smallbusiness.co.uk: Helping your business think big

Many small businesses are falling behind the competition as technology progresses, says a new report launched today and developed by the Centre for Future Studies.

The study of 1,269 business owners, directors and IT managers, claims to ‘lift the lid on the IT skills challenges SMEs face’, saying that SMEs are missing out on the opportunities that technology presents. The technology skills, services and products that a business employs are critical to its growth and success as well as helping to ensure swift and competent customer service levels.

The report shows that SMEs do understand the importance that technology plays in their business with 86 per cent acknowledging that it is pivotal to their long term success. But whilst they are doing their best to embrace technology, they are having difficulty managing it and identifying where their business is falling down.

The majority of owner-managers do not, however, feel that they are missing the necessary expertise. Four out of five (79 per cent) do not think their business lacks IT skills and only nine per cent are dissatisfied with the technical skills of their staff. However, more in-depth interviews are said to have found that up to half of small businesses have deficiencies in their IT knowledge and skills, and as a result are unable to manage the technologies to optimise the benefits for their business.

This is further compounded by a lack of resources. They are unable to employ a dedicated IT professional and instead are over-reliant on family and friends to provide IT advice. Across the board, essential skills in managing, purchasing and operating technology are missing.

Dr Frank Shaw, foresight director, Centre for Future Studies, says: ‘Consumer expectations are increasing as they experience a better level of service. All of this is driving IT investment and SMEs need to deliver on service whilst also accommodating changing work patterns, which meet their employees’ expectations. Innovation is the key if SMEs want to compete in today’s domestic and world markets.'

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