Technology's potential to disrupt SMEs

Small and Medium Enterprises (SMEs) have been facing a plethora of issues due to economy slowdown, high business costs, lack of funding and competitive market to name a few. There are many challenges to their growth amidst competition from global players as well as innovative start-ups. The management of operation is a major issue for them, let alone the growth plan. The disruptive technologies are leading to fragmentation of SMEs. Small businesses need to come under some umbrella which can save them in this shower of new technological services (and harvest its benefits) or, they will fade away.

There is seemingly no practical value to the business by adopting new technological innovations to digitalize. In fact, risks seem to outweigh the profit. While technology drives growth, it seldom limits the growth too. For instance, some businesses are anticipating advanced technologies like 3D printing and have laid a growth plan to benefit in the long term and set aside the key players by adopting the advanced technology. Say, this comes into a furniture e-commerce you can well imagine how will it impact the whole sector of SMEs.

Innovation is no longer unique to the start-ups of SMEs. They need to implement growth plan and work with a vision to realise them. Generally, large market players adopt the technology as well as insights that threaten the very position of SMEs having the ability to overpower them or what we may call to disrupt them from within.

SMEs suffer from constant skill gaps and need to employ skilful manpower to take them to the next level. But they don’t have the money for it. The focus then should be on employing young people who possess entrepreneurial skills. It is important to manage the employees and push them to get the job done. The small businesses need to do the real work of polishing skills of the people and inculcate the responsibility for their work in them. Investing in skills is needed not just in case of people but technologically as well, be it digital or otherwise.

Big players resort to digital driven advancements and innovations which are unlike in the case of most SMEs. They are flexible in their approach and even look up to traditional business approaches to make a profit. They are very open in case of social media and interaction. This might work for some time but technology is the major game changer in a case of industry giants which in turn may disrupt the SMEs.

SMEs should start investing in new technologies and companies that can take away the daily struggle of management and bring forth the subsequent positive changes for them.