A new survey has revealed that a lack of investment in technology by Scottish small businesses could be affecting productivity.
The Federation of Small Businesses (FSB) survey has shown that the average spend on new technology in the last 12 months was just £2,650. The national average is £3,500.
The survey also showed around 25 per cent of Scottish firms were worried that the lack of investment was seeing them drop behind their competitors. With many smaller firms in Scotland having cash issues as a result of the economy, looking at alternative finance models such as factoring could be an answer.
If there was greater investment, the national figures show that increased confidence could really drive productivity too.
In the survey of 2,000 UK firms, 60 per cent said that investment in tech had positively affected their existing customer communication channels. The same percentage also said it had improved their targeting of new customers.
However, a big issue raised was the lack of local digital infrastructure. The FSB were in agreement with this. Andy Willox, the FSB’s Scottish policy convener, said:
“Scottish firms seem less keen to invest than their counterparts elsewhere in the UK.
“Better infrastructure, they say, would encourage them to invest and we look forward to the promise of improvements in this area becoming a reality.”
He went on to say that there is a need for both Holyrood and Westminster to address the issue, expressing the desire for better broadband access, improvements in mobile connectivity and 4G upgrades throughout the country.