Subj : "Digital drag" is holding back UK SMBs from competing
To   : All
From : TechnologyDaily
Date : Tue Oct 03 2023 10:15:04

"Digital drag" is holding back UK SMBs from competing

Date:
Tue, 03 Oct 2023 09:02:23 +0000

Description:
SMBs are slow to digitalize despite post-pandemic online push, costing 
revenue and jobs, Xero report finds.

FULL STORY
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According to new research from Xero, SMBs are lagging behind larger companies 
and enterprises when it comes to their digital revolutions, which could be 
costing the British economy alone up to 77.3 billion in lost revenue. 

The study noted that small businesses with up to nine employees account for 
almost 95% of all UK companies, yet they only contribute around 15% of the 
UKs total turnover. 

Currently accounting for 8.9 million jobs, Xero reckons better digitalization 
could bring 885,000 more jobs to the British economy. SMBs need to digitalize 
more quickly 

With a broad look at the past four years, Xeros study found that the SMBs 
that digitalized the most had increased their revenue by 8.1%, compared with 
a 4.7% decline for the slowest adopters. 

The pandemic is credited with pushing many SMBs online, however only 
one-third (30%) of those questioned have increased their use of digital tools 
since 2019, indicating that the shift is seen as one of necessity rather than 
a beneficial one. 

A similar trend is true of AI adoption, whereby larger companies appear to be 
more willing to get on board with the technology. 

Around two in five struggle to see the relevance of new technologies to their 
company (40%) and the value for money relating to adopting more tech (39%). 

Referring to SMBs as the nations army of tiny firms that pack[s] a punch, 
Xeros UK Managing Director, Alex von Schirmeister, said that they each have 
unique priorities and treating them as a catch-all group is not a solution. 

Looking ahead, Xero suggests that SMBs navigate this digital drag by setting 
clear expectations and prioritizing the right solutions. Its about balancing 
the costs with potential benefits and adapting as priorities and solutions 
change. More from TechRadar Pro Weve rounded up the best online collaboration 
tools and the best productivity apps Are you working from home? Heres the 
best video conferencing software AI could unlock "billions" for small 
businesses - if they let it



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Link to news story:
https://www.techradar.com/pro/digital-drag-is-holding-back-uk-smbs-from-compet
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