SMEs: Big Talk About Tech, Small Investment—Research Shows
New findings from CitySprint’s Collaborate UK survey reveal a startling gap: most small‑and‑medium‑enterprises (SMEs) rave about the importance of tech, but only a handful actually put it into action.
The Big Tech Talk‑Gap
- 79% of SMEs say that investing in new technology is essential for future success.
- Yet one in ten feel they haven’t spent a single penny on any tech upgrades over the past year.
- Only 56% allocated 11–30% of their budgets to tech, while a quarter spent less than 10%.
Picture this: you’d walk onto a fancy stage, shout “Innovation is my middle name!” and then ask your accountant if you have the cash to actually lay down the tech. That’s the reality for many.
Budget Woes and Security Fears
Barriers are piling up like stacks of unread invoices, and the most common ones are:
- Budget constraints – 38% of respondents cite lack of funds.
- Security concerns – 26% worry about data breaches.
- Training headaches – 24% fear staff will need a crash course.
It’s like opening the door to the future and then realizing you can’t afford the doorbell.
Support Needed: Grants, Knowledge, Collaboration
When asked what would push them forward, the answer was simple:
- Government help – over a third (34%) would invest more if they had support or bursaries.
- More tailored information – a quarter (27%) want clear guidance on what works for their niche.
- Co‑operation – 18% feel they’d thrive if they could partner with similar‑sized firms.
Patrick Gallagher, CitySprint Group CEO, summed it up nicely:
“Innovation drives growth, but the cost and effort are real barriers. Small businesses need support to keep up with tech that can give them the edge.”
The Bottom Line: Innovation or Risk
Why does it matter? According to the CBI, boosting SME technology adoption could add £100bn to the UK economy and trim income inequality by 5%. So, a few more splashes of funding could be a game‑changer.
And the data on why they use tech is telling:
- Improving IT infrastructure – 40%
- Cutting costs via automation – 31%
- Strengthening cyber‑security – 28%
Yet only 17% are currently dabbling in AI or machine learning, and just 23% plan to adopt it soon. In a world where AI is already sending memes, that’s a missed opportunity.
Brexit remains top worry for a third (30%) of SMEs, but the confidence levels are steady, with 77% feeling as secure as last year and 89% in good financial shape.
Takeaway
Small business owners, it’s time to grab those grants, seek out expertise, and maybe team up with peers. A lack of tech could dent the UK’s reputation as a hotbed of innovation. Let’s get those investments rolling—before someone else zips past you on the tech highway.
