Small business technology stress
Technology can boost efficiency and productivity, but it can cause stress too.
In the UK, there are more than 5.5 million small- and medium-sized enterprises (SMEs), and they play a vital role in the health of the economy. Every day, SMEs across Britain rely on technology to keep their businesses running and use it as a platform for success. It could be as simple as Wi-Fi to connect employee and guests’ devices, accounting software or industry-essential tech. Yet if this technology goes wrong, it can cause significant stress for business owners and employees. To highlight the importance of technology for UK SMEs, we surveyed 250 business owners across a range of industries and sectors. We asked how effective their technology is, the issues they face and the impact this can have on their day-to-day. As well as the stress this can cause. Just shy of three quarters (74%) of SMEs rely on Wi-Fi to run their businesses every single day. So, it’s no surprise the top issue faced by business owners is Wi-Fi connectivity issues. One third of UK SMEs (33%) have experienced Wi-Fi problems in the last year. It is most keenly felt by businesses in the following sectors: Travel and transport (75%) Arts and culture (38%) Issues with Wi-Fi connectivity can mean disruption to video calls, difficulty finding key information when dealing with customers and the slow spinning circle of doom when you’re waiting for a page or information to load. SMEs of all sizes and across all sectors rely on technology that needs Wi-Fi to work, including: Accounting software: Used by 63% of British small businesses Cloud-based storage: 48% of UK SMEs rely on this
Wi-Fi connectivity is top of the stress list
Video conferencing: 48% of British small businesses
Card readers and payment tools: 44% of UK SMEs
If Wi-Fi drops out, it means payments can’t be taken which can cause significant stress for in-person businesses at the point of sale. If cloud-based storage is hindered due to the Wi-Fi being down, it means important files may end up being stored on employees’ desktops then forgotten about. And accounting software losing connectivity can cause problems when crunching the numbers and generating financial reports.
Fees to upgrade and high technology costs put many businesses at a disadvantage
From our research, we can see that 25% of SME owners struggled with high costs when upgrading or replacing outdated technology in the last year. By not having the latest systems and relying on legacy technology, service levels can potentially drop and inefficiencies can grow. Put simply, it can put businesses at a competitive disadvantage.
This high cost is most felt in the healthcare industry, with 50% of businesses facing budget issues with upgrading or replacing tech. This is causing significant problems. The budget might not be there for the upgrades, yet issues with old tech are causing even more financial pressures – to the tune of up to £1999 per year.
Effective and secure technology is vital in the healthcare sector, where cyber security and data breaches can be catastrophic.
SMEs are struggling to keep up to date with the latest technology trends
The high costs of upgrading technology also impacts the ability to keep up with the latest technology trends.
Our research tells us that 22% of all SMEs feel their business isn’t keeping up with the technology curve in their industry. That’s one in five British SMEs feeling they’re lagging behind the competition.
This increases when we deep dive into industries, specifically:
Arts and culture (38%)
Architecture (37%)
Retail (29%)
Manufacturing and utilities (27%)
With technology paving the way for efficiencies in all these sectors – most notably manufacturing and utilities – it’s worrying that so many businesses feel they’re at a competitive disadvantage.
Technical glitches and failures are disrupting business operations
Technology creates the foundation for so many of our businesses to thrive. But such reliance on tech brings potential pitfalls when glitches or system failures occur.
Whilst none are more high profile than the Post Office Horizon scandal, this can be extremely problematic for SMEs too. Our research shows that 23% of UK SMEs experienced technical glitches or system failures in the last 12 months that have disrupted business operations.
This has been felt most across:
IT & telecoms (36%)
Finance (31%)
Two industries where data efficiency and accuracy is essential.
It’s no surprise that these technical issues have impacted the bottom lines of many organisations across the country. On average, technology glitches and failures cost SMEs over £3,100 a year.
Cybersecurity threats continue to be a problem
Technology issues can be further exacerbated by the threat of cybersecurity. In the UK, 17% of SMEs have experienced cybersecurity problems in the last year. These include malware, phishing, scams and data breaches.
In the IT & telecoms industry, this is as high as 41%.
Worryingly, just over half of UK SMEs (58%) aren’t using any form of cybersecurity software such as antivirus programmes or firewalls. And one in four (25%) have little to no confidence in their ability to prevent or respond to a cyber threat or data breach.
Now is the time to invest in technology
Whether improved Wi-Fi, industry-specific tools or cybersecurity software, UK SMEs must invest in technology to protect the future of their businesses.
From our research, we see that this is an annual priority for the majority of SMEs, with 35% investing in core business technology once a year. Just 7% do so every month, with 15% investing in new technology every six to 11 months.
Expert advice for SMEs facing technology issues
Paul Ducklin, Senior Product Manager at TalkTalk Business, offers expert advice for SMEs facing technology issues:
Speed and connectivity issues: "Correct positioning of your router is crucial. If it’s tucked away on a shelf, with objects in the way, this impacts performance and devices will struggle to connect. Make sure it’s located centrally and away from obstacles.
“If your tech’s set up in the right way and you’re having issues, then it could pay to assess your infrastructure and usage. If you’re overburdening your internet connection, it might be time to explore an upgrade. Making the step up to a futureproof full fibre connection or a dedicated leased line will not only improve performance today – it will set you up for success tomorrow too.”
Cybersecurity tips: "Cybercriminal techniques are getting more sophisticated and cyberattacks more common, so SMEs have to be vigilant. Robust password policies and multi-factor authentication are essential and will protect your sensitive data. And ensuring you have the latest software and firmware updates will safeguard against the latest cyber threats.
“It’s also important that your people are aware of the risk of phishing scams and vulnerabilities that depend on human error, so educate your employees to reduce this risk.”
Keeping up with tech trends: "The tech landscape doesn’t stand still for long – SMEs have to keep up to stay competitive. There’s no shortage of free resources available. Follow key publications in your industry, attend webinars and engage with peers and tech experts via online forums and networking events. Tech providers will often share insights into emerging trends, so consider signing up to newsletters and other communications they offer.”
Consider AI: “AI seems to be a bit of a buzzword right now, and it can generate quite polarised views. Some feel threatened by it while others think it’s a complete gamechanger.
“Whatever your view today, AI is here now and nothing’s going to change that. Personally, I like to view it as an enabler to empowering us humans to simplify and speed up onerous tasks, allowing us to be more productive.
“I would encourage every business to at least consider where AI can be used to automate, accelerate, enhance or perhaps even eliminate some of the more laborious activities they face every day.”
Leverage people power: “Technology is only as good as the people that use it, so to make most of its potential, SMEs must embed a tech culture in their business. Ensure that you and your people set aside the time to do research to keep up with the latest trends and use tech to your advantage.
“Keeping an active and open mind towards tech innovation could reap huge benefits for your business, helping you optimise processes and identify new growth opportunities. Building a culture of innovation, experimentation and continuous learning is essential for today’s SMEs.”
Technology is essential for many SMEs to survive. The right technology can give organisations a competitive advantage, enhance efficiencies and boost productivity. But for all the benefits it brings, technology can come with its own set of challenges. When it comes to getting the most out of technology, it’s down to SMEs to make the right decisions, invest in the right systems and software and focus on the right areas of their business.
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At TalkTalk Business, our mission is to help UK businesses meet and exceed their ambitions. We've supported businesses of every shape and size for over 25 years, providing a broad range of affordable connectivity solutions that are backed by exceptional service.
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