This is just one of the insights gleaned from the latest Barclays Business Barometer, in which 595 SME leaders were asked a series of questions in a study conducted by YouGov on behalf of Barclays. It was noted that the sample was representative regarding region and industry.

Concerning the headline statistic that innovation-minded SMEs are spending nearly half of annual income on technology, the Barometer found that 44% are doing so to future-proof their business and 45% to increase productivity as a mitigative manoeuvre against the backdrop of rising interest rates and costs.

The Barometer highlighted how retailers in particular are adopting and utilising contemporary technologies in a bid to better reach customers and drive growth. For instance, while the research found that 66% of retail SMEs are open to embracing new technologies, the past year has already seen retailers actively committing financial resources to technology to enhance operations, such as data analytics (18%) and artificial intelligence and machine learning (12%).

What’s more, 41% of retailer SMEs have established dedicated technology teams within their businesses, with 13 people on average working as part of these teams.

This comes amid the positive news that 57% of SMEs reported revenue growth last quarter, marking the highest level in 18 months. The majority (62%) of SMEs also believe this trend will continue further, predicting revenue increases in a year’s time.

Retailers are especially confident about growth over the next year, with 85% reporting a positive outlook when compared to the last 12 months.

Commenting on the latest Barometer findings, Colin O’Flaherty, head of SME at Barclaycard Payments, said: “It’s promising to see that SMEs are feeling more optimistic about revenue growth and are eager to invest in cutting-edge technology to future-proof their companies.

“Retail SMEs in particular have displayed a remarkable agility in adapting to evolving consumer behaviours by adopting emerging technologies – setting the stage for a brighter year ahead.”

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Relatedly, and according to a 2022 report from Sage, SME growth and performance driven by tech is directly contributing £216 billion each year to the UK economy. However, the report highlights that economic modelling shows a further £232bn per year could be unlocked.

Earlier this year, DIGIT reported on the news that the Hartree Centre — the promoter of digital innovation in the UK — awarded £4.5 million to three universities to become regional digital transformation hubs for SMEs.

As regional digital transformation hubs, the aim is to deliver accessible support for SMEs to improve their competitiveness and growth through the utilisation of digital technologies and methods.

The funding was made as part of the Hartree National Centre for Digital Innovation programme, helping to equip UK businesses with the skills and knowledge to adopt digital technologies like AI, data analytics, supercomputing, and quantum computing.