SMEs in Scotland are at risk of cybercrime through a lack of digital skills, according to new data.
The latest Bank of Scotland Business and Charity Index revealed there are now more Scottish businesses online than ever before but 41% of the country’s SMEs do not see cyber security as relevant.
A further 44% of Scottish SMEs lack basic digital skills. Yet, by embracing digital skills, UK businesses could generate an additional £85 billion in turnover.
Despite this, only 22% of Scottish businesses are gaining a transactional benefit from trading online domestically. This figure falls further when it comes to targeting international markets, with 13% of Scottish businesses using online channels to trade overseas. However, this was 5% higher than the rest of the UK. The report also found that only 8% of Scottish SMEs use digital channels to search for and discover growth opportunities.
Over the last five years, the digital capability score for SMEs has increased by 14 points to 59, higher than the UK average of 56.
Businesses across the UK embracing advanced technologies including cloud IT, online accounting software and digital training tools could generate more than £100,000 in additional annual turnover than those who have none.
The benefits can go beyond finances too, with 2.5 million businesses also saving time through digital, more than twice as many compared to 2014. SMEs and charities with advanced digital capabilities are able to save a day a week, showing that the benefits of digital go beyond the bottom line.
Philip Grant, chair of the Scottish executive committee at Lloyds Banking Group, said: “Scotland’s digital technology sector is forecast to grow twice as fast as the Scottish economy overall in the years to 2024. Our findings show that SMEs are capitalising on this momentum as more than half [56%] have full basic digital skills, an increase of 21% compared to figures reported
in 2015.
“There is still more that can be done to further upskill and build confidence in using digital technologies that will create opportunities to drive productivity and boost revenue. At Lloyds Banking Group we have over 4000 specially trained digital champions across Scotland. Over the coming
12 months we will continue to provide free to access training events for SMEs to help them close the digital skills gap.”
One business owner who has grown in digital confidence, capitalising on digital platforms to build revenue is the founder of
The Scottish Fruit Company,
Danya Caceres.
Inspired by the constant shift in buying habits from retailers, and to further grow the brand, The Scottish Fruit Company is now working towards an e-commerce, Shopify platform to extend sales online.
This will mean the business will be able to extend its opening hours, enabling customers to purchase at any time of the day. It is hoped it will also help to support a quicker payment process.
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