09 Sep 2024

techUK Report - Small Enterprises, Big Impact

techUK is excited to announce its latest report, Small Enterprises, Big Impact.

techUK has today unveiled a report highlighting the immense potential for growth and productivity through better digital adoption support for UK SMEs. We call on the UK Government to act now and follow our 12 month roadmap for SMEs digitisation. This will help in the ambition to become the fastest growing economy in the G7. 

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Small Enterprises, Big Impact is structured as both a review and reflection on previous and ongoing policy interventions, including Help to Grow: Digital and Making Tax Digital, and outlines a range of policy actions that the Government can enact within the next 12 months.

The policy actions are informed by industry. They aim to tackle key challenges faced by SMEs, including access to finance and skills, and take steer from international examples of best practice.

 

Key recommendations 

We provide a 12-month roadmap for the Government to incentivise SME digital adoption. Key areas of focus include:  

  • Co-ordinating a cross-departmental and industry led Forum and appoint a Minister responsible for digitisation across the economy. 
  • Delivering a comprehensive digital adoption plan with clearly defined targets by 2030, focusing on the right underpinning infrastructure, regulation and skills needed to succeed.
  • Committing to digital adoption growth opportunities, including supporting the next stages of Open Banking’s evolution and SMEs carbon reporting for net zero.
  • Expanding the Made Smarter Adoption programme to all sectors of the economy. 

With the UK being ranked fourth on the Global Innovation Index 2023, we now stand at a pivotal moment ahead of the upcoming Budget and Global Investment Summit. By prioritising digital adoption for SMEs, the UK can harness its existing strengths to drive future growth, innovation, and sustainability. The potential impact is significant: enhanced digital adoption could add an impressive £232 billion to the UK economy, while also preparing businesses to thrive in an AI-driven future. 

Artificial Intelligence (AI) is projected to boost UK GDP and bring huge benefits for UK businesses. AI is not only a tool exclusive to or digitally intensive businesses, but an enabler of productivity and competitiveness for all businesses. However, it will first be deployed through updates to currently in use business software, meaning that if UK businesses are behind on basic digital adoption, they will soon be behind on AI adoption as well. Enhancing SME digitisation support is crucial for securing our international competitiveness and fully capitalising on the economic opportunities that AI offers. 

Digital adoption is not just a growth opportunity - it's essential for the UK to stay competitive on the global stage. By equipping UK SMEs with the tools they need to thrive in a digital economy, we can unlock significant productivity gains and ensure long-term economic resilience. We look forward to working with the government and relevant stakeholders to leverage this growth opportunity and reap the benefits that AI and emerging technologies can bring to all businesses, including SMEs.

Neil Ross

Associate Director - Policy, techUK

Alongside this, the UK still suffers of a productivity gap. Despite SMEs making up 99.9% of UK companies and representing some of the country’s most resilient businesses, over a quarter of UK SMEs still do not use basic digital tools. SMEs face some common challenges to digitisation that must be addressed. These include costs and a lack of skills to help businesses through the adoption stage of new technologies.

In light of the previous Government’s shortcomings with initiatives like Help to Grow: Digital, techUK reiterate that this Government can seize the opportunity to elevate the UK’s position in the global digital landscape. Digitisation of SMEs will also lead to growth opportunities in other areas, including Open Finance and net zero. These are vital priorities that, if taken advantage of, will ensure the UK is on a secure footing for future growth and competitiveness. 

techUK look forward to working with the Government to deliver on economic growth, placing digital adoption at the hearts of this.

You can also download our full report here.


 For any questions, or to discuss this further, reach out to the digital economy team:

Neil Ross

Neil Ross

Associate Director, Policy, techUK

Samiah Anderson

Samiah Anderson

Head of Digital Economy, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK


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techUK helps our members understand, engage and influence the development of digital and tech policy in the UK and beyond. We support our members to understand some of the most complex and thorny policy questions that confront our sector. Visit the programme page here.

 

 

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Meet the team 

Antony Walker

Antony Walker

Deputy CEO, techUK

Neil Ross

Neil Ross

Associate Director, Policy, techUK

Alice Campbell

Alice Campbell

Head of Public Affairs, techUK

Edward Emerson

Edward Emerson

Head of Digital Regulation, techUK

Samiah Anderson

Samiah Anderson

Head of Digital Economy, techUK

Audre Verseckaite

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Archie Breare

Archie Breare

Public Affairs Manager, techUK

Oliver Alderson

Oliver Alderson

Policy and Public Affairs - Team Assistant, techUK

 

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