Over a third of UK SMBs falling behind competitors as technology confidence gap creates two-speed economy
SMBs at an inflexion point as technology adoption becomes crucial for new business, reputation and profitability
Today, Babble has released findings from its inaugural Technology Performance Index which found that despite nearly nine in ten (88%) of SMB leaders believing technology to be critical to improving business performance, less than half (47%) are very confident in their ability to adopt and deploy it effectively.
The research identifies three distinct groups of SMBs: Tech Vanguards (25%), businesses successfully embedding technology to drive growth and productivity; Emerging Adopters (41%), organisations making progress but facing barriers to implementation; and Tech Bystanders (34%), firms struggling to adopt new technologies and at risk of falling behind.
The core issue dividing these groups is confidence. Tech Vanguard respondents are more than twice as likely as Tech Bystanders to be very confident in identifying the right technology for their business (65% vs 26%). Similarly, 84% of Tech Vanguard businesses say they have strong leadership, governance and repeatable processes in place to identify, implement and scale technology-led change, versus just 3% of Tech Bystanders.
The gap that is emerging is having a detrimental impact on the adoption of specific technologies within SMB organisations, with the Tech Vanguard ahead of the Tech Bystanders in employee productivity and collaboration technologies (67% vs 36%), customer experience (60% vs 28%) and cyber security tools (70% vs 43%).
It is also slowing the integration of frontier technology, with more than half (57%) of Tech Vanguard businesses stating that AI and automation technologies are already delivering measurable value, compared to just 21% of Tech Bystanders.
Leaders are already concerned about the commercial consequences of falling behind. Over a quarter (28%) believe they will lose new business to competitors who are embracing new technologies faster than them, while 24% state they could lose existing customers, and 22% worry their company reputation would be damaged.
“SMB leaders know technology improves performance, but too many lack the confidence, board level buy-in, skills and time to actually find the right technology for their business.” said Mark Braund, Executive Chair at Babble.
“However, we are at a critical juncture. The businesses that fail to build technology confidence now risk becoming trapped in a cycle of inefficiency, missed opportunities and declining competitiveness. Many of these businesses are well positioned to adopt new technology, unencumbered from legacy infrastructure and siloed data. Those that act now can create stronger foundations for innovation, accelerate growth, and play a vital role in powering the future UK economy.”
Find out more about the Technology Performance Index and download the report here.
