In addition, 35 per cent of the small firms questioned failed to acknowledge the strategic impact of marketing on their business

Companies of one to ten employees were the least likely to have built a brand; 58 per cent of this group shunned the creation and communication of brand values within the business.

Those more likely to have implemented a brand strategy were the growing businesses of ten to 50 employees, in which 69 per cent had already introduced brand values.

The industries most likely to have implemented brand strategy were manufacturing (72 per cent), retail (68 per cent) and business services (67 per cent). Public sector organisations were the least likely (41 per cent).

The survey sought opinion from 352 UK small businesses (one to 50 employees). It found that just under half of the businesses that have developed brand values defined them through a management brainstorm; only a quarter conducted a customer audit; nearly one in three consulted the wider company; and one in five used a design agency.

Close to half (43 per cent) of the smallest businesses employing less than ten staff had spoken to family and friends when developing their brand.