What’s the biggest technology challenge facing your business?

Keeping up with the pace of change when you’re running a business is a relentless challenge, especially when it comes to technology. In truth, most UK SMEs aren’t facing one technology challenge, they’re juggling several at once. So, what are the most common technology challenges facing UK SMEs and how can you best negotiate them?  

1 Security 

According to the government’s Cyber Security Breaches Survey, 43% of UK businesses suffered a cyber breach or attack in the 12 months to June 2025. Rates were higher for medium-sized (67%) and large (74%) businesses, although small firms are often targeted, because attackers believe they lack adequate security. Ransomware, phishing, credential theft and supply chain attacks remain key threats – and the consequences can be devastating. 

• Small businesses can mitigate risk by keeping their devices and software updated, while using strong unique passwords supported by multifactor authentication.  
• Critical data should be backed up regularly to a secure offsite or cloud location, while your people should receive current cyber security training.  
• Encrypting sensitive information, limiting user access and using reputable security tools such as firewalls and endpoint protection can bolster your cyber defences. 

Top tip! You should also have a well-considered incident response plan, detailing what key steps need taking should your business suffer an attack. It could really help to limit damage and help you to get back on your feet much quicker. 

2 Scalability 

Many small firms rely on legacy software, spreadsheets or manual processes that worked well enough when the business was smaller. But as you gain more customers, take on more staff and your operations become more complex, your systems can really start to struggle. 

Slow systems, data silos, duplicated effort or difficulty integrating new tools can all be evidence of tech-scalability issues. Cloud platforms have made scalable technology more accessible, but migrating data, redesigning processes and retraining staff all require time and planning. 

Top tip! Balancing the need to regularly update your technology while keeping your business running smoothly can be a challenge. Don’t try to update too much at once; stagger the process and schedule updates for when they’re least disruptive. 

3 Efficiency and productivity 

All business owners want to boost their efficiency and productivity, but technology can be a headache-inducing barrier rather than powerful enabler. Too many UK SMEs invest in software that adds unnecessary complexity or duplication because it can’t be integrated with their other systems. And many small businesses still do things manually, when technology could automate them. 

Efficiency and productivity are hampered by a fragmented approach to technology, with data siloed and information that cannot be easily shared. This impedes efficiency and productivity, with businesses having to spend more time on tasks that should be much simpler and quicker.   

Top tip! Simplify and consolidate your systems. Invest in digital tools that can be integrated seamlessly. Obviously, you must choose the right technology, but implementing it in the right way is essential.  

4 Skills and people 

Having the right technology is only part of the solution, of course. You also need people who know how to get the best returns from it. Many UK SMEs struggle to recruit and retain staff with the necessary digital technology skills. 

Training can make a big difference, but it requires time, money and the right training provider who will give your people the knowledge they lack. And relying on a “learn-as-we-go” approach is ill advised, certainly when it comes to more complex digital technology. It takes longer, your people can get into poor habits, your productivity may not be maximised, and expensive mistakes are more likely. Bad idea. 

Top tip! To get the best returns, you need to create a culture within your business that embraces technology rather than fears it. Your people should be encouraged to want to use the latest digital tools to their and your full advantage. 

5 Technology knowledge 

Knowing what technology to invest in remains a key tech challenge facing many UK SMEs. The tech market is highly saturated, with things changing by the week, as new solutions and updates become available.  

Making bad technology choices or not staying up to date can have a harmful effect on your business and your people. Choosing the right technology, implementing it in the right way and keeping it up to date can make a significant difference to you bottom line. You probably have many other things on your plate, and your tech knowledge may well be limited. But that doesn’t mean – budget permitting – that you can’t get help from others.  

Top tip! If you lack knowledge, access expert technology support. See it as an investment rather than a cost. Free expert tech advice is available (see below). 

• Tech Adoption for Growth is a new, government-funded pilot programme offering free, practical digital support to help SMEs and sole traders in the South West get more value from digital tools. Eligible businesses are assessed and then randomly allocated to receive either one-to-one expert support or take part in expert-led workshops. Apply now.