Sage
Leader in accounting, financial, HR and payroll technology
The crucial connection between digital adoption and the UK’s economic growth
As we gather for London Tech Week, it's important to recognise the important role that small and mid-sized businesses (SMBs) play in the UK economy. Representing a significant portion of employment and nearly half of private sector turnover, SMBs are undeniably vital to the UK’s economic health.
At Sage, our data shows us that despite recent market uncertainties, SMBs have shown resilience, demonstrating their potential to significantly contribute to the UK’s recovery and growth. However, realising this potential requires support, particularly in accessing new technologies, which many SMBs feel is out of their reach.
The UK’s competitive edge in the global market depends on keeping up with technological advancements. For smaller firms, digital innovation is crucial not just for survival, but for thriving in an ever-evolving marketplace, as well as effectively building and scaling their operations. This is essential not only for the businesses themselves but also for growing the overall UK economy.
To make this happen, a plan for a digitised economy is necessary, specifically designed to meet the needs of SMBs and remove friction. This plan should include incentives such as tax breaks or investments in digital standards, and regulations like e-invoicing that will automate processes that take so much valuable time away from entrepreneurs and business leaders.
Implementing such a plan would allow SMBs to effectively use digital tools and embrace technologies like artificial intelligence and big data analytics, transforming their business operations and increasing their ability to scale and make substantial contributions to economic growth.
Digital adoption can assist SMBs in creating new products and services, accessing new markets, and adapting to changing consumer demands. This flexibility is crucial in today's fast-paced economic environment, where consumer preferences and market conditions are always changing.
During London Tech Week, as tech leaders from around the world meet in the UK, it’s important to push for a practical digital plan that focuses on smaller firms. This plan should clearly list the steps needed to help these businesses start using digital tools effectively and provide ongoing support to make sure they succeed.
It’s also crucial for the government, industry, and tech providers to work together. This collaboration will help to create a supportive setting where small businesses can find the resources, tools and knowledge they need to upgrade their operations digitally. Programmes that offer digital training, tech hubs that are easy to access, and partnerships with tech companies, are key ways to support these businesses as they grow.
Linking digital adoption with SMB growth and scalability is essential for the UK economy. By helping SMBs to leverage digital technologies, we can ensure they continue to drive growth, innovation, and competitiveness.
For this reason, at London Tech Week, let’s focus on a digital strategy that truly supports small businesses. By doing so, we can help ensure a thriving future for the economy, making it more resilient and competitive globally. This is a golden opportunity to start important conversations and initiate actions that will lead to lasting economic benefits.
Author: Steve Hare, Chief Executive Officer, Sage
techUK and TechSkills at London Tech Week
techUK is proud to once again be a strategic partner of London Tech Week. The event is a fantastic showcase for UK tech, and we’re pleased that techUK members and colleagues are represented on the agenda.
We are pleased to be working with 20 techUK members at London Tech Week to highlight the positive impact of the tech industry in the UK.
You can find more details on the author of this blog, below:
London Tech Week: Fringe events
techUK is leading several fringe events across the week on topics as varied as Justice and Emergency Services, Local Public Services, Digital ID, and international trade. Visit the pages below to register:
