![Guardian Small Business Network Panel discussion and Q&A - How can small businesses and creatives tap into the digital economy? Emma Jones (Enterprise Nation), Mark Dawson (author), Chair: Claire Burke, Guardian Small Business Network Editor, Katie McQuaid (Amazon Marketplace), Sanjana Karnani (Virdure Plus), [AWS USER]. Amazon Academy / Guardian Small Business Network event, held at the Amazon Fashion Photography Studios in East London](https://media.guim.co.uk/2f404adddb140c69b6cac31d0ee5a63b20fc6ace/0_166_4980_2988/1000.jpg)
While the current economic climate might be making some SMEs feel uncertain, the digital revolution can help the entrepreneurially minded flourish nevertheless.
Katie McQuaid, who leads the company’s Fulfilment by Amazon offering in the UK, argued during a Guardian Small Business Network panel discussion at the recent Amazon Academy event that British small businesses are especially dynamic.
“What I really admire about all of the UK businesses that we work with on a daily basis is how they are always ready to take that next step to reach their goals,” says McQuaid. “That is a fantastic strength, as their ambition is what drives them to grow their business and succeed, particularly when it comes to looking beyond the UK to start selling globally.”
This thirst for international trade among UK entrepreneurs is exemplified by Ricky Kothari, the founder of tea retailer T-Sticks and a member of the audience during the panel discussion.
Kothari decided to launch in China after meeting former Prime Minister David Cameron.
“He said ‘why don’t you sell tea to China?’ and we thought that is not a bad idea,” said Ricky Kothari. “We came away from that meeting thinking let’s try something completely radical, it is going to cost us and is a massive risk, but let’s go export.”
The brave decision paid off in spades and the company has sold 4m units this year, and 85-90% of its sales are export.
Sales are being driven by demand in China and India, the countries where T-Sticks sources its tea.
“We get the tea from there and bring it back to Europe, reprocess it, blend it in the UK and take it back out there and give it to them in a different format,” says Kothari.
Alongside making global trade significantly simpler, the digital revolution has also made it possible for small businesses to communicate with customers much quicker.
Sanjana Karnani, founder of health product retailer Verdure Plus and a seller on Amazon Marketplace, says Amazon’s digital services help her “develop relationships with customers”.
“It is spontaneous,” said Karnani. “A customer sends me an email now, and I can respond in five minutes or a maximum of 24 hours. Customer service is the biggest beneficiary, and that leads to customer satisfaction and growth in the business.”
The leap forward in technology has meant that customer expectations are increasing, in terms or product selection, great value and fast speed of delivery, as well as getting helpful customer service.
In addition to Amazon handling storage, picking, packing and posting for small businesses through Amazon Marketplace, the company will also handle all customer service on their behalf, so they can spend more time coming up with great product ideas rather than dealing with logistics.
“The more time you can free up so your interactions are about building your brand and less about ‘where is my stuff’ then the better it is for your business,” said McQuaid.
Mark Dawson, a self-published author who publishes primarily on Amazon and whose books have been downloaded over 2m times, attributes his success to devoting time to proactively engaging with his readers.
“The main thing I’ve focused on with laser like precision is contacting my readers and responding to their emails,” said Dawson. “You need to turn them from browsers into readers by persuading them to buy the book, then you turn them into fans, then you turn them into friends, then you turn them into super-fans.”
Dawson turned to Amazon’s Kindle Direct Publishing service to have more control over his career.
“I’m now effectively the author and chief executive of a one man publishing company and I’m in charge of advertising, promotion, contacting my readers and responding to them,” said Dawson.
Another audience member Paul Durrant, who runs an independent sales consultancy, is working on a book on ethical business as a means of upscaling his business by raising his profile.
He is considering the direct publishing route because he likes the royalty rate and opportunity to market the book.
However he believes if he were to self-publish, the time requirements would require him to take a holiday from his consultancy work or call time on some volunteering commitments.
Both Dawson and Karnani have found the digital economy has allowed them to spend more time with their young families, while still earning a decent living.
Dawson has done so by cutting out a three-hour commute by becoming a full-time self-published author.
“I’m still working very hard but it is a more focused kind of work,” said Dawson.
The benefits of the digital revolution are palpable and Emma Jones, founder of business support group Enterprise Nation, is quick to sing the praises of the technology companies making it all possible.
“It is companies like Amazon who are stepping up at the moment,” said Jones. “They are helping facilitate everything to happen. There is a lot on the shoulders of small businesses – it is you guys who have to stay confident in this time of turmoil.”
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