Rising costs and competition are the biggest challenges small businesses face this year but many believe that technology is the solution to their worries, a new survey suggests.
Data from research house David Lewis shows that 35% of business owners are most concerned about the effect that other companies will have on their margins.
The research, commissioned by Extrasys, also found that 28% of businesses thought that rising prices on commodities, such as fuel, was their main problem.
New technology is deemed to be the main way in which businesses want to counter these problems, with 80% describing it as ‘strategically important’ to their success.
However, small businesses are concerned with their IT security and 60% believe that their network is too vulnerable.
Simon Arbuthnot, operations director, Extrasys, said: “It is significant that a large majority of respondents agree that technological innovation is a key component in developing a successful and competitive business.
“Investment in the right solutions can strategically position a company to develop both its market position and secure far more efficient, flexible and secure operating processes.
“It is very clear that accessibility, security and customer service are the main drivers influencing smaller companies' moves to greater technological innovation.”
© Crimson Business Ltd. 2006
