Technology Empowers Small Businesses to Boost Sales and Compete with Large Enterprises
Small, medium, and small-to-medium enterprises (SMEs) need to leverage technology for business growth, but it goes beyond integrating administrative tools; interpreting data and adapting to technological changes are crucial, according to Ayman ElTarabishy, President and CEO of the International Council for Small Business (ICSB).
Resilience of SMEs Amidst Global Challenges
During the celebration of International SME Day on June 27, Ayman ElTarabishy acknowledged the resilience of microenterprises and their ability to adapt quickly, innovate with limited resources, and maintain a strong purpose amidst global pandemics, economic uncertainty, climate disruptions, and rapid technological transformations.
Technology Boosts Sales for SMEs
The annual global report on micro, small, and medium enterprises by the ICSB highlights that 8 out of 10 SMEs implementing technology report increased sales. The study, conducted among 7,400 businesses across 78 countries, also points out that businesses using intensive digital technologies (expert users) are nearly five times more likely to report over 50% sales growth compared to those with less extensive use (emerging users).
- 12% of expert users reported over 50% cost reduction, while only 1% of emerging users achieved the same.
- Beyond productivity gains, emerging users reported operational efficiencies, timely production and delivery, as well as improved communication with new clients.
- Three-quarters of SMEs say technology helped them transform their business, improve operations, and enhance communication with clients and employees.
Technologies Propelling SMEs Forward
The report focuses on four technologies—Artificial Intelligence (AI), cloud computing, blockchain, and 3D printing—that SMEs worldwide are adopting, significantly impacting their businesses by enabling innovation and improving product and service quality, leading to growth and increased competitiveness against large enterprises.
1. Artificial Intelligence (AI)
AI technology helps businesses optimize processes, increase efficiency, and allow entrepreneurs to focus on high-value commercial areas, driving productivity.
“Predictive analytics powered by AI can improve demand forecasting, production planning, resource allocation, logistics, and financial risk management.”
2. Cloud Computing
Cloud computing enables businesses to scale and access greater processing power, storage capacity, and software according to their needs.
3. Blockchain Technology
Blockchain reduces supply chain risk by increasing visibility and trust, eliminating errors through the removal of physical documents.
“Blockchain technology enhances supply chain transparency and trust by eliminating paper-based documentation errors.”
4. 3D Printing
3D printing allows SMEs to rapidly develop manufacturing capabilities, reducing costs and making them more competitive against large enterprises.
“3D printing offers cost-effective, rapid, and precise manufacturing solutions compared to traditional methods, balancing conditions between small and large businesses.”
These four technologies are the most accessible and widely used by small businesses.
