smallbusiness.co.uk: Helping your business think big

Short-term finance

Rory Earley, CEO of Capital for Enterprise, explores the options...
Have your say »

RSS

SMEs receive nothing for business referrals

Sep 14 2009

Small businesses are missing out on the benefits of business referrals, according to research by OpinionMatters on behalf of IT company Easynet Connect.

The survey of 275 executives found that 81 per cent of SMEs regularly refer business but earn no financial reward in return.

SMEs typically make three referrals a month, with an average value of £7,500. This amounts to £270,000 of uncompensated business referrals a year.

Chris Stening, managing director of Easynet Connect, admits that referring business can provide non-financial benefits such as strengthening a company's reputation and contacts, but adds that cash incentives would boost the practice.

Says Stening: 'If moderate incentives encourage more businesses to take the time to refer the services they enjoy, then the whole business world would run more efficiently. Good suppliers would be rewarded with more sales, and those that sing their praises would get a return on their networking as well as build their own profile.'

Comments

There are currently no comments on this article

Mentoring – Now there’s a bright idea for business

Whether you're starting up, taking your business to the next level or just need a sounding board, Lloyds TSB understands that a business mentor can offer you the support and guidance you need to develop your business. Find out more today.

Win with UK2’s Business Hosting

Win tickets to the British GP with UK2’s Business Hosting. Find out more today.

Barclays Business Start Up Account

Get everything you'd expect from a Barclays Business account…Free business banking for up to 2 years (Ts&Cs apply). Free day-to-day support from our Barclays Business Team by phone 24/7 and Mobile Banking, manage your account quickly and easily from a web-enabled phone. Apply online.

Polls

Latest News

Customer service is heralded as a strong point in small businesses

Small businesses best at customer service

Four fifths of consumers in the UK believe that small, independently or locally-owned businesses provide the best customer service experience.

Little change in high street sales

High street sales were slightly down in the year to April, but in line with expectations for the time of year, according to the Confederation of British Industry.

Promising export news for SMEs

UK businesses have seen increases in exporting activity over the first quarter of the year, with many businesses expecting the trend to continue in Q2 2012.

SMEs struggle with public sector tenders

Small businesses are still struggling to win public sector contracts despite the government's efforts to make it easier, research finds.

Consumers plump for e-commerce

Almost a quarter of shoppers say they do more than half of all their shopping online.

Encouraging start to 2012 for businesses

Q1 of 2012 was the best-performing quarter year-on-year since the start of the economic downturn in 2007, research finds.

SME confidence shows promise

Business confidence has bounced back to the highest level in two years, a study finds.

Human interaction favoured by businesses

Owners of small and medium-sized enterprises would still prefer to do business face-to-face rather than online, research finds.

Shop price inflation up

Overall shop price inflation increased to 1.5 per cent in March from 1.2 per cent in February.

Promising manufacturing outlook for SMEs

The UK's manufacturing sector grew at its fastest pace for ten months in March, a study finds.

Retailers expect subdued performance

Sales on the high street were stable in the year to March, but are ‘disappointing for the time of year’, research finds.

Guides & Tips

Opening up your business to global trade

Either finding suppliers or selling your products abroad is very important for a successful and thriving company.

Pay per Click Advertising for Small Businesses in 2011

It's been quite awhile since we last looked at Pay per Click (commonly shortened to PPC) advertising on search engines, and while the basics remain the same, there have been some important changes since that last article and there is also a major market-changing event in the pipeline to which you should be alerted.

Taking the business abroad can open up many new opportunities

Doing business abroad

SmallBusiness.co.uk investigates the steps to take when considering expansion into foreign markets.

Don't Miss

Searching for sales

Simon Campbell set up online marketing service The Sandpit less than six months ago, but is projecting £1 million in sales for its first year of trading.

David Strang is flying high with his boomerangs

Big returns

David Strang’s boomerang and toy company Wicked Vision has soared since he first launched it ten years ago.

Keep your customers coming back for more

Retaining customers

Keeping customers coming back for more isn't always easy. Here are ten top tips on how to retain a loyal consumer base.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.