In May 2011 I launched my manifesto for Digital Business Britain to place thoughts in the minds of key economy stakeholders regarding the need for greater exploitation of the web. In May 2011 I conducted a survey of 817 UK SME's and in September 2011 I worked with Fast Future and together we launched my findings and recommendations in a White paper, available on www.pennypower.co.uk. This Slideshow is a summary of findings and recommendations

1. Exploiting the Future Potentialof Social Media within UKSmall to Medium Enterprises (SMEs) A Pathfinder Study Conceived and Conducted by Penny Power in Partnership with Fast Future Research Slides supporting the White Paper To download the White Paper please visit www.pennypower.co.uk September 2011

2. Introduction SME Exploitation of the Web Youth Unemployment Opportunities arising from the Digital Age Add a level of business skills and adapt use of social media to business Employability programme UK SMEs motivated to leverage the Internet Two distinct skill sets Interactive technology Marketing We must find ways of helping small businesses bridge the gap Digital Business Britain Manifesto

3. The Action AgendaKey Findings and Understanding Increasing Importance of SMEs for the UK Economy The UK is facing a decade of turbulence However, there is real vibrancy in the SME sector SMEs - fastest and most viable route to drive short to medium term economic growth and job generation ‘…over the past six months UK small-to-medium-sized businesses (SMEs) have grown on average by six per cent…” Source: HP survey, 2011

4. The Action AgendaKey Findings and Understanding Unemployment is a Critical Challenge Small and large businesses outsourcing tolow cost economies Large businesses unable to adapt fast enough against purpose-built Internet competitors Redundancies within government sector Graduate unemployment rising Companies cutting budgets and spending Sole trader and SME growth to absorb growing labour pool with limited employment prospects Youth unemployment is a growing concern for the UK 2.43 millionunemployed in UK 829,000 unemployed for over 12 months 917,000 16-24 year olds unemployed in the three months to May 2011 18.2% of economically active populationSource: www.statistics.gov.uk

5. The Action AgendaKey Findings and Understanding Supporting the Development of the UK’s Micro Businesses What support do new and emerging SMEs need? What can be done to help the growing band of micro businesses to maximise their chances of success? Pathfinder survey assessed awareness, take-up and skills gap around social media amongst UK SMEs One critical pillar of a successful SME growth strategy is to embrace fully the potential of social media

6. The Action AgendaThe Pathfinder Survey Nationally Representative Respondent Base Survey conducted between May 2011 and June 2011 817 responses from across UK Promoted via social media including social networks of: Ecademy Fast Future Research The Chamber of Commerce BNI Largest response groups: South East, London & South West London 27.6% South West 10.8% South East 28.1%

7. The Action AgendaSurvey Results Small Teams, Tight Finances Respondents by Business Size Respondents by Turnover

8. The Action AgendaSurvey Results Small Steps to Global Markets 78% of respondents believe they can sell outside the UK Unfulfilled international potential Survey reflects a group more active in social media than general SME population Possibly understand better its potential to facilitate international trade Clear digital presence may be a key enabler Find smart ways to help UK businesses make transition to trading internationally Build international presence and customer base National commitment to raising UK SMEs’ foreign market exposure Only 45% of respondents are actually selling outside the UK today Only 23% of the total SME community sells goods/services/ licenced products outside the UK Source: www.bis.gov.uk

9. The Action AgendaSurvey Results UK Internet – A £100Bn Sector UK - biggest e-commerce market in the world when measured by the amount spent per capita Internet economy - likely to grow by 10% a year for the next 5 years Could contribute up to 13% of GDP a year by 2015 150,000 businesses signed up for a free hosted website in the first 12 months of Google’s Getting British Business Online campaign “The Internet is worth £100Bnto the UK economy – more than 7% of national income.” Source: Google ‘Connected Kingdom’ report, 2010

10. The Action AgendaSurvey Results In Sight But Out of Reach Clear recognition of commercial value of social media Increasing take-up and exploitation through growth forecasts for e-commerce and national roll-out of broadband in 2015 84.6% of respondents believe social media to be important to their business 52% 70% 39% of respondents are selling through the Internet of respondents use the Internet for paying taxes of respondents reported having grown business as a result of using social media

11. The Action AgendaSurvey Results Resource Constraints Time management challenges faced by the average UK entrepreneur 75.9% of respondents are the main person undertaking social media activity within their firm 12.5% say they have a staff member conducting the majority of their social media efforts Time Spent on Social Media Activity

12. The Action AgendaSurvey Results Addressing the Skills Gap Clear skills gap between seeing the opportunity and having the capability to realise it Reports from China suggest need for 600,000 additional media skilled individuals in the next 3-5 years 59.9% of respondents see the value of having a dedicated social media apprentice Perceived Social Media Expertise

14. Over half the respondents already using it

16. Launch their own business

17. Minimise the associated administrative requirements

19. A daunting move when starting out

21. Some seem unable/unwilling to devote time

22. Social Media Apprenticeships recognised as potentially valuable vehicle to provide dedicated resources

24. Recommendations Encourage Social Media Agencies and providers of training and coaching to provide Social Media Apprenticeship opportunities Encourage companies to recruit one Social Media Apprentice Immediate benefit of work experience combined with a low cost resource Remove the strain of educating a work experience student and show them the commercial aspect of the sector Help young people translate academic knowledge into transferable business skills and solutions Encourage agencies to help SMEs get started with social media

25. Recommendations Research the journey and share the learning Incubated research programme monitors changes that occur within SMEs when they gain the resource and skills of a young person Monitor how the SME and SMA learn to work together Capture innovative changes that take place

26. Recommendations Support the unemployed Those being made redundant need to adapt to and believe in their ability to be a sole trader Education programme to help build their social capital and influence online Best achieved by working within an ecosystem of education, business support, housing associations, job centres and innovation partners

27. Recommendations Track the social attitude shift amongst UK SMEs Track change in culture from the ‘closed, selective and controlling’ mindset of traditional business to the ‘open, random and supportive’ mindset of the connected, social world Ethical communication and values

28. Recommendations Drive adoption of social media within the education system Encourage the use of social media and digital as a force for good within academic institutions Create awareness of reputation management and personal branding

29. Recommendations Develop a peer-to-peer mentoring service Expansion of practical education and support programmes Coalface knowledge Business volunteering initiative

30. Recommendations Create the desire for small businesses to recruit this new form of business development Create the demand for jobs Roadshows around the country with support of networks such as the Chamber of Commerce

31. Recommendations Summary Launch a Social Media Apprenticeship (SMA) programme Encourage Social Media Agencies and providers of training and coaching to provide Social Media Apprenticeship opportunities Research the journey and share the learning Support the unemployed Track the social attitude shift amongst UK SMEs Drive adoption of social media within the education system Develop a peer-to-peer mentoring service Create the desire for small businesses to recruit this new form of business development

32. Summary SME Exploitation of the Web Youth Unemployment Opportunities arising from the Digital Age Add a level of business skills and adapt use of social media to business Employability programme UK SMEs motivated to leverage the Internet Two distinct skill sets Interactive technology Marketing We must find ways of helping small businesses bridge the gap Digital Business Britain Manifesto

33. Questions penny.power@ecademy.com twitter: @pennypower www.pennypower.co.uk 07771 543478

34. Additional Slides 

35. Digital Business BritainAn 8 Point Manifesto Adopt a Digital Mindset and philosophy Improve Britain's trading future Ensure national inclusion Provide Digital Skills to all, offering individuals choice and a future that they can control Embrace ethical on-line behaviour Value the social capital created by individuals Ensure our Business Leaders, Advisors, Mentors and Coaches understand Digital Business Recognise the value of home based, digitally connected business in the economy

36. Background on Penny Power In 1998 Penny Power Founded Ecademy.com A Social community for SME’s that has grown to over 620,000 member profiles in 200 countries. Based in the UK, Penny and her husband Thomas have spent 13 years evangelising the use of Social Media and Digital tools to help SME’s become more productive and grow their business. In 2010 Penny launched the Ecademy Digital School to train Business Coaches on how to embrace the digital world and ‘go social’, helping them and their clients to grow. In March 2011 Penny wrote the Manifesto for Digital Business Britain www.ecademy.com/manifesto to manifest a nation of Digital Mindsets and help SME’s build their businesses through social media and digital tools.

38. Training Providers

39. Business Coaches