Small firms see technology as the key growth driver

New research carried out by Dell, in conjunction with the IoD (Institute of Directors), shows that over four out of five (84%) UK small and mid-sized enterprises (SMEs) consider technology to be a key factor in helping grow their business. Almost three quarters (73%) cited productivity as the main reason for their investment.

For small business owners, these reasons are compelling enough for them to invest significant budgets in IT. Averaging £160,000 per annum these budgets are mainly funded by cash (84%). Other forms of financing include leasing at 7%, hire purchase at 5% and only 1% turning to loans.

SMEs are going Mobile

Small businesses also appear to be realising the benefits of mobile working. Investment has been high in mobile technology, with almost two thirds of SMEs questioned using wireless technology and 25% have a wireless LAN.

The survey also showed that the investment focus is shifting towards ‘mobile’ with almost half of businesses planning to change their purchasing strategy from desktop computers to notebooks.
Additionally, when questioned about the ideal technology solution they would like to implement in their organisation, most purchasers opted for something wireless based, choosing solutions with a wireless local area network, including a VPN and 3G for those on the move.

Data Security is Key IT Concern

Despite evidence of sound purchasing decisions, SMEs still have numerous IT concerns. Almost two thirds cited data security as a significant worry, and over half of respondents are concerned about their disaster recovery plans.