Research study: SMEs show growth and optimism amid challenges

November 27, 2024
  • 80% of local businesses are optimistic about the economic outlook, yet operational costs and market competition remain top challenges
  • To stay ahead in the changing market, SMEs invest in digital tools, staff training, and sustainability Digital platforms continue to play a crucial role in business growth, accounting for 25% of SME sales

Barcelona, 27 November – Small and medium-sized enterprises (SMEs) report significant growth and are optimistic about their future, despite ongoing challenges according to new research conducted by Glovo. In collaboration with Statista and Civitta, Glovo, the leading multi-category app, has surveyed over 1,000 SMEs across five markets - Kazakhstan, Morocco, Poland, Romania and Ukraine - as a follow-up survey conducted by the company in 2022. In only two years, the results show a clear shift from local businesses being in “survival mode” to experiencing growth and an optimistic economic situation, while investing to overcome their main challenges.

SMEs experience growth and optimism
The survey, which included retail, grocery, and restaurant businesses, reveals that at least 80% of SMEs in all surveyed markets except Ukraine experienced solid business growth in 2023. More than 80% of local businesses also expect to continue this positive path. In Kazakhstan, 98% of businesses are seeing positive results and expect continued growth in the coming year. In contrast, only 36% of Ukrainian SMEs report growth, with another portion, 32%, reporting they are still operating in "survival mode" due to the ongoing impact of the war without expecting an improvement in the situation in the foreseeable future.

Biggest challenges: rising costs and digital transition
While SMEs are optimistic they continue to navigate challenges. The survey found that market competition, the need for digital transformation and rising operational costs remain a significant concern, particularly in markets like Ukraine and Poland.

In Ukraine, the challenges are deepened by communication blackouts and economic instability, and the difficulty for businesses to find skilled workers, which impacts their competitiveness.

A focus on the future
The study finds that more than 97% of SMEs are responding to these challenges by investing in at least one weak area to be better prepared for the future, with improving their social media & digital presence being the most common one. Other frequent investments being made are dedicated to better digital tools, training staff, improving sustainability efforts, or technical support.

The role of delivery platforms
Delivery platforms continue to be a key revenue driver for SMEs, contributing on average 25% of total sales across markets. Local businesses recognize the valuable support provided by platforms like Glovo, with the top three benefits being reaching new customers, increased revenue, and greater visibility on review platforms.

Glovo’s ongoing support for SMEs is reflected in the success of its Glovo Local program, launched back in 2022, which includes marketing tools, training and opportunities for businesses to enhance their digital skills, helping SMEs navigate the complexities of the digital economy and supporting them on the previously mentioned challenges.

Ferran Casulleras, Global Commercial Senior Director at Glovo, commented: "Two years ago, our research showed SMEs were operating in survival mode, struggling to navigate the post-pandemic economy. Today, while challenges remain, it’s encouraging to see that SMEs are not only growing but are also embracing the digital economy by proactive investing in digital transformation and with the help of on-demand delivery platforms. Delivery platforms have become indispensable revenue streams, and we remain committed to supporting our partners’ growth through innovation and training."

ENDS.

Methodology

Glovo conducted a survey of 1,000 Small and Medium-sized Businesses (SMEs) in the food, retail and grocery sectors across five countries (Morocco, Romania, Poland, Ukraine and Kazakhstan). SMEs were defined as businesses having fewer than 250 employees.

The study was executed in collaboration with Statista in Morocco, Romania, Poland and Kazakhstan and with Civitta in Ukraine. Both are renowned research and data analytics companies with expertise in providing market insights. All research institutes were given the same questionnaire (slightly adapted to fit market needs) of 26 questions to survey up to 250 decision-makers per market at local businesses in the food, restaurant, and retail industries.

The sample was designed to represent the different types of establishments and regions in each country and aimed to identify key challenges for SMEs, asses the role of technology in maintaining competitiveness and identify growth opportunities.


About Glovo
Glovo is a pioneering multi-category app connecting users with businesses, and couriers, offering on-demand services from local restaurants, grocers and supermarkets, and high street retail stores. Glovo’s vision is to build the largest online marketplace to give everyone access to anything in their city within minutes. Founded in 2015 in Barcelona, it operates across 23 countries in Europe, Central Asia, and Africa.