How is digitalisation leading recovery for small businesses?

Small businesses are the pillar of the global economy, accounting for 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide.
 
Economic recovery is only possible if these small businesses can successfully adapt to post-COVID consumer behaviour. This is where digitalisation comes in.

Digital technology will lead the recovery for small businesses, for several reasons.

First, embracing mobile devices has made it easier for people to experience the benefits of digitalisation. The digital shift will only accelerate in the next few years years, as the number of mobile device users in the world is expected to increase from 6.38 billion in 2021 to 7.52 billion in 2026.

Second, the way people shop has been changing for years, with people preferring online shopping. There will always be a role for bricks-and-mortar stores, but the future of shopping is increasingly online. Morgan Stanley forecast the global e-commerce market would grow from $3.3 trillion to $5.4 trillion in 2026, increasing more than 60% in four years.

For small businesses, the benefits of digitalisation are clear. Businesses with a strong digital strategy were already better equipped and diversified to handle the downturn because their online presence mitigated the loss of in-store shopping.
 
According to the Organisation for Economic Cooperation and Development (OECD), businesses that invested in their digital futures experienced several other long-term benefits, including better communications and a smoother entry into global markets.

A study also found that small businesses that prioritised digital transformation saw revenue growth double, compared to those just starting their digital transformation efforts. Growth was eight times higher than those that did not invest in digitalisation.

Digitalisation is on the rise according to the OECD survey, which found up to 70% of small businesses are intensifying their use of digital technologies because of the pandemic.

Are you looking to take the next step in digitalisation? At LMS Group we have the knowledge, experience and resources to transform the way your business uses IT, and help you to thrive in a competitive marketplace. To talk to one of our experts, call 0330 088 2565, or visit our Contact Us page.