The Business Boost Report. November 2014

Transcription

1 The Business Boost Report November 2014

2 Contents Introduction... 3 Key findings... 4 Business optimism... 5 Are the UK s SMEs growing?... 5 Where is budget focused?... 5 Pressed for time... 6 In need of a boost?... 6 SMEs and energy... 7 How do SMEs find the best energy deal?... 7 Choosing an energy supplier... 7 How often do SMEs switch energy supplier?... 8 Conclusion

3 Introduction For more than a decade, Opus Energy has supplied energy exclusively to businesses and is one of the UK s leading independent energy suppliers. It now supplies more than 200,000 business locations across the UK and also purchases power from over 1,300 renewable generators in the UK which it then supplies to its customers. Small and medium-sized enterprises (SMEs) are the engine room of the UK s economy, and make up a large proportion of our customers. We have a continued commitment to provide SMEs with the products and services they need through excellent customer service, flexible products and accurate billing. This has been demonstrated recently as we have: Been independently ranked first for customer service for small and medium-sized businesses by Datamonitor, and Accredited with Putting the Customer First from Customer First UK Ltd. In addition, in the year to March 2014, we increased the energy supplied to SMEs generated via renewable sources to 91% of our total energy provision. This compares favourably against a national average for all UK energy suppliers of just 17%. As part of this continued commitment to SMEs, we commissioned research among 500 UK SMEs to gain an understanding of business confidence, how they are feeling about the future and to examine attitudes towards energy purchasing and management. We plan to use the findings of the research to help guide our development of new products and services for SMEs and ensure we best meet their bespoke needs. We hope you find the contents of this report useful and thought-provoking. If you have any queries on the issues raised please get in touch. Louise Boland Director Opus Energy 3

4 Key findings UK SMEs are cautiously confident about the future, with 56% saying the long-term future of their business looks optimistic. However, SMEs are time pressured, with 71% having to cover multiple roles within their business. 57% of SMEs would welcome a boost to help their business grow or survive. Cost is the most important consideration for SMEs when choosing an energy supplier. However, when their contract is due for renewal, 81% of SMEs admit they do not shop around different suppliers to check they re on the best deal. More than one in ten SMEs (12%) have never switched energy suppliers. 78% of SMEs would like to be supplied with renewable energy. 44% of those with smart meters find that they help them keep track of their energy consumption, helping them manage their energy better. 4

5 Business optimism Are the UK s SMEs growing? 54% of SMEs say their business has grown in the past year. Despite the fact that 51% are concerned for the future of their business, 56% of SME owners and decision makers say the long-term future of their company looks optimistic. Half of SMEs predict their business will grow in 2015, but there are barriers that are stopping SMEs growing as fast as they could. 56% What faces your company as a barrier to growth? 55% 54% 53% 52% Lack of finance Time pressure Lack of skilled staff 51% 50% 49% Where is budget focused? More than half of SMEs are focusing budget on expansion for the next 12 months. 60% Where is your budget for expansion focused? : 55% 50% 45% 40% Expansion New product/service development Staffing Running Costs 35% 30% 5

6 Pressed for time With time pressure identified as a barrier to growth, 51% of SME owners and decision makers admit they can only plan for the short term i.e. up to six months ahead. Nearly three-quarters of SME decision makers (71%) have to cover multiple roles within their business as part of their job. In need of a boost? 57% of SMEs would welcome a boost to help their business grow or survive. Nearly one-third of SMEs (31%) predict increasing the skillset of existing staff will be the biggest boost for their business in What do you predict will be the biggest boost for your business in 2015? 1% 9% 15% Increased access to finance 10% More/new staff Increasing the skillset of existing staff 17% Lowering running costs 17% Introduction of a new product/service Increased awareness as a result of marketing/advertising/pr 31% Other 6

7 SMEs and energy How do SMEs find the best energy deal? 81% of those responsible for energy in SMEs do not shop around with other suppliers to check whether there are any better deals on offer when their contract is due for renewal. Nearly a quarter of SMEs (24%) do not have an energy contract, and are being charged out-of-contract rates. Choosing an energy supplier The most important considerations for SMEs when choosing an energy supplier are: 1. Cost - 50% 2. Customer service - 36% 3. Reputation - 28% 60% What are important considerations for you when choosing an energy supplier? 50% Cost 40% Customer Service Reputation 30% 20% Trust % of energy that comes from renewable sources Transparency Not part of the Big Six 10% 0% 7

8 How often do SMEs switch energy supplier? Just over a third of SMEs (37%) switched energy supplier within the last two-three years. However, a further 36% have not switched within the last three years, and more than one in ten SMEs (12%) have never switched energy suppliers. When did your business last switch energy supplier? 2% 12% Within the last year 4% 27% Within the last 2-3 years Within the last 4-5 years 18% Within the last 6-10 years Over 10 years ago 37% My business has never changed suppliers Is clean energy important to SMEs? 78% of SMEs would like to be supplied with renewable energy: o o 40% say this is because it s good for the environment 38% say this will help boost their business green credentials Smart meters 51% of SMEs have smart meters installed with uptake of smart meter installation rising by 43% over the last two years. An additional 27% are considering getting smart meters. 8

9 Do you have smart meters installed? 35% 30% 25% 20% 15% 10% Yes, for more than two years Yes, for less than two years No, but I'm considering it No, I'm not considering it Don't know 5% 0% 44% of those with smart meters find that they help them keep track of their energy consumption, helping them manage their energy better. However, 56% of those with smart meters have not noticed a difference in their energy consumption nearly a fifth of these either don t know how to use the data obtained from their smart meters, or don t know where to find the data. 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% If you have smart meters installed, have you noticed a difference? Yes, it helps me keep track of my energy consumption No, there has been no difference in my energy buying or consumption No, I don't know how to use the data No, I don't know where to find the data Don't know 0% 9

10 Among those without smart meters, the most common reason for their business not making use of them is that they are unsure of the benefits to be gained from smart meter usage. 45% If you don't have smart meters installed, why not? 40% 35% 30% 25% 20% 15% 10% Costs of acquiring and installing smart meters is too high Unsure of benefits Inconvenience of installation Don't know how I would use the data Other 5% 0% 10

11 Conclusion It s very encouraging to see that so many of the UK s SMEs are showing ambition for growth in However, while the research highlights how the UK s SMEs are optimistic about their future, there are certain barriers that prevent them growing further. With time pressure revealed as one of the primary barriers, many SMEs are missing out on opportunities to save on their energy costs. It is important to ensure they don t get stuck on expensive out-of-contract rates, and they should be sure to ask their supplier for tools such as smart meters to help them manage their energy costs. As the report shows, so many SMEs are facing time pressure and would welcome a boost to help their business grow. Opus Energy is offering the opportunity for one lucky SME to win a marketing package worth 10,000, including: 5,000 advertising space A press advert created by a leading advertising agency A press pack produced by PR experts Helpful marketing advice from Opus Energy To find out more and submit a business for entry, go to 11