New research shows that the UK economy could benefit from a £79bn boost in the next 12 months, if SMEs c

onnectivity readily available to support them.”

Despite the clear benefits of tech investment, 42% of SMEs are concerned that difficulties onboarding new technologies will impact their business’s ability to grow in future, whilst more than half (55%) say that the costs associated with this are concerning.

Over two in five (42%) said they are unable to prioritise investment in tech, and a similar amount (43%) are concerned that they’re failing to capitalise on emerging technologies.

In addition, almost all SMEs said a reliable (97%) and high speed (94%) internet connection was important for their business.

These were both deemed to be more important than having good local transport links (64%), sufficient office space (69%), and access to skilled labour (83%).

But more than half (53%) of these businesses said poor mobile in their area could affect their ability to grow.

Yet, current connectivity capabilities are working against businesses in the UK, with 5G availability and download speeds lagging significantly compared to Europe.

According to recent research from OpenSignal, the UK came 22nd out of 25 European countries, with London coming last in a list of 10 European cities.

Additionally, the UK’s general network speed is also poor in comparison to Europe, ranking 26th out of 31, according to an Ookla Speedtest in 2024.

In order for businesses to fully take advantage of new technologies, it is clear they need capital – and support investing in this capital.

However, connectivity is the foundation of most businesses, so without critical investments and improvements, the UK will continue to lag behind other nations, both in terms of productivity and growth.

Recommended reading

• What Does Scots Gov Startup Funding Package Actually Entail?
• Is It AI or Bust for the UK’s SMEs?
• Spotlight | Some of Scotland’s Most Interesting AI Startups

“Technology is a key driver and enabler of growth for businesses, who are at the heart of the UK economy,” Mike Tomlinson from Three Business said.

“This was recognised in the Government’s long term Industrial Strategy, published last week, which outlined a focus on supporting businesses who can deliver growth in the tech sector, as well as aiding the adoption of technologies that can aid boost the productivity of our businesses.

“At the same time, through the combination of Vodafone UK and Three UK, we would be able to invest £11bn in growing the UK’s mobile infrastructure, and create a best-in-class 5G network which would further enable economic growth and innovation in all nations and regions.”