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UK SME growth hit by technology 'blind spot'

1 min read

03 April 2014

Britain's small and medium businesses are putting their growth at risk because of a technology 'blind spot', new research has revealed.

The Lloyds Bank UK Business Digital Index showed that there is a positive correlation between digital maturity and SMEs’ confidence in their own enterprise, however almost a third of small firms believe being online is irrelevant for their business. 

Furthermore, only half of SMEs have a website and on the whole, those that do are only providing basic functionality, while a third of businesses are without basic online skills and don’t invest money in improving digital skills.

Lloyds Banking Group director for digital, marketing and customer development Miguel-Angel Rodriguez-Sola said: “Most businesses do use digital technology in some shape or form. However there is a real blind spot for many firms who are doing the basics but can’t see the benefits of doing more.

“Businesses that are willing to invest for the long term could reap huge rewards from digital technology. Some of the benefits are quick wins, but businesses that really do focus on making digital technology a priority may even find that they can capitalise more easily on growth opportunities and that their confidence continues to rise.”

However, the study showed over a third of SMEs felt they were already doing all they could to maintain and improve their digital presence. 

On the whole, the region with the most firms without basic online skills is the North West (38 per cent) followed by East Midlands (35 per cent), Yorkshire and Humberside (34 per cent).

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