• “I can’t find the technology to meet my needs”
• “adoption looks too hard, too costly”
• “switching feels like a big risk. I worry about losing control and critical data”
• “we lack expertise and execution support”
• “my employees don’t want to change the way they do things”

These are the worries, fears and barriers to tech adoption according to leaders of small- to medium-sized enterprises (SMEs). 

Responsible for over 50% of private sector turnover, small businesses raked in an impressive £2.3 trillion in 2021. And yet SMEs often lack the resources, capacity and know-how to successfully harness the power of digital technology.  Just think of what this sector could be making.  

“The number that recognises they have a skills gap in the workforce, specifically digital skills, is relatively high, but those attempting training or any kind of measure to address that gap is low,” says Mark O’Mahoney, Senior Communications Manager with Be the Business, an independent not-for-profit with a single goal. It focuses on helping companies realise the full benefits of tech and utilise the products and programmes they invest in, to boost profitability and streamline operations. Mark says: “Small businesses think they know about tech but if you ask about their deep understanding of it, the statistics drop.”  

In 2020, Be the Business conducted an analysis of 1,500 UK SMEs to find out how they use tech, and what is or isn’t working. Despite the Covid-19 pandemic forcing whole industries online, there’s still a lag time for SMEs.  

Lilli McGeehan, Senior Partnerships Manager says:

“When speaking to small businesses about who’s responsible for ‘digital’, everyone is relying on the younger generation to do the digital stuff. We’re focused on the decision-making processes that go alongside the tech and general management practice, to ensure that technology is integrated or used in the right way by teams.”

Mark adds: “Employees are frustrated because they’re not using the system the way it was designed. This drives a cycle of not really getting the best out of tech. You’ve got an expensive system but it’s delivering just x percent of what it’s supposed to in terms of productivity uplift, process improvement and profitability.”

Be the Business says that training and support should also focus on the ‘missing middle’ – those who are tasked with running the digital transformation projects and then training staff to use it – often a process that lasts for months.

Mark says: “It doesn’t need to be super in-depth; we just want to avoid the manager saying ‘oh, that’s something for the IT guys to do’. They don’t need to know all the details, but the strategic benefit and application of the tech.”

In collaboration with SMEs, suppliers and government, Be the Business has 6 recommendations to step-up digitisation:

Almost 70% of people employed in the UK work in low-productivity businesses. The majority of these companies have fewer than 250 employees. By embracing tech, reports estimate that up to £100 billion could be added to the UK economy.

Now that’s worth the investment.