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Small firms let down by IT skills |
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| More than one in 10 small companies does not use email and almost one in five does not have a broadband connection, according to a poll by Lloyds TSB that exposes the gap between small firms with IT knowledge and those without |
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 Many small companies are failing to get the most out of technology and find it hard to keep pace with the latest developments in IT, a survey by Lloyds TSB and the Open University’s SERTeam claims.
Although the majority of companies have now embraced most aspects of modern technology, a quarter of firms (24%) claim they find it hard to keep pace with technological change while under half (47%) believe that technology has improved working life.
More worringly, three in 10 firms fail to use the internet as an information source, 19% have not yet got a broadband connection and 13% still do not use email, exposing an alarming gulf within the small business sector.
The poll also revealed that only 35% have used the internet to generate new business and just 28% think investing in IT has helped move into new markets.
"Small firms have tended to limit their technology use to communicate and organise information, but have been slower to wake up to the opportunities these tools might present for purchasing, production and distribution,” said Stephen Pegge, head of communications at Lloyds TSB Business.
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"If small businesses fail to invest for the future, they may not meet customers' expectations and could find they are soon overtaken by more efficient and more productive competitors,” he added. “It's part of our responsibility as a bank to help small firms make the best use of technology to maximise their potential." |
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| If small businesses fail to invest for the future, they may not meet customers' expectations and could find they are soon overtaken by more efficient and more productive competitors |
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But even though many small companies struggle to keep up with the latest developments in technology, the majority appreciate the potential it offers their company. The survey found that 61% of small businesses felt they would be unable to operate without their current investment in IT and almost one in two (47%) said using IT had cut costs elsewhere in the company. |
Half of those companies questioned had spent less than £5,000 on IT over the past year, with those in the business services sector likely to be the biggest spenders. Nearly a quarter (23%) spent over £20,000 compared to 17% of manufacturers and just 5% of retailers, the poll added. |
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Source: New Business Magazine |
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