Solving Britain’s Productivity Puzzle: The Role of Small Business Technology
Experts agree that solving Britain’s productivity puzzle is vital for the UK to compete against other stronger economies. One key factor in unlocking this puzzle is the use of small business technology, especially as we transition towards a screen-based attention economy.
Over the past decade, productivity in Britain has remained flat, partly due to low wages which have hindered the business case for technology investment. Recent figures from the Office for National Statistics show that British productivity has only improved by 0.5% per year since 2008, lagging 15% behind other G7 countries.
A survey sponsored by Dell Small Business found that nearly two-thirds of small business owners are concerned about their company’s lack of productivity. Lesley Giles, director of thinktank The Work Foundation, highlights the issue of high employment levels with a mix of high-value and low-value roles contributing to the UK’s productivity problem.
The discussion around extending the living wage and the impact of Brexit on low-cost labor supply further emphasizes the need for automation and digitalization in small businesses to enhance productivity.
Embracing Technological Innovation
Technological innovation plays a crucial role in driving productivity in businesses. A survey by Yorkshire Bank revealed that high-growth businesses are more likely to be tech-driven, with 71% citing technology as a key driver for growth.
Richard Blakesley, co-founder of tech fund Capital Pilot, emphasizes that productivity is linked to creating value through technological innovation rather than focusing solely on manufacturing efficiency. As Britain transitions into an attention economy, where businesses thrive on capturing online attention, the importance of technology in enhancing productivity becomes even more evident.
The Role of Technology in Driving Productivity
Employees in small businesses are receptive to utilizing new technology to boost productivity. A study by Dell and Intel found that a quarter of employees globally would consider changing roles for better technology that enhances productivity.
Outdated IT systems and technology hamper productivity in small businesses, with 17% attributing growth challenges to obsolete technology. Megan Wright, small business technology advisor at Dell, stresses the importance of up-to-date technology in maintaining business continuity and efficiency.
Overcoming Technology Resistance
While employees are willing to embrace new technology, some business owners may exhibit resistance to adopting technological advancements. The UK lags behind in technology adoption for business processes compared to other European countries, with small businesses showing lower levels of technology adoption.
The Federation of Small Businesses (FSB) reports that a significant number of small businesses have yet to leverage digital technology tools such as cloud accounting and CRM packages. Business owners need to update their digital skills and gain confidence in employing new technology to drive innovation and competitiveness.
With advancements in technology making it more affordable and accessible, staying up to date with IT hardware and software is crucial for small businesses to thrive in the evolving digital landscape.
As the UK economy shifts towards a screen-based model, businesses must invest in up-to-date technology to remain competitive, whether selling physical goods online or digital subscriptions to services.
Dell Small Business is dedicated to enhancing business productivity through technology. Speak to a Dell Small Business Advisor for tips on boosting your business productivity at Dell.co.uk/smallbusinessadvisor.