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Small businesses have a huge opportunity to use technology to overtake their larger, slower-moving competitors.
A study by recruitment agency Nash Squared found that UK SMEs are three times more likely than large companies (49% vs. 18%) to invest more in technology.
Nash Squared CEO Bev White says small business owners and operators who are sensitive to the opportunities presented by digital transformation can have a greater impact on the market than ever before. .
“In a highly interconnected world, the playing field is much more level between large and small businesses, both of which can reach customers, employees, or potential new hires around the world. ‘ she says.
SMB Group, an analyst firm that tracks technology trends for small businesses, also reports high enthusiasm for IT investments. More than half (54%) of small businesses say they plan to spend more on technology.
Analysts say small businesses with digital transformation strategies in place and initiatives ahead are three times more likely to enjoy revenue growth in 2020 and beyond than those without plans is.
As such, many SMEs are already seeing the fruits of digitization. These SMBs are using core technologies such as the cloud to pivot and take advantage of new opportunities. This is critical in today’s rapidly changing global economy, he says.
“The great advantage small businesses have is agility, their ability to change and adapt. I can not do it.”
There is evidence that many small business owners find their inherent agility to be an advantage. Nash Squared reports that small businesses (23%) are twice as likely as large companies (10%) to be very or very effective at scaling good ideas and stopping bad ideas quickly.
Tina McKenzie, policy and advocacy chair at the Small Business Federation, says her organization has seen clear evidence of SMB agility over the past two years.
“During COVID-19, while many businesses with physical presences have adapted and created online presences that have taken off, many individuals have launched ‘sideline’ online businesses, It has now grown into an important company as people bring new ideas to the digital space. ”
Moreover, McKenzie expects this trend to continue. Small business owners have seen the positive benefits that technology and its online platforms can bring, but now they want more.
“The digital economy is essential for small businesses and offers great opportunities to reach new markets and customers,” she says.
But it’s not all good news. Many SMBs face stiff competition, have limited resources and, perhaps most importantly, find it difficult to save time and money and invest in technologies that help them innovate and grow. .
SMB Group co-founder and partner Laurie McCabe says small businesses looking to gain an edge can face tough challenges.
“On the other hand, small businesses lack the hierarchy and bureaucracy for their decision-making process, so they can make the decision to pivot, try something else, and deploy the technology to support it more quickly. she says.
“On the flip side, they don’t have a lot of bandwidth. Not just technology bandwidth, but process bandwidth. Whenever a small business needs to make a change, it’s a lot of work. ”
As such, many small businesses have the potential to move faster than much larger companies, but lack the resources, both time and money, to anchor a radical and effective digital transformation. doing.
The net result of this can be dither and lag, McCabe warns.
Even if the decision to enter the IT market is made, SMBs can be bogged down by a mismatch between in-house technical expertise and external marketing prowess.
Small businesses, by definition, have fewer people to implement and implement change. The scarcity of dedicated IT resources means that technology choices for small businesses must be intuitive, both in terms of how they are used and the return on investment for the business.
Unfortunately, evidence suggests that use cases are hard to articulate. With so many vendors proposing solutions, the technology’s potential benefits are lost in an exaggerated marketing cacophony.
“Everything they sell will make things faster, easier and cheaper,” says McCabe. “They’re all saying the same thing. As a small business, I need to think about, ‘What really moves the needle for me in the areas where I feel stuck?'” https://news.google.com /__i/rss/rd/articles/.”
So what’s the big takeaway from McCabe for those running small businesses and looking to take advantage of digital technology? The answer is simple. Before thinking about the possibilities of digital solutions, focus first on the main challenges.
“What are the things that you need to do really well, the things that you need insight into, and the things that need to go smoothly,” she says. Please be really focused on supporting the
Small businesses with limited resources and multiple challenges, such as answering customer inquiries, improving supply chain processes, and increasing their e-commerce presence, can’t do it all at once.
Do it with one goal, like using the cloud and automation to reduce your reliance on spreadsheets and paper-based processes.
“Really focus on what you have to do well. Technology can help you do those things better, so you can do them faster. You can spend less time on the low stuff, they can spend more time doing what they need to do to help you grow,” she says.
“And another big benefit is that automation gives us the information and reports to assess how the business is doing, and we can effectively make course corrections.”
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