Penny Power Pathfinder study of UK SME's, Social Media and Unemployed Youths

Copyright © 2011 Penny Power Ltd 1

Exploiting the Future Potentialof Social Media within UK

Small to Medium Enterprises (SMEs)

A Pathfinder Study

Conceived and Conducted by Penny Power

in Partnership with Fast Future Research

Slides supporting the White Paper

To download the White Paper please visit www.pennypower.co.uk

September 2011

http://www.pennypower.co.uk/


Introduction

SME Exploitation of the Web Youth Unemployment

• UK SMEs motivated to leverage the Internet

• Two distinct skill sets– Interactive technology– Marketing

• We must find ways of helping small businesses bridge the gap

• Digital Business Britain Manifesto

• Opportunities arising from the Digital Age

• Add a level of business skills and adapt use of social media to business

• Employability programme


• The UK is facing a decade of turbulence– However, there is real vibrancy in the SME sector

• SMEs - fastest and most viable route to drive short to medium term economic growth and job generation

The Action AgendaKey Findings and Understanding

‘…over the past six months UK small-to-medium-sized businesses (SMEs) have grown on average by six per cent…”

Source: HP survey, 2011

Increasing Importance of SMEs for the UK Economy


• Small and large businesses outsourcing tolow cost economies

• Large businesses unable to adapt fast enough against purpose-built Internet competitors

• Redundancies within government sector• Graduate unemployment rising• Companies cutting budgets and spending• Sole trader and SME growth to absorb growing

labour pool with limited employment prospects• Youth unemployment is a growing concern for

the UK


Unemployment is a Critical Challenge• 2.43 million

unemployed in UK

• 829,000 unemployed for over 12 months

• 917,000 16-24 year olds unemployed in the three months to May 2011

• 18.2% of economically active populationSource: www.statistics.gov.uk


• What support do new and emerging SMEs need?

• What can be done to help the growing band of micro businesses to maximise their chances of success?

• Pathfinder survey assessed awareness, take-up and skills gap around social media amongst UK SMEs


Supporting the Development of the UK’s Micro Businesses

One critical pillar of a successful SME growth strategy is to embrace fully the potential of social media


• Survey conducted between May 2011 and June 2011

• 817 responses from across UK

• Promoted via social media including social networks of:– Ecademy– Fast Future Research– The Chamber of Commerce – BNI

• Largest response groups:– South East, London & South West

The Action AgendaThe Pathfinder Survey

Nationally Representative Respondent Base

South East28.1%

South West10.8%

London27.6%


The Action AgendaSurvey Results

Small Teams, Tight FinancesRespondents by Business Size

Respondentsby Turnover



Small Steps to Global Markets• Unfulfilled international potential

• Survey reflects a group more active in social media than general SME population– Possibly understand better its potential

to facilitate international trade

• Clear digital presence may be a key enabler

• Find smart ways to help UK businesses make transition to trading internationally– Build international presence and

customer base

• National commitment to raising UK SMEs’ foreign market exposure

78%of respondents believe they cansell outside the UK

Only 45%of respondents are actually sellingoutside the UKtoday

Only 23%of the total SME community sells goods/services/ licenced products outside the UKSource: www.bis.gov.uk



UK Internet – A £100Bn Sector• UK - biggest e-commerce market in the world when

measured by the amount spent per capita

• Internet economy - likely to grow by 10% a year for the next 5 years– Could contribute up to 13% of GDP

a year by 2015

• 150,000 businesses signed up for a free hosted website in the first 12 months of Google’s Getting British Business Online campaign

“The Internet is worth

£100Bnto the UK economy – more than 7% of national income.”

Source: Google ‘Connected Kingdom’ report, 2010



In Sight But Out of Reach• Clear recognition of commercial value of

social media• Increasing take-up and exploitation through

growth forecasts for e-commerce and national roll-out of broadband in 2015

84.6%

52%70% 39% of respondents use the Internet for paying taxes

of respondents

believe social media to be important to their business

of respondents reported having grown business as a result of using social media

of respondents are selling through theInternet



Resource Constraints• Time management challenges

faced by the average UK entrepreneur

75.9% of respondents are the main person undertaking social media activity within their firm

12.5% say they have a staff member conducting the majority of their social media efforts

Time Spent on Social Media Activity



Addressing the Skills Gap• Clear skills gap between seeing the

opportunity and having the capability to realise it

• Reports from China suggest need for 600,000 additional media skilled individuals in the next 3-5 years

Perceived Social Media Expertise

59.9% of respondents see the value of having a dedicated social media apprentice


The Action AgendaImplications

Eyes on the Prize• Potential of social media is increasingly well

understood

• Over half the respondents already using it

• A number appear to lack the time or inclination to devote to building true mastery of this critical medium

A Critical Engine of Growth• Make sure mechanisms are in place to help

sole traders and SMEs to:- Launch their own business- Minimise the associated administrative

requirements

• Ensure these groups are supported and motivated to succeed

In Search of Opportunity• SMEs believe they can do more

internationally

• A daunting move when starting out

• Need practical help and advice from those more experienced

Tooling Up• Time is key – many tasks compete

• Some seem unable/unwilling to devote time

• Social Media Apprenticeships recognised as potentially valuable vehicle to provide dedicated resources

• Help SMEs capitalise on social media


Recommendations

Launch a Social Media Apprenticeship (SMA) programme

• Three ‘training frameworks’

• Maximum flexibility for the SME and SMA

• Qualification as a standard for recruitment and adoption

• Access to key skills

• Embrace students already investing time in academia on media skills

• Exercise the creativity of young ‘born digital’ people


Recommendations

Encourage Social Media Agencies and providers of training and coaching to provide Social Media Apprenticeship opportunities• Encourage companies to recruit one Social Media Apprentice

• Immediate benefit of work experience combined with a low cost resource

• Remove the strain of educating a work experience student and show them the commercial aspect of the sector

• Help young people translate academic knowledge into transferable business skills and solutions

• Encourage agencies to help SMEs get started with social media


Recommendations

Research the journey and share the learning

• Incubated research programme monitors changes that occur within SMEs when they gain the resource and skills of a young person

• Monitor how the SME and SMA learn to work together

• Capture innovative changes that take place


Recommendations

Support the unemployed

• Those being made redundant need to adapt to and believe in their ability to be a sole trader

• Education programme to help build their social capital and influence online

• Best achieved by working within an ecosystem of education, business support, housing associations, job centres and innovation partners


Recommendations

Track the social attitude shift amongst UK SMEs

• Track change in culture from the ‘closed, selective and controlling’ mindset of traditional business to the ‘open, random and supportive’ mindset of the connected, social world

• Ethical communication and values


Recommendations

Drive adoption of social media within the education system

• Encourage the use of social media and digital as a force for good within academic institutions

• Create awareness of reputation management and personal branding


Recommendations

Develop a peer-to-peer mentoring service

• Expansion of practical education and support programmes

• Coalface knowledge

• Business volunteering initiative


Recommendations

Create the desire for small businesses to recruit this new form of business development

• Create the demand for jobs

• Roadshows around the country with support of networks such as the Chamber of Commerce


Recommendations Summary

Create the desire for small businesses to recruit this new form of business development

Launch a Social Media Apprenticeship (SMA) programme

Encourage Social Media Agencies and providers of training and coaching to provide Social Media Apprenticeship opportunities

Research the journey and share the learning

Support the unemployed

Track the social attitude shift amongst UK SMEs

Drive adoption of social media within the education system

Develop a peer-to-peer mentoring service


SME Exploitation of the Web Youth Unemployment

• UK SMEs motivated to leverage the Internet

• Two distinct skill sets– Interactive technology– Marketing

• We must find ways of helping small businesses bridge the gap

• Digital Business Britain Manifesto

• Opportunities arising from the Digital Age

• Add a level of business skills and adapt use of social media to business

• Employability programme

Summary


Questions

[email protected]

twitter: @pennypower

www.pennypower.co.uk

07771 543478


Additional Slides


1. Adopt a Digital Mindset and philosophy

2. Improve Britain's trading future

3. Ensure national inclusion

4. Provide Digital Skills to all, offering individuals choice and a future that they can control

5. Embrace ethical on-line behaviour

6. Value the social capital created by individuals

7. Ensure our Business Leaders, Advisors, Mentors and Coaches understand Digital Business

8. Recognise the value of home based, digitally connected business in the economy

Digital Business BritainAn 8 Point Manifesto


In 1998 Penny Power Founded Ecademy.com

A Social community for SME’s that has grown to over 620,000 member profiles in 200 countries. Based in the UK, Penny and her husband Thomas have spent 13 years evangelising the use of Social Media and Digital tools to help SME’s become more productive and grow their business.

In 2010 Penny launched the Ecademy Digital School to train Business Coaches on how to embrace the digital world and ‘go social’, helping them and their clients to grow.

In March 2011 Penny wrote the Manifesto for Digital Business Britain www.ecademy.com/manifesto to manifest a nation of Digital Mindsets and help SME’s build their businesses through social media and digital tools.

Background on Penny Power


An ambitious plan has been developed to achieve the following goals:• Growth in SME use of social media for business development purposes

• Reduction in Youth Unemployment (NEETs or Born Digital’s)

• Growth in Digital jobs by the creation of a new role – the Digital Assistant

• Growth in exporting opportunities

• Improve the ethics and communication style of British Social Media users

• Creation of the ‘Ecademy Start-Up’ program to help redundant adults to build their social media presence and start their own business

• Penny to create the country’s first ‘Collaborative Digital Ecosystem’ of ‘stakeholders’ who share in the Vision to grow the UK through increased Web Exploitation with collaboration between:

– Housing Associations– Business Support networks –

LEP’s, Chamber, IoD, FSB, Ecademy etc

Background on Penny Power

– Colleges of Higher Education– Training Providers– Business Coaches

Penny Power Pathfinder study of UK SME's, Social Media and Unemployed Youths

Education

Transcript of Penny Power Pathfinder study of UK SME's, Social Media and Unemployed Youths