Skip to main content

UK economy could see huge boost if SMB tech investment unlocked

digital banking money bank
(Image credit: Shutterstock)

Small and medium-sized businesses (SMBs (opens in new tab)) in the UK know very well that investing in new technology could be the way to mitigate the damage caused by the Covid-19 pandemic.

This is according to a new report from cloud business management solutions provider Sage, which claims that realizing SMBs’ (opens in new tab) current appetite for technology investment in full could drive up to $188 billion in economic output as a result of improved productivity.

Further, it could deliver up to $423 billion in additional SME revenue each year and support up to 2.7 million jobs across the country.

Sage also believes that swift government intervention to encourage digital adoption could result in more than $65 billion in revenue, $26 billion in economic output, as well as support for roughly 400,000 jobs.

Polling 1,000 UK SMBs for the report, Sage found that almost half (43 percent) want to urgently invest in new technologies in order to remain competitive and drive up productivity. Almost three quarters (72 percent) believe additional investments into key areas could result in increased performance and better recovery support.

“This increased appetite presents an opportunity to underpin fundamental long-term productivity improvements among UK businesses,” said Sage.

However, Covid-19 and the subsequent lockdown have forced many organizations to go into “battery saving” mode, minimizing expenses wherever possible - and this means tech investment may fall by the wayside too.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.