Only 37% of European SMEs are seriously engaged in Business Model Innovation, research shows’
Business Model (BM) Innovation offers great potential for small and medium sized businesses to improve innovativeness and performance. However, according to a new study conducted by the Envision project, only 37% of Europe’s small and medium sized companies are seriously engaged in BM Innovation. The top 5 reasons companies undergo BM Innovation include minimizing costs, redefining product offering, scaling of business, price competition and changing customer needs. Drivers for BM innovation are strategic considerations, abundant technological opportunities and – surprisingly – low competition intensity. The more intensive SMEs do BM Innovation, the higher their overall performance. The study was led by Delft University of Technology and University of Murcia.
The potential of business model innovation can lead to €30bn in added value, high level meeting sums up
On December 13th 2016, Envision project organized “BusinessMakeover Fest”, a high level meeting to EU decision makers, universities, SME associations and SMEs across Europe. Participants in the meeting included among others European Association of Craft, Small and Medium-Sized Enterprise UEAPME, which is the voice of 12 million SMEs in Europe. The BusinessMakeover Fest contained cases on how ordinary businesses, such as bakery, hardware store, sewing atelier, hamburger restaurant have changed their business model; and a panel discussion on SME issues around Europe. Wil Janssen from business innovation tool development company Innovalor Ltd chaired a session that discovered, “if 3 million small and medium sized companies around Europe carry out BM innovation they have the potential to increase their yearly added value by €30bn”.
Recognizing SMEs’ pivotal role in economic growth, large institutions like the Organization of Economic Cooperation and Develop (OECD), EU Commission and multiple Universities have concentrated their efforts on facilitating and promoting BM Innovation among SMEs. The OECD claims that economic recession and globalization pose great threats to SMEs, prompting a greater need for innovation. Business model innovation is therefore not only called for but it will be essential to maintain the current economical position of SMEs in Europe.
Businessmakeover.eu portal with 29 tools released in six languages
Envision project carried out 85 in-depth SME case studies to learn the needs of companies for business model innovation and tools. Based on the findings, businessmakeover.eu portal was developed and finally released in the BusinessMakeover Fest in Brussels. It contains 29 easy-to-use tools for business development in small businesses, which are the backbone of Europe. The platform is featured in six languages: DE, EN, ES, FR, IT, PL. The portal is free for everyone and is targeting to attain 3 million users already in 2017.
Businessmakeover.eu portal won 1st prize with its beta version in November
The beta-version of the portal received prestigious Computable Magazine prize for ICT provider of the year for SMEs in November. The prize was handed over to the Envision project in a gala on 1st November.
For more information, go to businessmakeover.eu or contact us directly. We also have press package available.
This press release and pictures can be found at Press release 2017
Mark de Reuver, Associate Professor at Delft University of Technology, +31 15 27 81920, firstname.lastname@example.org