Medium businesses, those with 11-249 employees, are responsible for employing over 7.5 million people and turning over almost £1.4 trillion a year, according to national statistics. They play a vital role in helping to power the economy, from designing public spaces to running our high streets, all while competing with large enterprises.
Yet despite their prominent role, medium businesses are not immune to the economic headwinds facing the global economy. Indeed, rising energy costs, declining consumer spending and supply chain issues continue to impact small and medium sized companies.
Against this backdrop of economic hardship, what is helping medium businesses to continue to support the UK economy and even thrive? According to our own research, the answer is technology.
Our research found that 65 per cent of medium business leaders view tech as the biggest driver of growth in their organisations. However, while tech and connectivity both play a significant role in driving growth, a third of medium business leaders say that tech is their number one internal challenge.
Overcoming challenges
Digitalisation offers a wealth of opportunity for medium businesses, but only if they have the right support and guidance. 48 per cent of respondents said they wanted more support from their IT teams to drive their business ambitions.
One of the challenges they face is the use of legacy systems, which can be detrimental to security, employee productivity and talent retention and, over time, hinders their ability to maintain steady growth.
Indeed, security breaches can be a by-product of not having adequate tech and security solutions in place. Our report shows that 24 per cent of medium business leaders cite security as their biggest internal challenge. Supporting this, the Cyber Security Breaches Survey found that 39 per cent of businesses reported suffering from cyber security breaches in 2021, with medium-sized businesses being the most impacted (65 per cent).
Tech is a powerful tool to help businesses maintain growth. However, to make the most of it, security is vital. Ensuring that your business is well-equipped with up-to-date tech and cybersecurity solutions will help you get closer to achieving digital transformation and growth.
IT and connectivity partners can help businesses in this area by providing expert advice on security and recommending solutions tailored to their customers’ needs.
Supporting people
Not only is tech beneficial to security, but also to employee engagement, productivity and ultimately the service provided to clients. Employee productivity is crucial for maximising profitability in any business, and tech plays yet another big role in achieving this.
Our Tech and the Battle for Talent report reveals that 81 per cent of UK workers believe tech plays an important role in helping them stay engaged and happy at work, while poor quality tech made them more likely to resign (48 per cent).
Moreover, our medium business report shows that 87 per cent of medium business leaders view tech as a key contributor to improved productivity and 77 per cent say new tech boosts morale.
Having the right tech makes it easier for people to do their jobs, which ultimately leads to improved client services. When asked what would improve the quality of work delivered to clients, medium business leaders cited seamless integration of devices, automation of standard/manual processes and collaborative tools that support colleagues as the most prominent solutions to invest in.
With 51 per cent of respondents aiming for measured growth over the next year, it is essential that medium business leaders prioritise tech and recognise the numerous benefits that it offers them, including improved security, employee engagement and customer services.
Achieving more together
Technological advancements cannot be achieved alone. Medium businesses need support from partners and IT teams to help them identify areas that could be transformed through tech and effect company-wide change.
Offering medium businesses the support they need through tech, connectivity and training will empower them to achieve measured growth and continue to drive their huge contribution to the UK economy more widely.
This article appeared in our March 2023 print issue. You can read the magazine in full here.