Source Marketing Direct reports that Small and Medium-Size Enterprises (SMEs) are contributing more than large firms to the growth of the UK economy. Reinvesting back into the local economy has remained a priority for the firm according to MD Hector Montalvo.
The Federation of Small Businesses (FSB) has conducted research which reveals that a much larger proportion of the money spent with small businesses by local authorities is reinvested back into the local economy. Local authorities spent £8.7 billion on goods within their local area last year; for every £1 spent with SME 63 pence was reinvested in the local area. This compares with just 40 pence for every £1 spent with large local businesses. In total, £500 million less was spent with SMEs than large businesses, yet SMEs contributed £746 million more for the local economy. Source Marketing Direct MD Hector Montalvo said: “This report proves what we at Source Marketing Direct have been aware of for a long time –the key to the UK’s economic recovery lies with the creation of small businesses. Small local businesses spend more locally, and create more local jobs; they are also likely to be more loyal to the local area than large corporations.”
Source Marketing Direct was incorporated in the UK in 2008 in response to demand from service and entertainment clients to provide a more personal marketing approach. Source Marketing Direct provides clients with face to face events-based marketing, which allows for a measured, quantifiable result and a greater ROI. Due to their success in this field, Source Marketing Direct have recently begun test piloting a business to business merchant campaign which MD Hector Montalvo intends to expand in the coming months. Source Marketing Direct has bases in London, Hampshire, Bedfordshire, Scotland, Merseyside and North East England and MD Hector Montalvo believes that the company is very much a ‘local’ enterprise: “We trade almost exclusively with local contractors in each location, which provides work opportunities and income for local communities. The private retail sites where we conduct our marketing campaigns are mostly within the local authority and we deal with a local customer base, so again money is being reinvested into the local economy. I am also very excited about the merchant campaign which we are currently piloting, as this offers local SMEs the opportunity to increase their customer base while cutting costs. Overall, we are proud to be among the many SMEs that are assisting with the UK’s economic recovery,” said Hector Montalvo, MD of Source Marketing Direct.
Source Marketing Direct is an outsourced sales and marketing firm that represents British brands and trades with local suppliers.
Source:
http://www.prbmp.com/news-item/local-smes-boost-local-economy-says-report