According to the International Monetary Fund, increasing the adoption of artificial intelligence (AI) could boost the UK’s economic growth by 1.5% every year for a decade. But the UK is currently lagging behind in the fundamental uptake and investment in technology. The World Economic Forum ranks us well behind most developed nations in the world for technology and ICT adoption (31st).
As the new government puts economic growth and maintaining the highest rate of economic growth in the G7 at the heart of its agenda, we need a plan to rapidly increase digital adoption and skills among SMEs. There are around 5.5 million SMEs in the UK, representing over 99% of the country’s business population and yet there was not one single mention of them in 40 bills introduced this week in the King’s speech.
My company, Enterprise Nation, works with these businesses every day, providing targeted digital support through our platform. We find that SMEs are already ready and willing to embrace the benefits of new technologies, but face a mix of challenges that prevent them from doing so.
These business owners are simply busy using their limited resources to get on with the job. In this context, digital investment and upskilling are seen as additional items on their ever-growing to-do list. Much has been made of the importance of AI on our future economy, but before this can happen, we must first turn the dial on basic skills amongst small businesses.
As the new teams at the Department for Business and Trade and the Department for Science, Innovation and Technology take shape, Chancellor Rachel Reeves’ first speech set out some fundamental cross-departmental priorities: a key part of her plans will be to work with the private sector to deliver investment, skills, innovation and growth.
I have always believed that helping our small businesses to thrive should not be the sole responsibility of government. The private sector has much to give – and much to gain – from a vibrant and thriving small business sector.
This is the guiding principle behind our work. By working with the private sector, we are developing business support technology solutions that are already tried and tested – and are ready to do much of the heavy lifting. We worked with the likes of Google, Cisco, Vodafone Business and Sage to create a free Tech Hub to accelerate digital adoption by SMEs and boost the nation’s productivity.
We also developed a one-stop-shop business support platform with Mastercard’s Center for Inclusive Growth, which analysis shows has resulted in an 11 per cent increase in the digital skills of 3,500 small business owners, rising to 17 per cent for ethnic minority founders and 24 per cent for female founders.
This three-year digital programme has been delivered at no cost to the businesses using its resources – all at no cost to the public purse. One of the key principles of this technology is that everything a small business owner needs is in one place. This includes the over 1,000 peer-rated resource programmes we have sourced from accredited providers, allowing us to reach a diverse audience of entrepreneurs.
Skills and confidence, as well as investment, play a key role in how technology transforms businesses – and ultimately our economy. So, any attempt to force or encourage adoption needs to be delivered with digital guidance and support and made as flexible and as easy to access as possible.
Government cannot achieve its ambitious goals alone, but neither can the private sector. We need a collaborative partnership working in tandem to realise the UK’s digital potential.
The Tech Hub’s policy consortium produced a report outlining the steps we believe the Government should take to encourage digital adoption by SMEs. These include proposals for the Government to offer targeted tax incentives as well as providing new training programmes and support to create more awareness and proficiency in using new technologies and address their concerns where legal concerns around AI for example, prevent them from using the technology effectively.
Entrepreneurial skills will be crucial to improving productivity, providing a platform for businesses to create good jobs and boosting local economies. Digitisation underpins each of the government’s growth priorities and the fundamental changes outlined in its manifesto – such as rethinking business rates, boosting SME procurement and tackling late payments.
Even the VAT threshold cliff edge, one of the thorny issues often blamed for limiting ambition, could be smoothed over with technology. In short, the solutions exist, the private sector is ready to invest and the transformative technology is ready to be unleashed. Let’s do business.
