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One in five SME owners rely on ‘good luck’ as a key business driver

Published 6th May 2015

There is a common saying that you make your own luck. This usually refers to you working hard, remaining committed to the cause and being clever in your approach.

However, based on the figures in the Scottish Pacific SME Growth Index, many businesses think ‘good luck’ is the key driver of success.

The index took in the views of more than 1,200 Australian SME senior managers on a number of different topics. These included what drives their success, who they trust and their intentions for the coming year.

SMEs are the heartbeat of the national economy, employing millions of people across the country. Without these organisations being confident and growing, Australia would be a much different place indeed.

Key growth drivers

As mentioned above, the most common answer in relation to key growth drivers was good fortune (20.9 per cent). This was followed by technology integration (13.4 per cent) and smart marketing (12. 7 per cent)

The fact that good luck topped the list is a concerning fact. Businesses need to understand what aspects are growing their reach and, if they can’t identify these, they require assistance from outside the organisation.

However, statistics in this area didn’t paint a pretty picture either.

A total of 38.6 per cent of businesses had no trusted business advisor. In fact, this percentage was larger than the group that did name someone they trust with their finances. This included trading partners (26.6 per cent), friends (9.7 per cent), accountants (9 per cent) and bank managers (4.2 per cent).

Scottish Pacific CEO Peter Langham explained this result in more detail.

“The fact they were more likely to trust a friend to provide advice about their business than their well-qualified banker or accountant shows there is a real opportunity for finance brokers, accountants and lawyers to step up and fill this gap for SMEs, to make the process easier for them,” he said in a media statement.

New products and services

One positive statistic to come out of the survey was that 65 per cent of small business owners are in the market for new products or services in the first half of 2015. Although this is slightly down from September figures, it shows that there is a commitment to making technology and processes a key growth driver instead of sheer luck.

For more information about improving your business luck through new technology, contact the expert team at Oncore Services today.