Technology is essential for the success and function of SMBs, according to a CompTIA report released on Tuesday. Nearly two-thirds (64%) of SMBs said the use of technology is paramount to achieving their business objectives, the report found.
The report surveyed 650 SMBs across the US, discovering the different ways SMBs use tech in their day-to-day operations. Between implementing new systems and processes, deploying new products and services, identifying new customer segments and markets, or renewing customer accounts, technology is a huge for these companies.
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Medium-sized businesses usually use tech as a strategic tool: 73% said using technology was the main factor for accomplishing overall objectives, the report found. Tech products and services cost SMBs anywhere between $5,000 to $249,000 annually, depending on the size of the organization.
“Whether it’s acquiring new customers, entering new marketing, launching new products, or streamlining operations and processes, technology is at the heart of these activities,” said Carolyn April, senior director for industry analysis at CompTIA, in a press release. “Many small businesses are on the path toward digitizing their environments, using cloud-based solutions and services, and increasingly diving into data analytics to meet customer demand.”
Some 36% of SMBs said their main tech purchases in the last couple years are mainly associated with core infrastructure: Mobile phones, laptops, desktops, servers, and networking equipment, the report found. And 31% of professionals said their organizations make more industry-specific purchases.
If SMBs were able to choose what the spending went toward, 30% said they’d invest in cutting-edge technology, 23% said they would use the funds to upgrade staff computers and phones, and 20% said they would improve websites, e-commerce apps, and mobile apps, the report found.
To learn more about where SMBs are spending their tech budgets, check out this TechRepublic article.
The big takeaways for tech leaders:
- 64% of SMBs said technology use is imperative to meeting business objectives. — CompTIA, 2019
- Most spending is focused on the organization’s core infrastructure, such as mobile phones, laptops, and networking equipment. — CompTIA, 2019