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Adapt or die: SMEs faced with extinction if they don't change

Here's a grim prediction on the future of small and medium-sized enterprises (SME) worldwide. They'll all be out of business in five years, if they don't change their business model.

The prediction, released in a new report by software provider Exact, is based on a poll by SMEs themselves. More than a third (38 per cent) believe digital disruptors will shove them aside if they don't adapt, but just two per cent are actually doing something about it.

Almost two thirds (64 per cent) are facing competition from new digital companies, yet just six per cent are investing in new technologies to keep up. More than half (56 per cent) are 'exploring new business models', both in Europe and the States.

The information comes at a time when the majority of SMEs are looking to grow. Almost three quarters (73 per cent) of SMEs in the UK said they're planning on growing. Gavin Fell, General Manager of Exact Cloud Solutions UK, said, “It’s great to see that there’s such a positive outlook among SMEs, but it’s clear that in order to deliver on those ambitions businesses need to adapt to the times. Digitalisation is going to be key to ensuring you are not only efficient, but remain competitive in today’s highly challenging environment.”

As expected, cloud technologies are at the very heart of this digital transformation, with 58 per cent of SMEs using one or more cloud tools, up from 47 per cent same time last year. For almost two thirds (63 per cent), this remains a top priority.

Image Credit: ilikestudio / Shutterstock

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.