Small-Medium Businesses Face Barriers to Technology Adoption

Findings from a global survey of more than 200 small- and medium-size businesses conducted by AI Business and IoT World Today

Scarlett Evans, Assistant Editor

March 8, 2023

1 Min Read
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At a Glance

  • Small companies cited lack of talent and budget, and integration complexity as the top barriers to technology adoption.
  • Larger companies cited lack of strategy, integration complexity and talent shortage, and compliance concerns as barriers.

Depending on company size, barriers to technology adoption range from the lack of qualified staff to a lack of strategy.

Those are among the findings in a global survey of more than 200 small- and medium-sized businesses conducted by IoT World Today and AI Business.

The survey found a lack of qualified in-house personnel, a lack of budget and the complexity of integrating these technologies to be the three primary barriers to adoption for SMEs. 

For smaller companies (those making less than $50 million a year in revenue), lack of talent and budget were the two main obstacles, with 40% of business people identifying them as their top concerns. Complexity of integration was the third largest barrier, with 38% identifying it as a main concern. 

Larger companies (those with revenue of $50 million to $1 billion) identified different barriers. 

The primary barrier to technology adoption for larger firms was lack of strategy (37%), followed by complexity of integration and lack of talent (32%). Third was compliance and regulatory concerns (30%). 

For companies developing and deploying these technologies internally, lack of budget was the leading adoption barrier for almost half (48%). For those relying primarily on external sources for this technology deployment, lack of talent and complexity of integration were the main obstacles (49%).

Related:Small-Medium Businesses' Top Challenge Is Lack of In-House Talent

By region, businesses in North America said lack of talent was the leading barrier (40%).

In Europe, lack of budget was the leading obstacle to technology adoption for businesses, although lack of data and data quality issues was also a leading issue for smaller businesses.

About the Author(s)

Scarlett Evans

Assistant Editor, IoT World Today

Scarlett Evans is the assistant editor for IoT World Today, with a particular focus on robotics and smart city technologies. Scarlett has previous experience in minerals and resources with Mine Australia, Mine Technology and Power Technology. She joined Informa in April 2022.

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