UK SMEs are the most tech savvy in Europe, according to a new study. Those with the most up to date technologies are most successful at growing their business.
Despite this, many government bodies and schemes have their own definitions of what an SME is. Things like a company’s number of employees and its turnover or balance sheet total can factor into these definitions.
1. They’re more open to digital transformation
For millions of UK SMEs the choice is no longer whether to embrace digital transformation, but how. IONOS’s State of Technology report found 79% of these businesses believe it’s important to have an online presence and modern image, and that customer hyper-personalisation is essential.
As such, they carry significant clout in shaping the direction of business technology.
Those pushing the boundaries of future technologies such as AI and blockchain are typically nimble, fast-growing SMEs. Yet, they face a number of barriers to exporting their products and services abroad, including cultural differences and regulatory restrictions in individual countries. There are also concerns over access to trade finance, investment tax relief incentives and a lack of clarity around VAT implications when entering new markets. Despite these challenges, UK SMEs remain positive and optimistic about their future.
2. They’re more innovative
There’s a lot to like about UK tech SMEs. They’re often at the forefront of innovation, developing new products and services that have global appeal. They’re also well-connected to international markets and have a wide network of partners and customers.
In addition, many UK SMEs have a strong record of exporting their products and services abroad. However, the current economic climate is reshaping the SME landscape for the year ahead.
Not all SMEs are created equal, though. In fact, there are around 5.7 million SMEs across the country. This includes micro-enterprises with fewer than 10 employees, small businesses with 10-49 employees, and large companies with 250 or more employees. This classification might seem trivial, but it does matter when it comes to things like switching energy suppliers or accessing government support schemes.
3. They’re more tech savvy
The UK has a long history of leadership in cutting edge science and research. The technologies that powered the first industrial revolution – steam engines, power looms and blast furnaces – were developed here. And the fundamental concepts behind modern computing were pioneered by Charles Babbage and Ada Lovelace nearly 150 years ago.
That means upskilling workers and broadening access to STEM (science, technology, engineering and maths) degrees.
We must also make the UK a magnet for international talent. That means promoting our open immigration policy and strengthening the ecosystems of support for entrepreneurs.
4. They’re more tech savvy than their competitors
In terms of tech savvy, the UK does indeed punch above its weight. But more can be done.
Creating an environment in which small businesses are able to access and adopt new technology will be vital to future-proofing the economy. And, as SMEs make up 50 per cent of all businesses in the country and employ even more people, improving their access to these new technologies will help everyone.
Ultimately, it’s up to government to help the UK retain its lead in cutting-edge innovation and create an environment that is attractive to small businesses and the entrepreneur spirit. This can be done by helping to remove barriers to R&D and by encouraging the use of the R&D Tax Credit scheme. This could be achieved through a national campaign that highlights the benefits of this policy to businesses and encourages them to get involved needs read more hear.
