New research indicates that small and medium-sized enterprises (SMEs) in the UK have the potential to significantly boost the economy by investing in new technology. The research suggests that if SMEs prioritise investment in technology, the UK economy could see a £79 billion increase in the next year. This could result in an additional £25 billion in Exchequer receipts annually, surpassing the £22 billion needed to address the current financial gap in the public sector.
A study commissioned by Three Business, which involved economic analysis and polling of over 2,000 SMEs by YouGov, revealed that 40% of SME business leaders believe that productivity would improve with investments in technologies like AI. Furthermore, 43% feel that adopting digital technologies would make their businesses faster and more efficient.
Despite the potential benefits of technology investment, 42% of SMEs are worried that challenges in adopting new technologies could hinder their business growth. More than half (55%) are concerned about the costs associated with such investments. Additionally, 42% of SMEs struggle to prioritise tech investments, while 43% fear they are missing out on emerging technologies.
The research also highlighted the importance of reliable and high-speed internet connectivity for SMEs. Nearly all (97%) of the surveyed businesses considered a reliable internet connection crucial, while 94% emphasized the need for high-speed internet. These factors were deemed more significant than having good local transport links, sufficient office space, or access to skilled labour.
However, over half (53%) of SMEs expressed concerns about poor mobile connectivity affecting their ability to expand. The current state of connectivity in the UK lags behind that of other European countries, with 5G availability and download speeds falling significantly short. The UK ranked 22nd out of 25 European countries in terms of connectivity, with London being the last among 10 European cities. Moreover, the UK’s general network speed ranked 26th out of 31.
Mike Tomlinson of Three Business emphasized the role of technology in driving business growth and productivity. He highlighted the importance of supporting businesses in the tech sector and promoting the adoption of technologies that enhance productivity. The potential merger of Vodafone UK and Three UK could lead to a significant investment in the UK’s mobile infrastructure, creating a top-tier 5G network to drive economic growth and innovation nationwide.
Anthony Impey, CEO of Be the Business, acknowledged the vital role of SMEs in the UK economy and their contribution to the government’s agenda of fostering growth and opportunity across the country. Impey stressed the hard work of SME leaders and the importance of leveraging new technologies, such as Generative AI, to boost productivity, foster innovation, and support growth in these businesses.
