Peer power helps SMEs thrive through support networks
A new report has found that strong peer support and professional networks are crucial to the success of small businesses.
According to American Express’s recent research, 94 per cent of UK SME leaders believe that supporting their peers is critical to driving business success.
Peer learning encourages entrepreneurs to share skills and resources with others in similar situations.
It allows business owners to tackle specific problems and get quicker, more affordable practical advice.
The survey of 500 SME owners and senior decision-makers noted that over half (54 per cent) have benefited from their professional networks through new business opportunities.
The study identified the most valued forms of peer support.
It revealed that 40 per cent reported product or service recommendations as a top priority, closely followed by business or financial advice.
Peer learning can also facilitate decision-making for business owners by offering varying perspectives and practical advice.
According to a Deloitte report, this can improve decision-making quality by 20 per cent.
It can also cut business risk by 30 per cent.
Notably, 71 per cent of respondents said they trusted referrals from fellow small business owners, with nearly half acknowledging that such referrals save time and ensure high-quality choices.
Lee Sullivan, vice president at American Express, said: “Our research shows that business leaders are deeply committed to supporting each other and recognise the positive impact it has on future success.”
He further noted that strong business networks facilitate growth through trusted referrals and everyday advice.
Meanwhile, Be The Business’s research found that a third of businesses receiving peer advice reported revenue increases, compared to around a quarter who did not.