Small businesses collaborating for mutual success: Six strategies for thriving together

Running a small business can be both rewarding and demanding, and those who truly understand the challenges are other small business owners. With over 5.5 million small businesses in the UK, accounting for more than 99% of the total business community, there is a vast network of entrepreneurs who have compelling reasons to help each other succeed.
Here are six ways in which small businesses actively support each other:
1. Referrals: According to research by American Express, nearly 39% of small business owners regularly refer other small businesses’ products and services to people. This word-of-mouth referral is highly valued, as it can lead to additional sales and potential regular customers.
2. Recommendations: Small businesses also advise each other on specific products or services that can support their operations. Over 29% of small business owners show their support in this way, and more than half of them appreciate referrals and recommendations, often returning the favor.
3. Buying from other small firms: Choosing products and services from smaller companies is the second most common way small businesses support each other. Approximately 38% of small business owners report purchasing goods or services from fellow small firms, creating a reciprocal action that boosts sales for both parties.
4. Inspiring each other: One in five small business owners helps new startups by inspiring or mentoring them. This support can be through official programs or informal arrangements, such as offering advice to neighboring firms. Many value the impartial advice they receive from fellow entrepreneurs.
5. Creating small business networks: Developing a community of small businesses provides much-needed support when facing the pressures of running a business. About 24% of small business owners benefit from joining local business groups or online networks, as they find solace in connecting with peers who understand their unique challenges.
6. Collaborating with other small firms: Small businesses can support each other by sharing workspaces, equipment, or even staff. This collaboration helps keep costs low and gives small firms the opportunity to try new things or expand cautiously. Nearly 18% of small business owners have helped other small businesses in this way.
By providing support in these various ways, small businesses increase their chances of success and contribute to a thriving economy. American Express recognizes the importance of supporting the small business community and encourages growth through the power of rewards.
Until November 14, 2023, Business Gold Cardmembers can earn bonus Membership Rewards points for successfully approved referrals. Additionally, they have the opportunity to earn extra bonus points for every pound spent, up to a maximum spend of £10,000, for one month only. American Express is committed to empowering small businesses and offers various benefits to its members.
Remember, a strong small business backbone is essential for a thriving economy and society. Let’s continue to support each other and create an environment where all small businesses can succeed.
(Note: The content of this news post has been rewritten while keeping the names and quotes from the original article intact.)