What’s more important for your small business? Is it your people or the technology you invest in? As the business sector transitions into a totally digital world, some entrepreneurs and small business owners are focusing more on tech than people.
New research from Yorkshire Bank’s Expect More report, shows that nearly half of UK SME owners believe technology is more important to their business than people.
Why is technology important to small businesses?
Expect More covers 2,000 small business owners, SME entrepreneurs and start-up owners from ten major UK cities.
More than 46% of small business owners say they think tech is more important to their business than people, with the highest number in London (56%). And it seems these tech-loving SME owners may be on the right track.
Successful, high-growth businesses are more likely to be driven by technology. The report shows that almost three-quarters of entrepreneurs find tech is the key reason for business growth. Interestingly, these high-growth businesses driven by tech are more aware of the environmental impact of their work. Almost 60% say their environmental impact is extremely important, compared with an average 44%.
The link between technology and funding
Tech also secures more funding for SMEs. More than 35% of small businesses led by technology find it relatively easy to land growth funding. This is significant when compared with those outside of the tech field, with just 19% of other businesses reporting the same.
This is partly due to the fact that tech-led SMEs are making more attempts to secure more funding than businesses in other sectors. The study finds that 90% tech orientated businesses attempted to access funding, compared to an average of 80%. Whether this is because there are more opportunities available, or whether tech businesses are being more proactive remains unclear.
James Turner, Managing Director of Turner Little Limited, says: “Technology is the biggest disruptor to our daily lives and to businesses across every sector. Advances in tech are revolutionising the way we live and work. This is opening up new markets to UK SMEs.
“E-commerce has allowed access to a sector that wasn’t previously available to small businesses, and many start-ups are tech driven for this reason. There are opportunities for tech-based start-ups that simply don’t exist for more traditional small businesses, particularly as the face of retail is changing so much. As e-commerce and traditional retail continue to adapt to each other, UK SMEs are taking advantage of this new channel of opportunity.
“It’s unsurprising, therefore, that tech-based small businesses are securing more funding and reporting higher growth levels. The SME sector has adopted a massive range of tech, ranging from social media and digital marketing to automation and artificial intelligence (AI). The introduction of 5G will continue to push tech boundaries and open up more connections, fuelling development in this area.
“However, people remain vital to the success of small businesses, and this shouldn’t be forgotten in the drive to adopt new technology. The personal element is the differentiator between businesses and can be the difference between success and failure. The importance of effective communication between business and client or customer should not be taken for granted. UK SMEs must strike a balance between people and technology as their focus.”
About Turner Little
Founded in 1998 in Yorkshire, UK, Turner Little is a specialist UK and offshore company formation, banking and corporate services provider. Our services include company formation, UK and offshore banking, asset protection, credit correction, trademarking and trusts. Other services include Internet services, mail forwarding, wills and probate. Turner Little’s vision is to offer the best possible service, together with market leading products.