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SMEs with growth plans embrace technology

Ambitious SMEs with plans to expand are the most likely to embrace new technology, according to new research from the Institute of Chartered Accountants in England and Wales (ICAEW).

Findings from 532 UK businesses showed that almost 80% of SMEs believe technology plays a key part in growth plans, while the top 10% of ambitious companies were twice as likely to recognise the role technology has for expansion than those happy to stay the same size.

The study, commissioned by TalkTalk Business, categorised SMEs into groups according to their plans for growth.

52% of respondents were classified as ‘Strivers’, or those who plan to grow, while just 5% were labelled ‘Despondents’, or those who believe they will downsize in the near future.

Author of the report and editor of ICAEW’s magazine, economia, Richard Cree said: “There is no doubt that the application of technology is increasingly important to all businesses, regardless of sector and irrespective of their ambitions for growth.

“However, when it comes to how technology affects growth, respondents were clear that its key role was to deliver value by driving efficiencies and savings.”

The ‘Geared for Growth’ report found that 1 in 10 businesses in the UK prioritise growth in 2013 as their most important goal, despite challenges presented by the economy.

Contributing factors, such as people management and training, were also explored to find 22% of businesses are affected by the skills gap.

Meanwhile, 49% said skills held by their management team are essential to the business’ success or failure.

Charles Bligh, managing director of TalkTalk Business, commented: “In a fast-moving digital economy, the companies most likely to succeed and grow are those with technically-skilled staff.

“Business can also help themselves to move from good to great by giving greater priority to IT training where needed and realising best value from their existing teams.

“Technology plays a pivotal role, with 80% of respondents saying it was important or very important to help drive value through efficiencies and savings.

“British SMEs are clear that they need access to affordable technology to help control costs. The two thirds of SMES that are still ‘offline’ need to urgently consider the huge opportunities they could be missing, potentially valued at £18.8bn per year.”

This was posted in Bdaily's Members' News section by Miranda Dobson .