Wales Online has reported that SMEs in the UK have the potential to significantly boost the economy if they focus on investing in new technology. According to recent research commissioned by Three Business, the UK economy could experience a £79 billion increase in the next year if small and medium-sized enterprises prioritize technological investments. This could lead to additional Exchequer receipts of over £25 billion annually, surpassing the current £22 billion target set by the Chancellor to address the public sector financial gap.
The study, which involved economic analysis and polling of over 2,000 SMEs by YouGov, revealed that 40% of SME business leaders believe that productivity would rise with investments in artificial intelligence and other digital technologies. Additionally, 43% expressed that such investments would make their operations faster and more efficient. Despite the evident advantages of investing in technology, 42% of SMEs are worried that the challenges associated with adopting new technologies could hinder their future growth. Moreover, over half (55%) cited concerns about the costs involved in technological upgrades.
A substantial portion of SMEs (42%) indicated that they struggle to prioritize tech investments, while a similar percentage (43%) expressed fears of missing out on emerging technologies. Nearly all SMEs emphasized the importance of having a reliable (97%) and high-speed (94%) internet connection for their businesses, ranking it higher than factors like good transport links (64%), sufficient office space (69%), and access to skilled labour (83%). However, more than half (53%) mentioned that poor mobile connectivity in their area could impact their growth potential negatively.
The findings also highlighted the challenges faced by UK businesses in terms of connectivity, with 5G availability and download speeds lagging behind Europe. The UK ranked 22nd out of 25 European countries for 5G availability, with London placed last among ten European cities. Furthermore, the UK’s general network speed ranked 26th out of 31 European countries. Mike Tomlinson from Three Business emphasized the crucial role of technology in driving business growth and productivity, pointing out the importance of supporting businesses in adopting technologies to enhance productivity.
Anthony Impey, CEO of Be the Business, underscored the significant contribution of small and midsize businesses to the UK economy and the government’s mission to foster growth across the country. Impey highlighted the hard work of SME leaders and stressed the necessity of leveraging new technologies, including Generative AI, to boost productivity, innovation, and overall business capacity.
In conclusion, the research indicates that SMEs in the UK have a substantial opportunity to drive economic growth through strategic investments in technology. Embracing digital innovations could not only enhance productivity and efficiency but also position small businesses to thrive in a rapidly evolving business landscape. Collaboration between the public and private sectors, as well as a focus on improving connectivity infrastructure, are crucial elements in supporting SMEs and unlocking their potential for economic advancement.
The future success of SMEs and the UK economy as a whole may hinge on the proactive adoption of technological solutions and the creation of a supportive environment that empowers businesses to innovate and grow.