Small businesses have a big opportunity when it comes to using technology to leapfrog their bigger but slower-moving rivals.
When asked about their spending intentions, UK SMEs are three times more likely than major enterprises (49% versus 18%) to increase technology investment, according to research from recruitment company Nash Squared.
BEV White, chief executive at Nash Squared, says small business owners and managers who are alert to the opportunities that digital transformation affords can now exert a much greater influence in markets than ever before.
"In a world that is so interconnected, the playing field is much more level between smaller and larger companies. Both can reach a global audience of customers, employees or potential new hires", she says.
SMB Group, an analyst firm that looks at tech trends for small businesses, also reports high enthusiasm for IT investment. More than half (54%) of small firms say they intend to increase tech spending.
The analyst says small firms with a digital transformation strategy in place and initiatives underway are three times more likely to have enjoyed an uptick in revenues from 2020 than those with no plans.
Many small firms, therefore, are already seeing positive results from digitization. These SMBs are using core technologies such as the cloud to pivot and capitalize on new opportunities – and that's crucial in today's fast-changing global economy, says White.
"The big advantage that smaller companies have is agility; the ability to change and adapt. And in a world where disruption of every kind seems to be coming at us at breakneck speed, the value of agility can never be underestimated.
"Evidence suggests many small business owners do feel their inherent agility gives them an advantage. Twice as many SMEs (23%) as larger corporates (10%) are extremely or very effective at scaling good ideas and stopping poor ideas quickly, reports Nash Squared.
So, what is McCabe's big lesson for people who are running small businesses and looking to take advantage of digital technology? The answer is simple: focus on core challenges first before even thinking about potential digital solutions.
"What are the things that you really need to do well, that you need insights into, and that you need to go smoothly," she says. "Then really focus on using technology to support those areas in your company."
Whether it's dealing with customer inquiries, improving supply chain processes or boosting their e-commerce presence, small businesses with limited resources and multiple challenges are never going to be able to do everything at once.
Take one target – such as using cloud and automation to reduce a reliance on spreadsheets and paper-based processes – and make it happen.
"Really focus on what you have to do well – technology can help you do those things better, so that you do them quicker. If you're automating, more people can spend less time on low-value stuff. They can spend more time doing what they need to do to help you grow," she says.
"And the other big benefit is that, when you automate, you'll get the information and the reporting that's going to let you evaluate how the business is doing, and you can do the course corrections effectively."
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