Scotland’s smaller firms have a significant desire to adopt new technology, but many see time, money and a lack of understanding of the tech landscape as key barriers.
In a survey commissioned by Virgin Money, 79% of small and medium-sized enterprises (SMEs) in Scotland said they were likely to adopt new technology in the next five years to support business performance and growth.
A similar number (82%) believe technology can enhance success, and nearly three-quarters (71%) are planning to upskill their workforce to adapt to digital technology.
Common barriers
However, despite the survey results showing a robust appetite for leveraging technology for business growth, feedback suggests there are common barriers among SME decision makers holding back their progress in this area.
A majority of respondents (38%) cited lack of funding as the main factor preventing them from using advanced technology.
A further 29% said it was a lack of time to implement and 21% admitted to not understanding what technology can do.
A quarter (25%) said advanced technology was not relevant to their business.
The survey of small business decision-makers coincided with a futures report, also commissioned by Virgin Money, predicting advances in technology in the coming decades are likely to transform SMEs.
Graeme Sands, head of business products and lending at Virgin Money, said: “Technology will continue to accelerate rapidly, enhancing the way businesses operate.
“But many SMEs are concerned they could be left behind due to significant organisational barriers.
“Lack of time and money are age-old challenges for SMEs, and many also struggle to understand what tech is right for them.”
Scotland’s small businesses need additional support and assistance to bridge the gap and ensure they keep up with digital transformation.”
Graeme Sands, Virgin Money.
Mr Sands added: “There is a clear gap between what SMEs want to do with technology and what they have the means to do.
“Scotland’s small businesses need additional support and assistance to bridge the gap and ensure they keep up with digital transformation.”
Dave Coplin, one of the UK’s most prominent futurologists, said: “Today’s technology is enabling us to do things we couldn’t have imagined and certainly didn’t predict 30 years ago.
“The next few decades are going to see technology undergo similarly spectacular leaps.
“SME leaders should focus on building their capacity now to adapt their business in response to the changes coming down the line.”
Conversation