Virgin Media Business, in association with Oxford Economics, have today published their new research report, which suggests that an extra £92bn and one million jobs could be added to the UK economy if businesses of all sizes embraced digital technologies. Small to medium-sized enterprises are expected to gain a £56 billion boost through the availability of digital technology.
The report, titled, ‘The UK’s £92 billion Digital Opportunity’ saw 1,049 UK-based businesses from a range of industries, including ICT, retail, and manufacturing. The report found that some industries had more to gain from digital technology than others – with businesses in the professional and tech services industry potentially gaining £27 billion a year in revenue. On average, the report found that businesses who deployed full digital capabilities stood to see a 4% increase in revenue.
One digital technology most surveyed agreed was one solution to build on digital capability was broadband connectivity. 54% said that a faster and more reliable broadband connection would help them overcome obstacles to growth. 66% reported that this had a high likelihood of being implemented over the next three years. A large percentage of respondents also cited cheaper digital tools and solutions as a way to improve digital capabilities, though less saw this likely to be implemented in the next three years.
Businesses who had already prioritised investment in digital technologies were classified by the survey as Digital Leaders – these businesses reported that they had been able to reach new customers using technology, while 87% of them said that technology had resulted in a happier and more engaged workforce. Technologies implemented by these Digital Leaders included cloud services, as well as fast and reliable broadband connections. Virgin Media Business reported that on average these Digital Leaders don’t spend any more money on technology than other firms, just spend the money more effectively, and see a 5.3% improvement in revenue as a result.
For small to medium-sized enterprises, digital technology presents a great opportunity. Though smaller businesses have less resources than giant corporations, proper investment in staff and valuable technologies could bring real growth.
John Allen, Chairman of the Federation of Small Businesses commented on the report saying: “Small businesses face challenges when it comes to digital technologies, from access to ultrafast broadband to finding staff with the right skills. This report shows that if they can overcome these, it will greatly enhance their opportunities for growth. The FSB calls on the Government and industry to continue helping our small businesses achieve their full digital potential in the years ahead.”