May 04, 2018

Small Businesses Are Slow to Adopt New Technologies

Cloud computing, blockchain, AI, and other technologies are making serious inroads into the business sphere. Technology is king these days, but for many small business owners, a complete technology overhaul is far from their reality.

In fact, as of survey data from 2017, only 55% of small businesses actually have a website. That’s right, a website. Of course, this might make a little more sense in the context of a study done by the US Census Bureau showing that, in the US, 78.5% of businesses are non-employers without any full-time employees.

In other words, a lot of small businesses are fairly small entities in terms of total working personnel. For these smaller businesses, web hosting may either be infeasible or unimportant to their particular field. That being said, the number of businesses without a website is still shockingly high.

A recent survey done by business.com looked at some of the reasons small business owners choose not to adopt new technology. These include:

  • Not needing new tech (37.22%)
  • Easier to do things the same way as always (22.78%)
  • Too expensive (41.11%)
  • Not enough tech support (24.44%)

The most serious roadblocks that impede the use of new technology are the price of technological services and ease of integration. Most modern tech is expensive and difficult to integrate. Is it better, then, for small businesses to choose to ignore new technologies until they become more affordable? The answer is—sometimes.

Small businesses who constantly attempt to integrate new technologies into their infrastructures often get overwhelmed, leading to productivity loss. But that doesn’t mean small businesses should ignore technology altogether.

According to Rebekah King, director of marketing systems for Cox Automotive, it’s important for businesses to take small, manageable steps towards integrating new tech. “We may have a big vision about unifying our client experience. But we get there through putting one foot in front of the other in a very small and practical way.”

She concludes, “The very practical thing is to just take one piece of the functionality you want to be able to do. If you want to do lead nurturing — lead nurturing is a huge end-to-end vision. So just start with one part of that.” By integrating new tech slowly and methodically, small businesses can stay up-to-date without sacrificing unnecessary resources.

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About the author

Andrew Mosteller
Andrew Mosteller is a freelance writer and regular contributor to Lendio News. His upbringing in an entrepreneurial family nurtured a passion for small business at a young age. Andrew's father, an equity fund manager, taught him the ins and outs of investment financing. Now, Andrew spends his time writing copy for business owners, helping them expand and advertise their unique brands. He's also studying Strategic Communications at the University of Utah. When Andrew's fingers aren't glued to the keyboard, he spends his time reading, podcasting, composing music, and bombing down the ski slopes.

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