Are digital skills the make-or-break factor for modern SMBs?

In a world where a single tweet can launch a brand or a viral TikTok can transform a small shop into a global phenomenon, digital literacy is the difference between SMBs thriving or falling behind. Today, entrepreneurs are faced with a new reality: digital hesitancy is just as – if not more – important than understanding business cash flow or generating sales.

Unlike large corporations with extensive budgets for digital transformation, SMBs contend with limitations on time, resources, and expertise. As a result, a widening digital skills gap is emerging – but one that if left unaddressed, could put smaller businesses at a significant disadvantage.

With the technology available today, digital competency shouldn’t stifle SMBs in their growth potential.

The UK SMB digital deficit

Did you know that approximately 60% of the UK’s workforce struggles to perform all 20 digital tasks considered crucial by industry and government standards? That’s around 23.4 million people struggling to use the internet safely, access personal data such as payslips, and complete tasks that boost productivity, such as sharing files online. The UK’s Essential Digital Skills gap is defined by 5 key areas including handling information and content, communicating, transacting, problem-solving, and being safe and legal online.

However, these skills are not acquired organically. Even though the pandemic accelerated digital upskilling, people are not building the full suite of digital essentials, leaving themselves exposed to the risks of online harms and missing out on vital opportunities. The pace at which technology is changing means even those who are digitally capable today are at risk of becoming digitally and economically excluded tomorrow.

The nationwide digital skills gap affects businesses of all sizes, but the challenges are particularly acute for SMBs. With limited resources, SMBs often find it difficult to attract and retain skilled digital professionals, especially as competition for talent intensifies. As digital proficiency becomes increasingly essential, businesses without these capabilities risk falling behind, unable to keep up with the demands of a rapidly evolving digital economy.

Working smarter with digital tools

There are huge capability gaps hidden in plain sight, each of which form the foundation of what it means to be digitally literate in today's workplace, enabling employees. Many SMBs mistakenly believe that embracing digital tools requires significant financial investment or complex technological overhauls. However, there are numerous affordable solutions specifically designed to help smaller businesses streamline their operations and work more efficiently.

For example, cloud-based solutions offer immediate benefits by enabling businesses to manage their websites, data, and customer interactions with ease, linking back to the skills of handling information and content. These platforms provide scalable infrastructure and seamless integration with various applications, allowing SMBs to operate without requiring extensive technical expertise. Through their adoption, many businesses experience significant efficiency gains, aligning with the need for better problem-solving in the workplace.

Digital marketing automation tools are another solution businesses can leverage to support employees with communicating effectively online. Automated email campaigns, social media scheduling, and real-time customer feedback systems empower SMBs to engage with their audience efficiently, despite having smaller teams. By streamlining marketing efforts and enhancing audience engagement, these tools help businesses to improve operational efficiency, freeing up employee time to focus on building relationships and driving growth.

Another critical area where SMBs need support is cyber security, particularly in detection and prevention. Research has shown that 22% of businesses have experienced cybercrime in the last 12 months, yet out of the top 10 essential digital tasks that people struggle with, four relate to cybersecurity – such as managing privacy settings on social media or updating software to prevent viruses and other risks. Implementing malware protection is one of the simplest and most effective ways to guard against cyber threats. For SMBs with limited IT resources, this type of solution provides an additional layer of security without the need for extensive technical knowledge. This, combined with regular software updates and the implementation of privacy settings can significantly reduce the risk of cyber incidents.

Enhancing digital skills for a future-ready business

No longer should the digital skills gap hold your business back from its full potential. Ultimately the businesses that succeed will be those that embrace digital transformation. By equipping your workforce with the skills and tools they need, you’ll not only enhance operational efficiency but also unlock new growth opportunities. The future is digital, and the steps you take today will determine how well your business navigates the challenges and possibilities ahead.

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