New research from American Express shows that small and medium-sized enterprises (SMEs) led by owners with strong professional networks experience markedly higher growth and profitability – indicating a powerful competitive advantage that networking can provide.
The Peer Power study highlights a clear connection between the strength of professional networks and improved commercial performance; SME owners citing robust networks are almost twice as likely to report revenue growth in the past year compared to those with weaker networks. Likewise, 86 per cent of respondents with strong networks said their businesses were profitable last year, compared to 66 per centamong those who stated they had weaker networks.
Moreover, business owners who turn a profit tend to rely on their networks more often (63 per cent) than those merely breaking even or operating at a loss (50 per cent), suggesting that staying connected with peers can contribute to success.
Based on responses from 500 founders and owners at UK SMEs, the research found that over nine in 10 (93 per cent) said their professional network had directly led to new business leads in the past year, and three-quarters (75 per cent) regard their professional network as essential to growth.
Yet, a lack of meaningful connections remains a barrier for many; nearly six in 10 (58 per cent) wish their network was stronger; over two-fifths (41 per cent) of respondents acknowledge not having the right network limits their business’ potential, and almost a third (32 per cent) think they aren’t good at networking.
Ruchi Sharma, VP UK Commercial at American Express, said: “At American Express, we understand that connection drives growth – whether that’s through trusted partnerships, customer relationships, or peer-to-peer collaboration. Our research suggests that networking is more than just a soft skill – it’s a strategic growth lever. SME business owners who spend time in building meaningful connections unlock new opportunities and stronger commercial performance.”
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