cost of each online purchase they make.  Levels of guilt on the issue were once again highest in London (13 per cent) and lowest in Yorkshire (3 per cent).

The data lends weight to the theory that online retailers can financially benefit from using more eco-friendly services across their operation.  For example, large web hosting providers such as 1&1 offer firms shared hosting and eCommerce packages (from £4.99/month+VAT) and dedicated servers (from £29.99/month) that are powered with renewable energy and leverage energy-saving technologies.  In response to consumer attitudes, 1&1 now provides its business users with a logo they can display on their website to indicate that it uses ‘green hosting’.  In such a way, consumers can be made aware that an online retailer is committed to lowering their environmental impact from their technical infrastructure upwards.

Mauss added, “Green-IT is no longer just a concern for multi-national retailers.  By implementing more eco-friendly technologies such as green-hosting, smart retailers of any size can demonstrate their effort to lower environmental impact and can bolster customer loyalty and spend in doing so”.

For more information on 1&1 hosting visit the website at www.1and1.co.uk <http://www.1and1.co.uk/>

(1) 1581 UK adults surveyed by OpinionMatters via online feedback form

Recession driving small business innovation

Recession driving small business innovation

FSB-logo
The majority of small firms have got through the recession by innovating or improving their existing proposition, research has found.

According to a survey by the Federation of Small Businesses (FSB) and ICM, which canvassed almost 10,000 small companies, more than half had escaped the worst effects of the recession by innovating, creating new products and services.

The survey found that 53% of businesses had introduced new or improved products and services last year, while 51% intend to continue innovating next year. Almost half said they expected to increase their customer base next year, while one in five are looking to hire more people.

Read the rest of the feature on the Growing Business website.

© Crimson Business Ltd. 2009

‘Leaner’ small firms optimistic for year ahead

More than a quarter of small business owners believe their companies are in a stronger position now than they were this time last year, a study has shown.

A survey of nearly 3,000 small firms conducted by telecommunications firm O2 found that many had streamlined their operations over the past year, leaving them well placed to capitalise on forecasted economic growth in 2010.

Nearly a third of small business owners said they felt more confident about their businesses’ performance than they did at this point in 2008.

Read the rest of this feature on the Growing Business website.

© Crimson Business Ltd. 2009

Small firms face rising costs in 2010

Small firms face rising costs in 2010

More-Than-Logo
The cost of running a small business looks set to rise sharply in the New Year, entrepreneurs have been warned.

According to the quarterly inflation index published by insurance company MORE TH>N BUSINESS, small firms’ running costs will increase significantly in 2010 on the back of rising commodity prices.

The Business Inflation Guide, developed in association with Warwick Business School, measures a basket of 20 of the most significant costs for small businesses, ranging from overheads to professional services such as advertising and accountancy fees.

Read the rest of this feature on the Growing Business website.

© Crimson Business Ltd. 2009