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Peer2Peer Finance News | October 17, 2018

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Tech too costly for almost half of UK SMEs

Tech too costly for almost half of UK SMEs
Tim Evershed

THE UK’s small- and medium-sized enterprises (SME) could find their growth prospects hampered by an inability to adopt the latest technologies, according to new research.

The study conducted by the 2018 International Business Festival showed that 45 per cent of UK SMEs think upgrading technology is beyond their current spending power.

In addition, only 20 per cent of the businesses surveyed plan to invest in technology in the next three years.

“As this research shows, many UK SME leaders clearly understand the value of new technologies, but see them as expensive and out of reach,” said Max Steinberg, chair of the 2018 International Business Festival.

Read more: Small firms facing credit squeeze

“It’s absolutely crucial to business growth that SME bosses embrace these innovations and the opportunities they present.”

The survey of 500 SME leaders found the just 40 per cent of SME businesses plan to achieve business growth in the next three years by investing in technology.

Read more: Small businesses still suffering from late payments

This is despite 83 per cent of SME leaders recognising that their business must change to meet future market demands.

They also acknowledged that opportunities existed in areas like automation, artificial intelligence and big data.

However, 42 per cent of entrepreneurs worried that their companies would struggle to keep pace with the rapid advance of technology.

Read more: A quarter of UK SMEs planning to go for global growth