Lost Productivity Costs UK SMEs Over £1,200 Per Second
According to Sage’s second annual productivity tracker, UK SMEs have lost £1,268 per second in productivity this year, amounting to over 16 days so far. The report delves into the time spent on administrative tasks and the impact on efficiency in business.
Key Industry Figures Address Productivity Issues
At an event co-chaired by Ed Vaizey MP, industry leaders discussed the challenges affecting business efficiency. The UK has seen a £40 billion loss in economic value over the past year, with productivity decreasing by 0.9% compared to the previous year.
Sabby Gill, Sage MD for the UK and Ireland, highlighted the disparity in cloud technology usage for administrative tasks between small and large businesses. Only a third of small businesses use cloud technology, compared to half of large businesses, indicating a need for closing this gap to benefit all businesses.
Despite a 3.3% growth in the economy, productivity has only increased by less than 1%. Gill emphasized the potential impact of automating administrative tasks on overall productivity growth.
Identifying Productivity Challenges
Regulatory Burden: FSB research shows that small business owners struggle to keep up with tax regulations, spending an average of 178 hours per week on compliance. Sonali Parekh from FSB highlighted the administrative burden of regulations, which often outweigh the benefits for small businesses.
Finding the Right Tech: Vinous Ali from techUK emphasized the importance of understanding technology and its role in solving specific business problems to improve productivity.
Adopting Tech: CBI’s Jonathan Brenton noted the UK’s low ranking in tech adoption, particularly outside urban areas. Access to reliable broadband in rural communities could enhance productivity significantly.
Supporting Larger Businesses: Channel 4’s Gaynor Bailey shared the challenges of processing payments for freelancers, highlighting the need for effective tech solutions to streamline operations and improve efficiency.
Ed Vaizey MP stressed the role of technology in enhancing productivity and urged businesses to prioritize automation to focus on value-added tasks. He emphasized the importance of networking and learning from other businesses to drive innovation and efficiency.
Enhancing Productivity Through Technology
Embracing technology solutions and automation can lead to significant productivity gains for businesses. By optimizing processes and leveraging tech tools, SMEs can streamline operations and focus on strategic growth opportunities.
For more insights on boosting productivity and networking effectively, check out our article on Ten Ways to Get Better at Networking.