Small entrepreneurs often go into crisis when they have to face decisions regarding the purchase or in any case the implementation of new technologies, which is why very often they react by closing in a hedgehog in a conservative attitude that in the long run can become counterproductive for the good of their activities.
According to research commissioned by Kabbage Inc., a company born in 2008 that provides online financing to small businesses and consumers through an automated lending platform based on a proprietary algorithm, only a third of entrepreneurs interviewed believe technological innovation essential for the growth of its business. Two-thirds define themselves as traditionalists and late adopters. This definition indicates who gives in with certain reluctance to a trend only after it has become mainstream and because, substantially, it cannot do without it.
An example of late adopter is who, despite having an articulated business activity, waited on January 2, 2019, to acquire management software and until the day before he still wrote handbills … losing hours and hours, or who until the latter tried to do without a cell phone, and that still today does not give up its credit Nokia 3310 snubbing smartphones and tablets.
However, it is a fact that companies that prove more enterprising in terms of technological innovation tend to grow faster. Companies that choose to invest in digital by raising their level of digitalization (e-commerce, management software, process automation …) have significant advantages, including:
- They produce x2 of revenues per employee;
- They achieve x4 times higher profit growth than the previous year;
- They create jobs x3 times more than the previous year;
- They have an average growth in hiring x6 times higher;
- They export x3 times more than the previous year.
However, the same research reveals that despite all these potential benefits, 80% of small business owners do not have digital data analysis tools or other online tools, which means that out of a sample of over 2000 companies interviewed, the most have not yet realized their digital potential.
However, here are three statistical data that you really can’t afford to ignore.
Digitally advanced SMEs earn more and create more jobs.
Knowing how to use and exploit technology helps the company to grow and operate more efficiently. This is the mental attitude that Greg Mills showed when he acquired the Berbie Brass Company, a company from Phoenix (CA) specialized in metalworking, renaming it M3 Metals. First of all, it has started a plan to update and automate all business processes, from the old call center and telephony system to the methods of finding and hiring personnel. After seeing the results achieved in a couple of years, Greg continues to invest in innovation and technologies. He has confirmed that it is an investment that guarantees a certain return.
Four out of 10 entrepreneurs are reluctant to implement new technologies because they are worried about the initial costs.
Small entrepreneurs are naturally predisposed to cut costs. But when it comes to technology, short-term savings often translate into long-term costs.
Companies that invest in technology (e.g., data analysis software and CRM) experience a 10% growth compared to the previous year’s profits.
Technology can help small business owners understand some details of their business that it would be impossible to manage manually. Lamar More is a chef from Chicago who contributed to the opening of several restaurants and invested time and energy in the study and knowledge of business applications such as inventory management software, using them to improve the management of orders in his locals. What amazed him is the number of colleagues who have not yet been able to take advantage of this type of technology.
When it comes to investing in technology, SMEs are often held back by initial costs and concerns and doubts about the constraints they often entail (annual subscriptions and subscriptions, data management, privacy, security …).
When you need to evaluate what your business may need, a little skepticism never hurts, especially when it comes to long-term contracts or other constraints. A bit of skepticism is not to the point of completely renouncing the idea of investing in technologies.
After choosing the solution that best suits your business needs, don’t get carried away, and implement them gradually. In this way, both you and your collaborators will become familiar with the new technologies adopted, acquiring, day after day, competence, and trust in all that digital evolution can do for the success of your company.