Technology adoption slowdown seen in 6 in 10 micro-businesses

Micro-businesses cited lack of funds as a barrier to technology adoption.

Six in 10 micro-businesses said they reduced (16%), halted (28%), or had no (16%) technology adoption plans in 2021, a survey from UOB FinLab showed.

About 54% of the surveyed businesses said the lack of knowledge on operating digital tools was the biggest barrier to technology adoption, followed by lack of funds (43%), and lack of support within and outside their organisations (32%).

Shannon Lung, head of The FinLab, said it’s "critical" for micro-businesses to be able “to overcome the hurdles of technology adoption” as the study found that “digital solutions is key to achieving performance targets and goals.”

Based on the report, nine in 10 of those who embraced digital solutions record an improvement in their business performance, including increased productivity and optimised processes (66%), increased sales and revenue (31%), and greater brand awareness (21%).

Amongst types of technology solutions, micro-businesses particularly those which are home-based, are looking to adopt customer service solutions (60%). Others, meanwhile, placed greater emphasis on payment and financing tools (50%); artificial intelligence and machine learning solutions (64%); green solutions (34%); and ​​blockchain technologies (23%).