Technology Helps Virtually All Small Businesses Be More Effective

Technology Helps Virtually All Small Businesses Be More Effective
Technology has been a huge boost for Small Businesses (SMBs) throughout the pandemic, not only helping them survive lockdowns, but also enabling them to grow their businesses and be more efficient. That's according to a new report from Hitachi Capital Business Finance, which found that XNUMX% of small and medium-sized businesses used technology last year to improve their operations. An even higher percentage: XNUMX% have tested at least a modest development, while XNUMX% of them expect "significant expansion" in the future. The pandemic has played a key role in this regard, adds the report, stating that in the months and years prior to Covid-XNUMX, practically a third of small and medium-sized companies (XNUMX%) stated that their technological capabilities were holding them back. Of all the different technologies and use cases, the greatest effect has been felt in the optimization of service to the customer of the service. Productivity improvement and cost reduction were also mentioned as the main areas for improvement. A significant minority of small businesses (XNUMX%) have used new technologies to improve the productivity of their remotely working staff. This further assisted in reducing travel time to and from meetings and improving employee productivity. Finally, new technology has introduced smarter and more secure ways to store and manage confidential information. It was also stated that new technologies also make small and medium-sized companies more respectful of the environment.

Cash management assistance

Cash is also better managed with technology. Some have used it to reduce overhead, others have saved ancillary funds on the cost of new business. In some cases, SMEs have also been able to reduce staff costs, while others have become more competitive in the larger market. A year and a half into the pandemic, technology is now "at the heart of business and operations planning" for many SMEs, said Joanna Morris, a director of insight at Hitachi Capital Business Finance. “The adoption of technological innovations is also related to the development forecasts of small business owners for the coming months,” she added. Research has proven that the pandemic has been "painful" for many small and medium-sized businesses, but has helped them become more digital and effective businesses, she concluded.