Trust crisis costs UK tech SMBs GBP £102k each year, finds study

A new report reveals an online trust crisis costs UK tech small and medium-sized businesses (SMBs) thousands of pounds each year. The research, commissioned by B2B Stars, highlights that a third (33%) of UK tech SMBs face increasing difficulties in trusting people and companies they encounter online, resulting in costly errors.

The report indicates that nearly 38% of tech businesses struggle to build trust with new contacts. Additionally, 32% find it difficult to distinguish between fake and genuine profiles on platforms such as social media. This lack of trust contributes to significant financial losses, with an average of GBP £102,000 lost annually per business due to poor decisions influenced by unreliable information and misleading claims.

Raffaele Apostoliti, CEO of B2B Stars, commented on the findings: "The digital landscape has created fantastic opportunities for businesses to connect, but without trust, these connections can become liabilities. Small businesses are particularly vulnerable because they don't always have the tools to verify whether the companies they're dealing with are real and which of the companies are the right ones to partner with. And when things go wrong, it's not just a missed opportunity – it's a significant financial hit."

The trust deficit is exacerbating the financial pressures many small companies face. Current government data shows that nearly one in three (31%) SMBs fear they may be forced to close by the end of the year due to mounting financial pressures. Apostoliti added, "Small businesses are the backbone of our economy, and they rely on trusted connections to survive and grow. But when you can't tell who to trust, it slows everything down – businesses become isolated, hesitant to take risks, and they miss out on opportunities. We need to create stronger insights online, which can boost trust across businesses."

The report also suggests that inefficiencies and ineffectiveness in finding the right companies to partner with lead to further reduced competitiveness and growth in the UK's tech SMB sector. Without trusted connections, the increasing isolation of these businesses could have severe long-term consequences.

Apostoliti proposes community-based solutions as a way to rebuild trust. "The antidote to this 'trust deficit' is community. By fostering online spaces where businesses can connect with transparency and confidence, we can rebuild the trust that's been lost." He stresses the importance of new approaches prioritising transparency and community, urging stakeholders to help businesses develop trust-based relationships to mitigate the risks of unreliable connections.

In light of these findings, the report underscores the critical need for enhanced transparency and community engagement within the digital landscape to address the trust deficit facing UK tech SMBs. By prioritising initiatives that foster reliable connections and support collaborative environments, stakeholders can help mitigate the financial losses experienced by these businesses and create a more resilient ecosystem for growth and partnership in the future.