If small and medium-sized enterprises (SMEs) were given access to improved technology they could contribute £79bn more to the UK economy in the year ahead, research has found.
With the government looking at ways to raise funds, the prospect of an apparent £25bn going to the exchequer from increased business activity is surely something worth supporting with more capital incentives.
Quizzing SMEs for its research, Three Business found the vast majority viewed a reliable and fast internet connection as a vital ingredient to help run their business, but just over half were suffering from poor mobile service in their area.
That situation is frustrating given the availability of 5G and high-speed networks across large parts of the UK.
Given that SMEs are the primary customer base for the channel, the Three Business research also has implications for partners keen to help drive more revenues in 2025.
Anthony Impey, chief executive of Be The Business, which worked with Three Business, said a healthy SME sector had wider economic benefits and there needed to be a recognition of the growth potential that could be unlocked with greater infrastructure support.
“Without doubt, small and mid-size businesses are the powerhouse of the UK economy and have a key role in the new government’s mission to boost growth and opportunity in every part of the country. It’s important to also recognise that the leaders of these businesses are some of the hardest working people, often putting in 12 hours a day, six or seven days a week,” he said.
Using new technologies, including generative AI, is essential if SMEs are to become more productive and have the capacity to innovate and grow
Anthony Impey, Be The Business
“Using new technologies, including generative AI, is essential if these businesses are to become more productive and have the capacity to innovate and grow. As this report shows, this is going to require these technologies to be easy to access and that there’s high-quality connectivity readily available to support them,” he added.
The secretary of state for business and trade, Jonathan Reynolds, outlined the government’s aims with its modern industrial strategy earlier this month.
He talked of the need to support high-growth areas and be pro-business if the economy was going to grow and support increased job creation.
Having published a greenpaper, the government is now seeking views from businesses around its strategy, which should be published in spring 2025.
Mike Tomlinson, managing director of Three Business, welcomed the sentiment of the plan and encouraged more support for SMEs.
“Technology is a key driver and enabler of growth for businesses, which are at the heart of the UK economy. This was recognised in the government’s long-term industrial strategy, published last week, which outlined a focus on supporting businesses that can deliver growth in the tech sector, as well as aiding the adoption of technologies that can aid boost the productivity of our businesses,” he said.
“At the same time, through the combination of Vodafone UK and Three UK, we would be able to invest £11bn in growing the UK’s mobile infrastructure, and create a best-in-class 5G network which would further enable economic growth and innovation in all nations and regions,” he added.
