Scotland’s small businesses are seeking to adopt technology, but see time, money, and a lack of understanding of the landscape as key barriers.

In a survey commissioned by Virgin Money, 79% of small and medium enterprises (SMEs) in Scotland said they were likely to adopt new technology in the next five years to support business performance and growth.

A similar number (82%) believe technology can enhance success, and almost three quarters (71%) are planning to upskill their workforce to adapt to digital technology.

However, despite the survey results showing that Scottish SMEs desire tech for business growth, data showed that there are still common barriers among SME decision makers slowing progress.

Around 38% of respondents cited a lack of funding as the main factor preventing them from using advanced technology, while 29% said it is a lack of time to implement and 21% said a lack of understanding of what tech can do. A quarter said advanced technology was not relevant to their business.

The survey of small business decision makers coincided with a futures report predicting that advances in technology in the coming decades are set to transform the small business environment.

In the ‘Quantum Leap’ report, UK futurologist Dave Coplin predicted a series of tech-driven changes for SMEs. One of the most notable is the emergence of intelligent, virtual avatars, made possible by advances in artificial intelligence, machine learning and quantum computing.

Coplin also said that the ongoing growth and development of technology will support all SMEs in Scotland to operate globally and do business anywhere in the world, regardless of location, language, and time-zone.

Commenting on the research, Coplin said: “Today’s technology is enabling us to do things we couldn’t have imagined and certainly didn’t predict thirty years ago. The next few decades are going to see technology undergo similarly spectacular leaps. AI is going to be a game-changer and it will impact every area of our lives.

“SMEs will not be immune, and they need to be on board this journey; it’s notable that a quarter of SMEs in Scotland don’t perceive technology as relevant to their business. Ignoring it will undoubtedly mean missing out on huge commercial opportunities.

“SME leaders should focus on building their capacity now to adapt their business in response to the changes coming down the line.”

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Graeme Sands, Head of Business Products and Lending at Virgin Money, added: “Technology will continue to accelerate rapidly, enhancing the way businesses operate, but many SMEs are concerned they could be left behind due to significant organisational barriers.

“Lack of time and money are age-old challenges for SMEs, and many also struggle to understand what tech is right for them.

“There is a clear gap between what SMEs want to do with technology and what they have the means to do, so Scotland’s small businesses need additional support and assistance to bridge the gap and ensure they keep up with digital transformation.”

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