Research and development for SMEs – Is it worth it?

Not many business owners are investing for research and development purposes since many of them think about these measures to be unfruitful. But thing is, many might benefit from taking such steps, from improving their processes and making them more productive, to reducing waste and environmental damage. Moreover, there are companies specialised in helping their clients to claim R and D tax credits, which also comes in business establishments’ help. But more about the advantages of research and development for SMEs, in the following paragraphs.

1. The UK Government is implementing reward programs

Well-aware that some companies avoid making credits for R&D purposes, the UK Government implemented in the last few years a reward program for those who are. The reward program can be found under the name of Research and Development Tax Credit Scheme, which means that those corporations that make improvements on their processes, equipment or level of training are entitled to a tax deduction or tax refund. Accordingly to a series of studies, 90% of the companies eligible for an R&D fund still don’t get those. Now that you know that these programs exist and corporations with R&D actions are rewarded, maybe you consider getting a fund yourself. Only think that for every pound spent for such purposes, your company is entitled to receiving 0.26 out of it.  

2. Better understanding of the market and opportunities

Of course, the opportunity of getting some tax money back from R&D projects is a good enough stimulant for many companies, but those having such projects already in development claim that those helped them to understand better the market, identify opportunities and gaps that can be filled by their activity. Also, expansion to new adjacent markets becomes a real perspective as a result of such projects. Another advantage brought by research and development projects is product improvement. These projects truly open new opportunities for the SMEs willing to take their time and money and put efforts in such projects.

3. Innovation prospects

R & D projects certainly bring the benefit of enabling the company to develop new products, innovative products. Oftentimes, these innovation actions concentrate on minimizing waste, increasing the amount of recycled materials, thus maximizing the profits, while minimizing the expenses. This is a real issue with which many SMEs struggle.

4. Collaboration opportunities

Developing more efficient processes and becoming more profitable as a result of R & D projects always brings new collaboration opportunities, especially for small enterprises. These are those enterprises that would benefit the most from a business relationship with a larger player in the industry.

These are four of the most noticeable advantages of investing in R & D projects. So, next time when the opportunity emerges, don’t hesitate, and make a research and development credit. You will certainly be able to finish it considerably earlier, with the reward program implemented by the UK Government. However, make sure to hire a trusty agency to assist you through the process of making a tax claim.

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