According to recently released research, a sustained 1% annual productivity uplift across the UK’s 5.6 million SMEs would raise national output by £94bn
UK small- and medium-sized businesses (SMEs) could unlock £94bn a year by tackling project inefficiencies, according to digital skills training provider, The Coders Guild.
An article from the guild brings together a range of sources to show how project management training could potentially unlock significant savings for SMEs.
The Coders Guild refer to statistics from the Federation of Small Businesses (FSB), showing that as of the start of 2024, SMEs make up 99.8% of all UK businesses, accounting for three-fifths of the employment and around half of turnover in the UK private sector.
According to research from independent business support organisation, Be the Business, a sustained 1% annual productivity uplift across the UK’s 5.6 million SMEs would raise national output by £94bn, equating to around £65,000 in extra profit per small firm.
Knowledge workers reportedly lose an average of 13.7 hours per week, according to the article – equivalent to over £13k per employee annually – through issues such as tool-hopping, duplication, and unclear task ownership.
In a typical five-person team, this equates to an estimated £66,000 every year of what The Coders Guild refers to as “wasted salary value”. This is closely equivalent to the impact of the 1% uplift referred to by Be the Business.
Based on this information, the guild has issued a call to action for UK SMEs to adopt better project management practices and reduce informal working methods through formal training.
Crispin Read, founder of The Coders Guild, says: “These hidden losses are avoidable – and fixable.
“Most SMEs rely on ‘accidental’ project managers with no formal training. That’s not sustainable. Project leadership is a skill, not a side job. And the ROI on getting it right is phenomenal.”
According to Read, project management training can halve wasted investment from 8.8% to just 4.8%, allowing for protected margins and improved delivery outcomes.
“Proper project management isn’t overhead – it’s the shortest route to improved margins and happier teams,” says Read.
“With simple tools like Kanban boards, project charters, and risk logs, SMEs can cut wasted time by hours per week per person.”
The Coders Guild offers a range of project management apprenticeships and skills bootcamps, which it labels as “the fastest route to capturing lost value.”
Another article from Joe Phelan, a business savings expert from money.co.uk, highlights how SMEs could risk falling further behind as AI technology increases in its scope and prevalence.
Phelan comments: “In an era where AI is transforming how we work, compete, and innovate, many UK SMEs find themselves behind the curve.”
The article points to figures from the Institute of Coding, showing that fewer than one in three SMEs feel confident about embracing AI, with a lack of skills and training standing out as the biggest barriers.
The report suggests that while over half of SMEs believe AI will be critical to the future of business, only a quarter believe they have the ability to implement it safely and effectively.
A study from Employment Hero also found that 54% of SMEs use AI tools less than once a month, while more than a third have never used them at all.
Phelan says: “Separate studies by the Institute of Coding and Employment Hero reveal a clear trend: despite recognising the benefits of AI, many smaller businesses are being held back by gaps in training, unclear strategies, and uncertainty about whether they can afford to invest in the right tools and support.”
While these obstacles can create a confidence and skills gap, according to Phelan, many small businesses can catch up if provided with clearer guidance on where to start.
The business advisor points to the UK government’s AI Opportunities Action Plan and TechFirst programme as potential avenues to wider knowledge amongst SMEs. The programme aims to train 7.5 million workers by 2030 in modern technology such as AI.
Phelan concludes by saying: “Beyond the clear opportunities, it’s important for SMEs to approach AI adoption with a level head.
“That means taking steps to safeguard customer data and online systems, and making sure any AI tools reflect the business’s values and meet regulatory standards. A sensible way forward is to begin with a small, well-defined pilot project – one that allows you to test the waters, learn what works, and shape a broader strategy without rushing into a full-scale rollout.”