Why boosting productivity means innovating small business technology

Solving Britain’s Productivity Puzzle: The Role of Small Business Technology

Experts agree that solving Britain’s productivity puzzle is crucial for the UK to stay competitive against stronger economies. Small business technology holds the key to unlocking this puzzle, especially as we transition towards a screen-based attention economy.

Over the past decade, Britain’s productivity has remained stagnant, partly due to low wages which have hindered the business case for technology investment. Recent data from the Office for National Statistics shows that British productivity has only improved by 0.5% annually since 2008, lagging 15% behind other G7 countries.

A survey sponsored by Dell Small Business revealed that nearly two-thirds of small business owners are losing sleep over their company’s lack of productivity. Lesley Giles, director of think tank The Work Foundation, points out that the UK’s productivity challenge stems from a high level of employment divided between high-value and low-value roles.

With discussions around extending the living wage and the uncertainty of Brexit impacting low-cost labor supply, the case for automation and digitalization becomes more compelling. Richard Blakesley, co-founder of tech fund Capital Pilot, highlights that competing against other manufacturing nations in traditional production efficiency is a race the UK cannot win.

Embracing Technological Innovation

Technological innovation is seen as a key driver of productivity growth in businesses. A survey by Yorkshire Bank revealed that high-growth businesses are more likely to be tech-driven, with 71% recognizing technology as a growth catalyst.

Richard Blakesley emphasizes that productivity enhancement is not about traditional manufacturing efficiency but about creating value through technological innovation. As Britain transitions into an attention economy, where businesses monetize by capturing online attention, the role of technology becomes even more critical.

Addressing Productivity Challenges

Employees in small businesses are receptive to new technology, with studies showing that better technology can enhance productivity. However, outdated IT systems continue to hinder efficiency, with 17% of small businesses attributing growth challenges to obsolete technology.

Megan Wright, small business technology advisor at Dell, stresses the importance of up-to-date technology for business continuity and productivity. She warns that any disruption caused by outdated systems can significantly impact a company’s operations.

Overcoming Technology Resistance

Despite the potential benefits, some small business owners remain hesitant to adopt new technology. Research indicates that the UK lags behind other European countries in technology adoption for business processes.

Dana Elman Vishkin from the FSB emphasizes the need for SMEs to embrace cloud technology and digital tools for business growth. She notes that some business owners lack the confidence and skills to leverage digital technology effectively.

Lesley Giles underscores the importance of CEOs updating their skills and embracing digital innovation for business survival. With advancements in IT hardware and software-as-a-service making technology more affordable, staying current with technology is becoming increasingly feasible for small businesses.

As the UK economy shifts towards a screen-based model, having up-to-date IT infrastructure is essential for businesses to remain competitive. Dell Small Business offers tailored solutions to help SMEs enhance their productivity through technology. For expert advice on boosting business productivity, consult a Dell Small Business Advisor at Dell.co.uk/smallbusinessadvisor.