Third of UK Businesses Could Close by 2021 if They Don’t Adapt
Failure to keep up with new technology and digital demands is having a major impact on profits and growth of small firms
Small businesses across the UK need to adapt and keep up with tech advancements or risk having to close up shop; that’s according to Exact’s 2016 SME Barometer.
Polling 2,500 small and medium firms across Europe and the US, the study found that, in the UK, 38% of businesses believe if they don’t adapt their business models they will go out of business by 2021 – yet only 2% said they had put strategies in place to stop this from happening.
64% of all UK small business owners also said that they are facing competition from new digital players in their market, but again a mere 6% said they were investing in new tech in order to retain their market share.
Business owners identified key areas where they need to ‘keep up and adapt’, these included embracing cloud technologies (67%), and focusing on online sales (30%), partnerships and channel sales (26%), and hiring talent (27%).
65% of small business owners were of the view that technological changes will have a strong impact on the competitive landscape in the UK over the next three years.
Discussing the research, Gavin Fell, Exact Cloud Solutions UK general manager, said:
“Digitalisation is going to be key to ensuring you are not only efficient, but remain competitive in today’s highly challenging environment.”