- Investment in cybersecurity expertise set to increase by a third next year as 44 per cent of businesses cite this as a major concern, compared to 34 per cent who worry about the consequences of Brexit
- Juggling a string of new demands on their budget, one in three (34 per cent) small businesses worry about managing multiple priorities – yet those who invest benefit from happier customers and increased sales
- Demand for a new breed of advisers to help SMEs futureproof their business is set to include ‘next generation’ payment professionals and ‘tech overload' therapists
Britain’s SMEs are shifting the billions spent each year on hiring traditional experts, such as legal and procurement consultants, to leverage the skills required to survive in an increasingly digital world, including those for cybersecurity and new payments technology.
According to research from Barclaycard, which has helped make businesses successful for over 50 years, UK SMEs now invest £2.9bn annually on cybersecurity experts to help them stay ahead of the latest threats. This equates to an average figure of £1,600 per business, with many larger SMEs spending ten times more. The same amount (£2.9bn, or an average of nearly £5,000) is channelled into support for implementing new payment innovations such as contactless technology, which Barclaycard introduced to the UK in 2007.
Small businesses have increased their spending over the last five years on cybersecurity professionals by 43 per cent, and by nearly 31 per cent on payment innovation. SMEs plan to continue investing next year, with spend on cybersecurity expertise set to increase by 32 per cent and payment innovation by 23 per cent.
In contrast, demand for more ‘traditional’ experts is falling. One in three (33 per cent) SMEs have decreased investment in procurement, for example, as they believe it is becoming less relevant for their business. And the 15 per cent of SMEs who cut spending on legal and compliance experts did so to make way for spending on new skills to futureproof their business.
Managing competing demands
With small businesses facing challenges from all directions – including an uncertain economic landscape and changing consumer preferences – more than a third (34 per cent) are worried about their ability to manage these multiple demands and priorities as their business grows.
Such is the concern among SMEs about cybersecurity, for instance, that it is a greater worry for many than the uncertainty surrounding Brexit. Four in ten (44 per cent) small businesses fear being victim of a cybercrime or data breach, compared to three in ten (34 per cent) who are anxious about the impact of Brexit on their business.
The research suggests SMEs can make their budget work harder by hiring experts who provide support across multiple areas, especially when it comes to technology. Of the small businesses that increased spending on fraud prevention, for example, a fifth (23 per cent) subsequently noticed a rise in sales and customer satisfaction, likely due to improved customer confidence.
The experts of the future
Looking ahead, SMEs will need to engage experts of the future to keep up with nascent trends. This includes ‘next generation’ payment specialists who would advise on emerging technology such as ‘conversational commerce’ – which uses digital assistants to make a purchase – and ‘invisible payments’, where card details are saved in advance of a transaction, such as for one-click ordering. A third (33 per cent) of businesses have never heard of these technologies, despite 44 per cent of consumers being keen to pay in these ways.**
Beyond the evolution of payments, futurologist David Price OBE predicts that British businesses will face even more challenges and will subsequently need a wide range of experts over the next decade. These include:
- Social purpose consultants who will work alongside SMEs to ensure they respond to growing demands from millennial customers for a service driven by ethical practices
- ‘Tech overload’ therapists to support employees who have become overwhelmed by being part of an ‘always on’ society
- Online experience designers, responsible for improving user experience by incorporating virtual and augmented reality technology into online interactions
Sharon Manikon, Managing Director of Customer Solutions at Barclaycard, said:
Futurologist David Price OBE said:
For more information please contact Chloe Wilkinson, Senior PR Manager, Barclaycard, on +44 (0) 20 3555 4036 / +44 (0) 7469 031 300 or firstname.lastname@example.org
Online interviews were carried out with 500 senior decision-makers from SMEs by Opinium research from 2nd – 9th June 2017.
*All mean figures have been weighted to take into account the quantity of multiple types of SMEs across the UK from ONS data. This includes sole, micro, small and medium sized companies.
** According to research carried out with 253 decision makers within B2C SME retailers between 31st March and 1st April 2017 and 2,010 adults aged 18+ (nationally representative) was conducted between 4th and 7th April 2017. All research was carried out by Opinium Research.