A lack of technical expertise is a major barrier to growth for more than 40 per cent of SMEs surveyed by PayPal UK.
According to the company’s 2024 Business of Change Annual Report, 64 per cent of small business owners admit they have not expanded in the last three years.
With 43 per cent citing technical know-how as a missing link, 57 per cent recognise that unlocking the power of technology and AI skills is pivotal for sustained expansion.
At the same time the survey discovered a rising sense of optimism – 69 per cent say their business has a potential to grow if they can overcome certain barriers.
Nearly half (47 per cent) of UK small businesses plan on scaling up in the next one to two years.
The report highlights other key barriers that firms consider to be of paramount concern including the challenging economic landscape (38 per cent), consumers purchasing less (37 per cent) and competition in the industry (35 per cent).
Almost 80 per cent of companies believe that digital transformation will be key to their future growth while indicating that in 2024 they will be investing in areas such as improving their online and social media sales.
A majority (57 per cent) of SME owners recognise that unlocking the power of technology and AI skills is vital for sustained long-term growth.
Almost half (49 per cent) of UK SMEs surveyed also believe that giving shoppers more choice in how they pay will be important in helping them turn prospects into customers and grow sales.
Vincent Belloc, Managing Director of PayPal UK, commented: “With technology evolving rapidly, staying ahead in business can be tough.
“Managing the complexities of acquiring new customers locally and internationally, and managing fraud and disputes add to the challenge.
“Yet it’s promising that many British small business owners are aware of the necessary changes for scaling up in 2024. Our new solution, PayPal Complete Payments, aims to remove some of their prominent barriers and promote growth.”
