Technology companies in the UK are arguing that a small business digital adoption fund should be launched to help these firms adopt modern tech.

Widespread use of the latest technology for businesses is considered essential if the country is to improve levels of productivity, but one out of every three small business owners has stated that they cannot afford to introduce new technologies. Among the digital tools that could potentially increase productivity within smaller firms are the Oracle NetSuite resource planner, the Salesforce app for managing relationships with customers and the Zoom video conferencing app.

Now, the cost barrier to wider adoption of these technologies has led tech firms to argue that a fund similar to the “SMEs Go Digital” one set up in Singapore needs to be made available here in the UK. The idea would see this digital adoption fund provide small firms with grants worth 70% of the cost of upgrading to the latest technologies, with the Coalition for a Digital Economy arguing that this would see the productivity gap between smaller and larger firms reduced.

Closing the gap would lead to a £92 billion rise in UK GDP, with micro businesses alone contributing an extra £16.6 billion if the fund is introduced. Many smaller firms already look for ways to improve their efficiency and productivity, such as bringing in an accountant for small business in Goole or anywhere else they are based to handle the financial management. This leaves them more time to focus on attracting new customers.