Support, care and passion is the basic entrepreneurial diet for business growth, especially when it comes to the highly competitive field of SMEs. However, a new report shows many service providers leave small-business leaders feeling like less of a priority to bigger clients.
Having surveyed and interviewed 500 British SMEs Adaptive Lab, the beta-business builder, discovered that 60% feel undeserved and undervalued by big service providers such as banks, telecommunications and utilities. Moreover, 56% believe that these businesses had little or no understanding to the challenges SMEs face with 59% feeling service didn’t tailor their support to the size of the business, treating all clients with a ‘one size fits all’ attitude. The result of traditional suppliers lack of bespoke support is that 51% are trusting challenger banks or startups more. In fact, 40% have already switched or were looking to switch providers in the last 12 months alone.
Commenting on the belittlement felt by SMEs, Chris Moisan, principal at Adaptive Lab, said: “Most service providers approach the SME segment as a homogeneous community, ignoring their diversity and unique needs. Is the definition of an SME still fit for purpose? The small and medium business sector is a mighty force in our economy.”
While it’s sad to see SMEs feeling neglected, it’s great to see startups taking advantage of the opportunity for new entrants to fill the boots of lacklustre incumbents. Indeed, insight like these have already enabled companies like MarketInvoice, Metro Bank and Funding Circle, to grow exponentially in just a few years time. And given the fact that London remains the fintech capital of Europe, many more entrepreneurs will surely rise in the years to come.