Small businesses win big with the digital culture advantage
Our recent research with the Centre for Economics and Business Research (Cebr) revealed the transformative economic power of digital investment for businesses of all sizes, with significant opportunities for growth and productivity.
If all UK firms had maximized their use of digital technologies between 2021 and 2023, they could have contributed an extra £111 billion to the UK economy, with SMEs alone adding £61 billion.
That’s £5 billion more than larger firms.
Is your business a digital leader?
The research also uncovered the starkest contrast between digital leaders and followers comes from within the SME sector. Digital leaders - those actively embracing digital technologies - reported turnover increases five times greater than their less digitally savvy counterparts between 2021 and 2023.
This gap underscores the critical importance of digital adoption for business growth.
From my perspective, the message is clear: SMEs that invest in digital technologies are not just surviving, they are thriving. Whereas SMEs that lag in digital adoption have the most to lose, missing out on the substantial benefits that digital change can bring.
Economic potential of digital adoption
Making up 99% of businesses in the UK, SMEs have the potential to significantly boost employment and productivity through digital adoption.
We found increased tech adoption could have created 676,000 new jobs between 2021 and 2023, including over 313,000 new roles in small and medium-sized companies.
This potential economic impact is not just a statistic, it’s a call to action. SMEs are the backbone of our economy, and their success is crucial for national prosperity.
Our research clearly shows by embracing digital technologies, SMEs can unlock new levels of efficiency, innovation and competitiveness.
Building a strong digital culture
Businesses with a strong digital culture are more productive and grow faster than those without. They enjoy higher revenue, happier employees and more satisfied customers.
But a lack of confidence in effectively adopting digital technologies is hindering these outcomes.
Despite their crucial role, SMEs are less likely to report having a strong digital culture compared to bigger firms.
Only 59% of small digital followers report a strong digital culture, compared to 70% of medium-sized digital followers and 85% of large digital followers.
This disparity highlights the need for a concerted effort to build and nurture a strong digital culture within SMEs. It’s not just about adopting technology, it’s about embedding it into the fabric of your organisation.
The research findings make it clear: digital culture is not just a trend but a vital component for SME success. By embracing digital technologies, SMEs can unlock significant economic potential, create jobs and drive productivity.
Want more insights and detailed findings? Download our dedicated SME guide.
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