Fastest growing businesses more likely to be tech driven
The top 20% highest growth business are more likely to consider themselves as tech-driven, with 71% finding technology to be a key driver for their growth, according to research by Yorkshire Bank.
The research, which studied the attitudes and opinions of 2,000 SMEs, found that as a further sign of their forward-thinking mentality, high-growth businesses are more likely to actively review their impact on the environment.
The research also hints that technology may be the winning factor for SMEs when trying to secure funding, with 36% of tech-led businesses finding it easy to access funding for growth – only 19% of the rest of the businesses feel the same.
“Technology is disrupting many different aspects of our lives, and it is truly revolutionising the way we work. The rise of e-commerce in particular is enabling SMEs to access markets they may never have been able to reach previously. It therefore doesn’t surprise me that high-growth businesses are more likely to be driven by tech,” said Gavin Opperman, group banking business director of CYBG.
“We’ve seen a huge adoption in the SME world of many technologies from digital marketing and social media to AI and the IoT. 5G is set to push boundaries and assist a wide range of interconnected devices, which will include everything from company cars to the office environment,” he added.
The study also found that 46% of small business owners believe technology is now more important to their business than people. However, while Opperman was sure of the benefits of new technology, he was quick to highlight the value of people too.
“We shouldn’t forget the importance of people in a digital economy. It is the personal element that helps to build a rapport, creating the long-standing relationships necessary for a trusting and efficient connection between business and customer,” Opperman said.
“It is clear that technology can open so many doors and help businesses take that extra step in their growth plans and it is great to see so many UK SMEs embracing this,” he added.
Angela McClelland, Co-Founder of The Extraordinary Club said: “Technology of course helps with digital skills, productivity and processes within the workplace, but I don’t think we should lose focus on the importance and power that people have. People and tech need to be complementary.”