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Could UK technology take off in 2013?

It’s Technology Week on Bdaily. Here, Richard Coleman, director of SME at Zurich Insurance, shares his thoughts on the current UK technology sector landscape.

The UK technology sector is an incredibly exciting part of British business at present, housing many small businesses who are experimenting and developing the tools vital to our digital economy - an economy that is the fastest growing in the G20 according to the Boston Consulting Group. However, the latest SME Risk Index from Zurich shows it is clear that small technology businesses have a mixed view of the year ahead.

In terms of opportunities, it is refreshing to hear that well over a quarter (29%) of tech SMEs view the expansion of their business in the UK as top opportunity for the year ahead. This is followed closely by the adoption of new technologies such as mobile, cloud applications and machine to machine technology (the connection of physical items to the internet and each other. Also known as the ‘internet of things’), all of which will be a vital part of staying ahead of competitors. Similarly, the top priority for tech SMEs is to sustain key business relationships and contracts.

While there is much positivity in the UK technology sector there are also some major concerns. At a macro level 67% do not believe that the economic situation will improve in the next year, with three quarters concerned about future revenue streams and 72% already worried about their profit margin. A majority also believe that they face more risk compared to this time last year (57%), particularly with regards to data loss and cyber attack which are also cited as the top unforeseen business threats causing the most concern. As the risk landscape is becoming increasingly complex and evolving at such speed, tech SMEs need to give serious consideration to how they manage these challenges and where they seek independent advice and guidance. Failure to do so could have devastating consequences - from regulatory fines, to legal battles and ultimately a loss of business. In light of these pressures, almost one quarter (24%) of tech SMEs view themselves at high risk of going out of business in the next year - a number it would be fantastic to reduce in 2013.

With increased focus on the UK technology sector at present, including large scale investment in ‘tech hubs’ such as TechCity in London, it’s important that the UK’s tech SMEs remain optimistic, but at the same time manage the risks that come with increased growth and stand in the way of expansion. The UK has a long history of tech success, but if we are to compete with international counterparts then UK technology SMEs must continue to have the foundations to flourish, while also having access to the right business advice in order to minimise risks. It won’t be easy, but 2013 could well be the year that the UK technology sector really stands tall.

Check out some of the technology week articles, including: Bdaily talks IT technology; the UK tech sector: a health check; and the web-developers perspective; Bdaily talks to Care.com; the growth of the UK tech sector; and flying ahead in the technology sector.

This was posted in Bdaily's Members' News section by Zurich Insurance .