Chapter 5: how enterprise may change

 

We have seen that online revenues will assume greater importance in small businesses in Britain and we have highlighted the changes to entrepreneurial thinking. Looking to the future we asked our group of small business owners how they saw the next few years in terms of British entrepreneurship.

 

According to the small businesses surveyed, the benefits identified throughout this report will act as strong drivers for change. We uncovered a strong belief that online revenues will provide a greater share of income over the coming years. In addition, a large number of the respondents are seeking to generate all their income online.

 

• Taking the e-commerce opportunity - 35% of small businesses in Britain believe that they will be able to develop the majority of their revenues online within five years
• Growing profits online - 58% of UK entrepreneurs either develop all their income online or see it as the future of profitable growth
• Importance of online sales - 40% of small business and owners see e-commerce as growing in importance over the next five years but will still have significant offline salese

 

 

In order to deliver the increased share of revenue through an online platform, businesses will need to employ a secure payment solution. This is an area often neglected at the creation of a new business or in a small business where resources are limited. PayPoint.net has worked with some of the most successful and innovative start-ups (a few are profiled here) where we have provided a total payment solution. In all cases we took a complicated issue and managed it for the client seamlessly integrating with the technology developed in the new enterprise.

 

We predict that, as new business creation develops over the next five years, a greater number of specialist support companies will be created. The exceptional levels of connectivity we currently enjoy have made it possible for businesses to outsource a number of previously core functions. Increasing levels of specialisation will mean that partnerships and the sharing of risk become critical. The success of the small business of the future will be dependent on the entrepreneur’s ability to choose and manage a large number of partners rather than their expertise in managing a large team of people. This flexibility in operating structures will see substantial changes in traditional business models with these operating principles moving from the niche to the mainstream.

 

The inherent advantages of a small business in terms of nimbleness and adaptability will be amplified in the next few years and we are confident that small business in Britain will continue to be the backbone of the UK economy.

 

To read this chapter in its entirety, go to the full report.