Avia’s new research shows that more than half of all medium and small business enterprises (also known as SME’s) are attempting to diversify in an effort to make it through the debilitating business environment that is a result of the recession.
SME’s have embraced several different diversification techniques including opening on the weekends, increasing the hours they are open in general, broadening the amount of services or products that they offer, and attempting to broaden their customer bases, in order to attract more business in general to combat the trend to buy less by each consumer.
In fact, SME’s have even embraced several tactics that are generally not considered desirable, in an attempt to stay afloat in current economic times. Some of which include offering discounts, lowering the amount they are able to pay employees, and reducing the amount of employees overall.
Apparently some of these tactics must work since only one out of the fifty businesses that were surveyed stated they needed to receive assistance from the Government. This is not to say that some of the tactics used are not risky, as 12% of all the businesses surveyed reported they had foregone commercial insurance.
Avia’s commercial product manager David Bruce stated that while diversification is a positive sign of flexibility and versatility among the SME’s in Britain, it is worrying that some of the firms do not have all of their insurance policies up to date since this means that some of them may be operating illegally in an attempt to cut corners.