Lack of support with sales and marketing most pressing issue for small businesses research shows
Industry supporters have warned one particular issue threatens to hold back the growth of small businesses in 2024 and it’s not funding.
A survey of over 1,200 businesses, conducted on behalf of the 2023 UK StartUp Awards and Starling Bank, showed that 67 per cent of business founders consider marketing and sales support to be one of their biggest challenges in the year ahead.
The survey also showed that 85 per cent of start-ups that launched in the last three years have relied on personal capital for the initial source of funding, a trend that has long been seen since traditional banks began tightening their lending criteria.
But why has marketing jumped to the top of the list of small businesses’ worries this year?
“Unfortunately, marketing budgets still tend to be one of the first to get cut in challenging circumstances,” Lisa Eaton, founder of marketing training platform, Fabric Academy, said.
When “done correctly,” however, Eaton said marketing is one of the most “powerful tools” for driving business growth.
“The decision to trim marketing budgets should be well considered and not just a default reaction,” she said.
Eaton added: “In my opinion, marketing is a crucial investment, especially during challenging times, to maintain brand visibility, engage with new and existing customers, and seize opportunities in the market.
“I’d really like to think the evidence that backs this up will reduce cuts in marketing budgets this year.”
Andy Fishburn, managing director at Virgin StartUp, said a small budget does not necessarily correlate with an inability to create effective marketing campaigns.
“So, while marketing budgets are often one of the first elements to be cut, it’s important to remember that building a brand is an essential part of creating a stronger and successful business in the long term,” he said.
With the rise of AI and online tools alike, Fishburn said generating ideas for content has “never been easier.”
“Whilst budgets may not be vast, the tools and resources out there for founders looking to market their business on a budget have never been smarter, easier to use or come with unprecedented reach,” he added.
Harriet Rees, chief information officer at Starling Bank, said start-ups continue to show “incredible resilience” despite the challenges being continuously faced.
“Start-ups have faced a particularly tough environment in the last few years, first with the pandemic and now with higher interest rates and the uncertainties of the cost of living crisis,” she said.