The majority of small and medium sized firms could accelerate business growth by 400 per cent if they listened more to their customers and made better use of the feedback they get, indicates new research.

Academics from Kingston University found advice from customers has the biggest positive impact on UK small business growth yet almost half of companies miss out on this valuable insight.

The study also revealed that businesses which use consultants are 3.6 times more likely to have growth in their turnover compared to those that do not, while firms heeding advice from accountants are 2.6 times as likely to grow compared with those that don’t.

 “No business can work in isolation and expect to achieve their maximum potential,” said Gordon Mowat CA, director of business improvement specialists Aspire Management Services.

“The most important person in any business is the customer and what they say should really matter to every owner/manager.

 The study, commissioned by Royal Mail and carried out by experts from the university's Small Business Research Centre, found that at least 44 per cent of SMEs are not tapping into the knowledge of their customers.

However, of those firms that do seek customer views an overwhelming 65 per cent said the advice they received was important or even crucial and the source of information that had the most business impact.

Researchers discovered that over the past three years, 51 per cent of businesses experiencing falling turnover and more than half of businesses experiencing falling employment (53 per cent) did not seek advice from customers.

The research suggests that the UK’s small and medium sized businesses could accelerate their growth potential by nearly four times by making better use of available advice and support services, in particular by tapping into valuable informal networks.

“Small and medium sized businesses are engines of growth and they can really increase their performance and chances of success by tapping into the knowledge of others,” said Tim Rivett, Head of Small Business, Royal Mail.

“A problem shared really is a problem halved, if not solved, and valuable advice from a range of formal and informal sources is available to help them grow.” Ironically, while almost a third (29 per cent) of more experienced entrepreneurs are willing to seek advice, the vast majority of novice owner managers do not despite being the ones who need it most.