As the harsh financial realities of the pandemic still affect UK businesses, 2023 offers a mixed array of challenges and opportunities for SMEs in the UK. In order for businesses to survive this challenging, unpredictable future, they need to have a deep understanding of the emerging trends, and look at what experts are predicting.
Whether it’s recruitment firms, advertising consultants, or online casinos, any business in the UK should look at these emerging trends to understand what’s going on and how they need to adapt.
Borderless Hiring: Talent From Abroad
The decades-old problem of skills shortages continues to affect UK businesses. However, as 2023 progresses, SMEs in the UK seem to be embracing a global recruitment approach more enthusiastically than other Western countries – especially when compared to the US and Canada.
As the number of remote workers remains high, even after the pandemic, international hiring has become a lot easier – and attractive – for UK companies. For many, it can result in major savings, too. For example, one company, Remote, found that 56% of UK business owners have already added at least one international employee into their teams since 2020. This trend has shown itself to be highly-beneficial, with some 88% of UK employers endorsing the benefits of remote work models.
However, the language barrier problem continues to be the biggest hurdle for UK SMEs hiring abroad. Advancements in technology is helping to minimise this disruption, but it’s still a challenge to businesses hiring workers from poorer countries, where English isn’t widely spoken as a second language.
Fast-Track Digital Transformation: Fighting Rising Costs
The cost-of-living crisis is not just a consumer problem; businesses, especially SMEs, are facing huge financial struggles. With the added 25% corporate tax increase that came in in April, the economic pressure on UK businesses is intense, and companies are doing everything they can to mitigate these costs.
So far, one of the most effective tools appears to be investing in technological innovation. By getting in quickly with transformative technologies such as AI, IoT, Virtual Reality, Augmented Reality, and Cloud Computing, SMEs can significantly optimise their business, while gaining an edge on competitors.
It’s fascinating to see how different companies are using new technologies in their day-to-day business. Some major UK companies like BT and EE have started to use AI to strengthen their customer support facilities, while casinos offering online slots have started using Virtual Reality to let players gamble in an augmented and authentic online casino environment. The continual innovation in the tech industry can produce significant savings for businesses when used correctly.
The Importance Of Diversifying Supply Chains
Global supply chains are more strained than ever. The pandemic continues to impact international trade, as do ongoing geopolitical issues like the Russia-Ukraine conflict and the “trade war” with China. What’s more, Brexit continues to disrupt the UK’s supply chains for goods, services, and raw materials.
To overcome these challenges, some UK SMEs are starting to look at diversifying their supply chains – with a particular emphasis on looking at new, emerging markets. According to Morgan Stanley Research, this is resulting in more regional trade partnerships; good news for UK manufacturers, but bad news for companies who relied on ultra low-cost products from Asia, in the past.
Naturally, while supply chain diversification can lower costs and enhance business networks, it’s not without its setbacks. Shifting to new suppliers can have cultural and communication problems, and businesses need to be careful that they’re prepared for these challenges before relying too heavily on new supply chains.
