Through its Help to Grow: Digital scheme, the UK government is providing businesses with free and impartial information and support to help them adopt new digital technologies. Here, Daniel Harrison, Head of SME policy at the Department for Business, Energy and Industrial Strategy, tells us more about the initiative and why it’s so important that SMEs embrace all things digital.
The UK government launched its Help to Grow: Digital scheme – designed to support smaller businesses in adopting digital technologies so they can grow – earlier this year. Under the scheme, eligible businesses can receive discounts of up to £5,000 off the retail price of approved Digital Accounting and CRM software from leading technology suppliers, to help them effectively manage their finances and build customer relationships.
Businesses can also access practical, specialised support and advice on how to choose the right digital technologies to boost their growth and productivity through a new online platform through the scheme.
Through Help to Grow: Digital, the government is providing business leaders with the advice and funding they need to embrace digital technology and help their business grow.
Daniel Harrison, Head of SME policy at the Department for Business, Energy and Industrial Strategy, tells us more…
How have SMEs embraced digitalisation?
Many UK businesses have embraced digitalisation. For instance, 85% of SME employers are using accountancy software and around 25% are using technology or web-based software to sell to customers online, according to the Longitudinal Small Business Survey 2020.
However, the UK has a longstanding productivity gap to our international competitors and one of the key reasons for this gap is the low adoption of basic digital technologies. Although uptake of digital technologies is improving, and has accelerated during the pandemic, rates of adoption remain significantly below where we would like them to be. Businesses face significant barriers to technology adoption, which the Help to Grow scheme aims to address.
How have digital tools helped SMEs navigate the challenges of the last two years?
Many SMEs are at the forefront of digital development, adopting innovations, sharing ideas and platforms amongst themselves, and offering each other support through digital means.
Through the pandemic, we have seen a significant uptake of technologies to aid remote working, but it is unclear if firms will go even further to adopt productivity-enhancing technologies. This is therefore an opportune time to encourage greater tech adoption.
What are some of the key inhibitors to accelerating Digital Transformation goals for SMEs?
Research carried out through the Business Productivity Review tells us that:
- SMEs do not recognise the benefits of productivity-enhancing software
- Firms struggle to identify the technologies and products that are relevant to their needs
- Executives and managers lack the knowledge/skills to implement these effectively
- Firms cannot easily access trusted advice/guidance in the market
- Software markets are complex and there’s perception solutions don’t meet SME needs
- Adoption costs are seen as prohibitive, exacerbated by COVID-19’s impact on SME finances
Why are digital skills so important for enabling SMEs to scale?
Technology adoption and leadership and management skills are a critical factor in determining firm productivity. The use of one business management technology is associated with productivity gains of at least 10% and adoption of two or more technologies is associated with an increase in productivity of up to 25% in SMEs, according to ONS (2018), Information and communication technology intensity and productivity.
Tell us more about the Help to Grow scheme – what is the aim of the initiative?
Help to Grow: Digital provides businesses free, impartial, online support and guidance on how digital technology can boost their performance. Through the scheme, eligible businesses can take advantage of discounts of 50%, worth up to £5,000, when buying approved software from leading technology suppliers. Businesses are also able to access free support and tools on how to choose the right digital technologies through a new online platform.
What business outcomes can SMEs expect by going through the process?
The support will help many SMEs to start their tech adoption journey or build on existing digital tools they already have to be more efficient and grow. Evidence shows adopting digital software to support their customers, manage their accounts and sell online could save businesses time and money – critical for SMEs trying to survive and grow after the pandemic.
Research in reference to microbusinesses by the Enterprise Research Centre (ERC) has shown that adoption of a range of basic technologies (on-line accountancy software, Computer Aided Design (CAD), Customer Relationship Management (CRM) tools and cloud computing) is associated with productivity improvements of between 7% and 18%.
What advice would you offer SME business leaders when assessing which software/tech is best for them?
The Help to Grow: Digital platform features a diagnostic tool to help businesses decide on the right software for them. Business are invited to answer a short series of questions, including on their sector, their current levels of technology adoption and how existing software is used, and whether most of their sales activity is conducted online, in person or a mixture of the two.
Based on their answers, businesses are taken to an online comparison tool, where they are able to look at software offers from various providers side-by-side.
The platform also features a host of learning content in the form of case studies, articles and video material providing both specific tips and overarching principles for successful technology adoption.
How should SMEs be planning to ensure their organisation is future-proof?
SMEs may benefit from a clear technology adoption strategy to meet their individual business needs and achieve strategic goals.
Many businesses think of growth in terms of increased sales, but it’s also important to focus on how to maintain or improve your profitability.
The Help to Grow: Digital online learning platform provides articles, case studies and video content to help SMEs learn about key productivity-enhancing technologies and how these can be implemented within existing systems. Small business leaders interested in future-proofing their organisations may also benefit from the Help to Grow: Management programme. Intended to complement Help to Grow: Digital, this is a leadership and management programme designed for small business leaders to develop their strategic skills, innovate and plan for growth.