Spending on sales and marketing is the top priority for small businesses seeking to drive growth, a study has found.
According to a study from the business intelligence provider Meed of about 150 SMEs from across the UAE, spending on sales and marketing was the priority to drive growth, followed by staff training and development.
Product development and innovation, strategic partnerships and investments in technology and IT security were the other key areas for investment for small businesses.
The challenge for SMEs is finding cost-effective ways to drive sales when they do not have substantial marketing and sales budgets, according to Richard Thompson, the editorial director of Meed.
“This means harnessing digital solutions to reach their target audiences for minimum costs, and, perhaps most important of all, developing word-of-mouth recommendations,” Mr Thompson said.
In the hospitality sector in the SME space, most of the investment is happening in technology for areas such as back-of-house, distribution and revenue management, according to Jeff Strachan, an analyst with the Dubai-based consultancy Insights Middle East.
“This is a highly competitive segment because prices are coming down and people are changing suppliers, as they want to drive the costs down,” Mr Strachan said.
Customer service, recruitment and enhancing workplace culture and environment were among the other areas where small businesses want to improve their performance.
The survey was part of the Gulf Capital SME Awards programme, which Meed launched four years ago. This year’s winners will be announced on Wednesday
ssahoo@thenational.ae
Follow The National's Business section on Twitter
