With data from YouGov¹ emphasising that digitalisation is crucial for business growth over the next 12 months, experts reveal that micro and small-sized businesses are at the forefront, comprising 87% of all UK DDCs.
In today’s rapidly evolving business landscape, the rise of digitalisation has significantly transformed the role of the entrepreneur, reshaping business models and expanding the skills required for success.
To help business leaders adapt and thrive, experts at money.co.uk business credit cards have analysed how businesses of different sizes are digitalising and offered tips, including strategic tech investments.
Small and micro businesses lead the charge on digitalisation:
|
Size |
DDCs |
Percentage |
|
Large (250+ employees) |
350 |
4% |
|
Medium (50-249) |
870 |
9% |
|
Small (10-49) |
2,300 |
24% |
|
Micro (1-9) |
6,000 |
63% |
|
Total |
9,600 |
100% |
Data-driven companies (DDCs) focus on optimising daily processes for digital innovation. This digital-first focus is becoming increasingly necessary for businesses of all sizes to compete effectively in a digitalising landscape.
Despite their vast resources, large businesses represent just 4% of the total DDCs in the UK. Medium-sized businesses, with 870 DDCs, account for 9%. Small businesses recognise the importance of dedicated digital teams, with 2,300 DDCs making up almost a quarter (24%) of the UK.
Interestingly, micro-businesses with 1-9 employees lead in DDCs, with 6,000 firms of this kind, representing almost two-thirds (63%) of the UK total. These smaller companies prioritise the role of digital tools in levelling the playing field with larger businesses by driving innovation and efficiency.
Becoming a DDC can be a strategic move for business owners who want to enhance their digital capabilities and stay competitive. The existence of almost 10,000 DDCs in the UK underlines their effectiveness in navigating the challenges of the rapidly evolving business landscape and achieving success in a digital-first world.
Kyle Eaton, money.co.uk business credit card expert, offers his expertise:
“As businesses increasingly adopt digital-first strategies, the skills required of entrepreneurs now include a deep understanding of digital and social marketing, cybersecurity, data management, and more.
“The key is being open to open-ended adaptation as new platforms and technologies continue to emerge and influence the business landscape. Here are some tips to help your enterprise thrive in the increasingly digital landscape:
1. Use business credit cards for digital investment
“Digital transformation often comes with significant costs, from upgrading IT infrastructure to investing in cybersecurity. One way to mitigate these expenses and avoid falling behind in the digital movement is through responsible lending, such as using a business credit card.
“Business credit cards help with cash flow and provide opportunities to earn rewards on your purchases. It’s crucial to use this tool responsibly. Pay off balances monthly to avoid interest, and carefully track your spending to ensure it aligns with your budget and digital strategy.
2. Prioritise cybersecurity investments
“As businesses digitise, the risk of cyber threats grows. Four in five (80%) global businesses have increased their cybersecurity investment to protect their digital assets. Cybersecurity investment is not optional for businesses but rather a necessity. Invest in robust security solutions, including firewalls, encryption, and employee training to protect your digital data.
3. Embrace cost-efficient digital tools
“Reducing digitisation costs is essential for small businesses with lower budgets or experiencing budget cuts. One of the most cost-effective ways to embrace digital transformation is using open-source software. These tools are usually free or low-cost and are constantly updated.
“Many of these platforms offer options for customisation, allowing you to tailor them to your business needs without the cost of private software. By integrating open-source tools into your company, you can improve your digital functionality while keeping costs in line with your budget.
