Tech problems cost UK SMEs £10k a year
New research from TalkTalk Business has uncovered that nearly a quarter (23%) of UK SMEs faced technical failures in the past year, leading to significant financial strain. The study found that 17% of SMEs incurred costs between £500-999 due to these tech issues, while 12% reported losses of £2,000-3,999, and 7% suffered a staggering £8,000-9,999 hit.
The high costs of upgrading or replacing outdated technology are another major concern, with 25% of SMEs feeling the pinch. This issue is especially pronounced in the healthcare sector, where 50% of businesses are struggling with budget constraints related to tech upgrades. Additionally, 22% of SMEs feel they are falling behind competitors due to outdated technology.
On average, technical difficulties are costing the UK’s 5.5 million SMEs £3,100 annually. TalkTalk Business surveyed 250 SMEs across various sectors to identify their top tech challenges:
- Slow internet or connectivity issues – 33%
- High costs of upgrading or replacing outdated tech – 25%
- Technical glitches disrupting operations
- Need for employee training on tech use – 19%
- Cybersecurity threats – 17%
- Struggling to keep up with industry tech trends – 17%
- Software or hardware compatibility issues – 15%
- Lack of support or resources for tech management – 14%
- Cloud service issues like downtime or security – 11%
- Inadequate backup and recovery plans – 7%
The research also highlighted that 74% of SMEs depend on Wi-Fi for daily operations, with key tech tools including accounting software (63%), Cloud storage (48%), video conferencing (48%), and payment tools (44%).
Despite ongoing cybersecurity concerns – 17% of SMEs faced a cyber threat in the last year – over half (58%) are not using any cybersecurity software. The average annual cost of tech issues for SMEs is over £3,100, with 7% facing costs as high as £9,999.
Paul Ducklin, Senior Product Manager at TalkTalk Business provided his top tech tips for SMEs in 2024. Here’s a snippet of the tips discussing keeping up with tech trends: "The tech landscape doesn’t stand still for long – SMEs have to keep up to stay competitive. There’s no shortage of free resources available. Follow key publications in your industry, attend webinars and engage with peers and tech experts via online forums and networking events. Tech providers will often share insights into emerging trends, so consider signing up to newsletters and other communications they offer.”
