Most businesses are actually small businesses. In France, SMEs represent 99.8% of structures. In the US and UK it’s 99.9%. In total, this means that around half of the employees worldwide work for an organization of less than 250 people.
But beyond these figures hides a great diversity: from the family business established for years and resistant to change, to the start-up which has just launched and which has a one in five chance of failing during its first year, there is a world when it comes to technology. Among these millions of companies, some are obsessed with acquiring the latest technologies, while others will adopt them slowly and reluctantly.
What is nevertheless clear is that the past two years have given a prominent place to technology, which has become an unexpected priority for a growing number of SMEs.
A change initiated by the pandemic
Many of them have been forced to rethink their working methods, as telework has quickly become a top priority. Others have had to rethink their routes to market, for example by increasing their use of e-commerce. Still others have had to rethink their supply chains as the global economic turmoil continues.
It’s no surprise, then, that a recent study by Verizon found that more than two-thirds of companies see technology as a key ally in helping them meet many challenges: improving sales, acquiring new talent, fighting against inflation and supply chain issues, etc.
A similar proportion say revenue generated from digital operations is higher today than before the pandemic.
SMEs able to compete with large companies
Companies that have seen the impact of technology on their business (for example, some cite a 50% increase in e-commerce) are unlikely to return to their old ways of working. Because even if they wanted to, their staff and their customers have evolved.
Among technology trends, small and medium-sized businesses are increasingly using cloud computing. This is what allows them more and more to be able to compete with the biggest structures. Indeed, sophisticated enterprise systems that were previously only accessible to companies willing to spend months and years implementing them (and who could afford the huge upfront cost and teams of engineers for permanent maintenance) are now accessible to the smallest start-up in the form of SaaS (Software-as-a-Service). These innovations are in turn driving demand for other technologies, such as the use of digital marketing to drive sales.
Meeting today’s organizational challenges
But it’s not just about maximizing revenue; cloud-based technologies, in particular, can help small businesses address organizational challenges by supporting the shift to hybrid working.
Cloud computing also allows SMEs to be more flexible in terms of where and when their staff work, making it easier to recruit – a key issue these days.
For large enterprises, technology has long been a way to make systems and processes less cumbersome and burdensome; small businesses can also benefit, perhaps even more.
Be aware of the risks
Of course, technology comes with risks. SMBs often don’t have the skills and budget to protect themselves as well as large corporations, and it’s precisely for this reason that cybercriminals target SMBs.
But even without a huge dedicated team, knowing the basics of cybersecurity and implementing them is often enough to fend off cyberattacks – at least the less sophisticated ones.
Technology, hitherto reserved for large organizations, is in fact becoming a priority for small and medium-sized businesses.
Source: ZDNet.com