Small and medium (SME) size businesses comprise 99% of all businesses. The UK definition of an SME encompasses micro (less than 10 employees and an annual turnover under €2 million), small (less than 50 employees and an annual turnover under €10 million) and medium-sized (less than 250 employees and an annual turnover under €50 million).
Audiences - Small & medium businesses
Retail, professional services, hair and beauty, cafes, restaurants, catering, technology & IT, manufacture and production, healthcare, agriculture, construction, real estate, arts and entertainment, education and training, tourism and hospitality and many other sectors.
Typical topics and subjects can include pricing strategy, distribution channels, advertising, business services, product and service feedback, market understanding and competitive analysis.
Euro barometer of small & medium businesses
A CATI study was conducted with 300 interviews with SMEs in 23 European markets for 6,900 interviews in total. Sample sources by employee size, revenue and sector (SIC) from the D&B database. Representative targets vs national SME profile in each market. All programming and hosting by RONIN, with local translations of the questionnaire, open-ended translations and data delivery on a weekly basis.
- 6,900 phone interviews across 23 European markets
- Representative sample sources from D&B by RONIN
- 15 languages translated by RONIN translation services team
Understanding SMEs
A small to medium-sized enterprise (SME) refers to businesses that maintain revenues, assets, or a number of employees below a certain threshold. The specific metrics that define an SME can vary by country. Here are some examples of typical SME businesses across various industries:
Typical SME Businesses by Industry
Retail
- Independent grocery stores
- Local boutique clothing shops
- Specialty gift shops
- Hardware stores
Services
- Local law firms
- Accounting firms
- Consulting agencies
- Marketing and advertising agencies
- Hair salons and spas
Food and Beverage
- Independent cafes and coffee shops
- Local restaurants
- Catering services
Technology and IT
- IT support and managed services providers
- Software development firms
- Digital marketing agencies
- E-commerce start-ups
Manufacturing and Production
- Small-scale food processors
- Craftsmanship workshops (e.g., woodworking, metalwork)
- Clothing and textile manufacturers
Healthcare
- Private dental clinics
- Physical therapy centres
- Independent pharmacies
Agriculture
- Family-owned farms
- Small vineyards or wineries
- Boutique agribusinesses (e.g., organic herb farms, beekeeping)
Construction and Real Estate
- Local construction firms
- Real estate agencies
- Property management companies
Transportation
- Local courier and delivery services
- Small charter airline companies
- Independent taxi or ride-hailing services
Arts and Entertainment
- Independent art galleries
- Event planning companies
- Recording studios
- Local theatres
Education and Training
- Private tuition or coaching centres
- Local vocational training institutes
- Independent e-learning content creators
Tourism and Hospitality
- Bed and breakfast establishments
- Local tour operators
- Adventure sports companies
It's worth noting that the above examples can vary in size and scope. Some might be at the larger end of the SME spectrum, with hundreds of employees, while others might be small businesses or even solo enterprises. The key characteristic is that they operate at a scale below that of larger corporations in their respective sectors.
Market Research Topics for SMEs
When considering market research for SMEs (small to medium-sized enterprises), the objectives often revolve around understanding the market, customer behaviours, competition, and potential growth opportunities. The best topics to cover and types of market research methodologies suitable for SMEs include:
Topics to Cover
Market Understanding
- Size and growth rate of the market
- Market segmentation and target audience
- Market trends and future forecasts
Customer Insights
- Customer demographics and psychographics
- Buying behaviour and decision-making process
- Needs, preferences, and pain points
- Customer satisfaction and loyalty
Competitive Analysis
- Identifying key competitors and their market share
- Strengths, weaknesses, opportunities, and threats (SWOT) of competitors
- Unique selling propositions of competitors
Product and Service Feedback
- Product usage and satisfaction levels
- Feedback on pricing
- Suggestions for improvements or new product/service ideas
Branding and Positioning
- Brand awareness and perception
- Positioning in the market relative to competitors
Distribution Channels
- Effectiveness and reach of current distribution channels
- Opportunities for new distribution methods or partnerships
Pricing Strategy
- Price sensitivity analysis
- Optimal pricing points and strategies
Promotion and Advertising
- Effectiveness of current marketing campaigns
- Feedback on promotional materials and advertising mediums
Barriers to Entry
- Challenges faced when entering or expanding in the market
- Regulatory, economic, or competitive barriers
Types of Market Research
Qualitative Research
- In-depth Interviews: One-on-one interviews with stakeholders, customers, or industry experts.
- Focus Groups: Group discussions led by a moderator to gain insights on specific topics.
- Ethnographic Studies: Observing customers in their natural setting to understand behaviour and preferences.
Quantitative Research
- Surveys and Questionnaires: Distributed to a larger audience, either online, on the phone, or face-to-face.
- Observational Research: Counting or recording specific behaviours or actions in a given setting.
Secondary Research
- Industry Reports: Existing reports that provide insights on market size, trends, and competition.
- Competitor Analysis: Using public data to analyse competitors' strategies, products, and performance.
- Online Analytics: Tools like Google Analytics or social media insights to track online behaviour.
Experimental Research
- A/B Testing: Testing two versions to see which performs better, often used for marketing campaigns, websites, or product features.
- Product Trials: Providing samples to get feedback on new products or features.
Analytical Tools
- SWOT Analysis: Assessing strengths, weaknesses, opportunities, and threats.
- PESTEL Analysis: Evaluating external factors (Political, Economic, Social, Technological, Environmental, and Legal) affecting the business.
Conducting market research can be a resource-intensive task for SMEs, given their typically limited budgets. However, choosing the right topics and methods can yield valuable insights that guide decision-making and strategy. Often, a mix of both qualitative and quantitative research methods provides a comprehensive understanding of the market and the challenges at hand.