The Business Boost Report
November 2014
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 ............................................................................................................................................. 11
2
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
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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
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.
What faces your company as a barrier to growth?
56%
55%
54%
53%
Lack of finance
Time pressure
52%
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.
Where is your budget for expansion focused?
60%
:
55%
Expansion
50%
45%
New product/service
development
Staffing
40%
Running Costs
35%
30%
5
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 2015.
What do you predict will be the biggest boost for your business in 2015?
1%
Increased access to finance
9%
15%
More/new staff
10%
Increasing the skillset of existing staff
17%
17%
Lowering running costs
Introduction of a new product/service
Increased awareness as a result of
marketing/advertising/PR
31%
Other
6
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%
What are important considerations for you when choosing an energy
supplier?
60%
50%
Cost
Customer Service
40%
Reputation
30%
Trust
% of energy that comes from
renewable sources
20%
Transparency
Not part of the Big Six
10%
0%
7
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?
12%
2%
Within the last year
27%
4%
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
40% say this is because it’s good for the environment
o
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
Do you have smart meters installed?
35%
30%
25%
Yes, for more than two years
Yes, for less than two years
20%
No, but I'm considering it
15%
No, I'm not considering it
Don't know
10%
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.
If you have smart meters installed, have you noticed a difference?
50%
45%
Yes, it helps me keep track of
my energy consumption
40%
35%
30%
25%
20%
15%
10%
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
5%
0%
9
•
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.
If you don't have smart meters installed, why not?
45%
40%
35%
30%
Costs of acquiring and installing smart
meters is too high
Unsure of benefits
25%
Inconvenience of installation
20%
Don't know how I would use the data
15%
Other
10%
5%
0%
10
Conclusion
It’s very encouraging to see that so many of the UK’s SMEs are showing ambition for growth in
2015. 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 www.opusenergygift.com/boost
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