Scottish SMES failing to tap into potential of digital skills

● Survey finds that more than half lack their own website

Nearly half of Scotland’s small businesses lack the basic digital skills that could help them boost productivity and reduce costs, with about two thirds investing nothing in this area, a new study has found.

The Bank of Scotland Business Digital Index 2017 also discovered that 56 percent of Scottish SMES do not have their own website and the same percentage do not use social media. Barriers seen as holding them back from doing more online included concerns about security (23 per cent) and a lack of suitably trained staff ( 22 per cent).

Less than a third of businesses in Scotland said they felt they have the skills to prevent online fraud and scams. Additionally, 65 per cent said they weren’ t investing anything in digital skills, and about a third said they didn’t see being online as relevant to their business.

Those behind the index said it is the largest study of its kind into the digital capabilities of small businesses and charities, and said that for bu sinesses to have full basic digital skills, they need to demonstrate at least one of the following – managing information, transacting, comm uni cati ng online and using digital to problem- solve and create content like adverts and promotional material.

The report also found that across the UK, the most digitally capable organisations were twice as likely to report an increase in turnover compared to non- digital equivalents – and were also more productive. It also discovered that in Scotland ,71 percent of businesses reported saving time from being online and 56 per cent said they saved on costs.

Furthermore, nearly a fifth of small businesses north of the Border said trading overseas was one of the key benefits of being online.

Philip Grant, Lloyds Banking Group ambassador for Scotland and chair of the bank’s Scottish executive committee, said :“Digital technology continues to offer tremendous opportunities for Scotland’ s business community, increasing sales, improving productivity and opening up international markets. But to leverage this, it’s essential that businesses have the right skills.

“To help, we’re providing regular Digital Garages across the country to give small businesses access to free, expert advice, as part of our Helping Britain Pros per Plan. In Scotland, we currently have more than 4,900 digital champions – colleagues who are trained and empowered to help improve the basic digital skills of people and businesses within their local communities.”