Many firms lukewarm on tech returns

Small and mid-size businesses spend on technology, but many aren’t sure they’re getting their money’s worth, according to a survey by CompTIA, a trade association for the information technology industry.

The survey of 600 companies found that the tiniest spend an average of US$29,400 annually on technology, somewhat larger small businesses spend an average of US$505,700 and mid-size enterprises average US$687,700. When asked about the return they were getting on their tech investment, 60 per cent said it was good or excellent, but 40 per cent said “just OK” or were disappointed. They based their assessments on factors including time and cost savings, greater ability to get tasks done and staff and customer satisfaction.

When asked about their goals for improving their technology, the most-frequently mentioned was improving IT security, cited by 37 per cent. But in a separate question asking companies about their tech to-do lists, only mid-size businesses listed it as No. 1. Cybersecurity came in fifth for the tiniest businesses, and No. 3 for somewhat larger companies.

CONTRACTING SURVEY

It costs more money to do business with the U.S. government. That’s the finding of an American Express small business survey that showed companies spending an average of US$148,124 seeking federal contracts last year, up 15 per cent from the US$126,628 they spent in 2013.

Bidding activity by small businesses was up sharply from 2013. The number of prime contracting bids by small companies — in which they were the principal or sole contractor — rose to an average of nearly 18 per company from 5.5. The number of subcontracts rose to an average of nearly 11 from 3.6.

CONTRACTING BILLS PASS

Congress has passed a defence spending bill including legislation aimed at making it easier for small businesses to get federal contracts. Among other things, the bill requires federal agencies to review contracts with an eye toward giving small companies more opportunities.

Members of both houses have been campaigning for years for small businesses to get a larger fair of federal contracts. Contracting legislation has been a part of annual Pentagon spending bills the past few years.

The defence bill also included legislation to help small businesses prevent cyberattacks and a five-year spending authorization for the Small Business Innovation Research and Small Business Technology Transfer programs. Under these programs, companies can develop technology for the government, and in some cases, market it.