Feeds

UK small.biz is bunch of IT cheapskates

Better things to spend money on

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Less than half (46 per cent) of Britain's small business owners and managers are planning to spend more than £1,000 on information technology in the next 12 months,

Even so, 70 per cent of these small businesses see investment in technology as a positive step and a “tool that can be harnessed to perhaps improve their working environment.”

Bibby Financial Services, which conducted the survey, said this disparity could be due to the fact that many owners and managers are worried about losing the personal touch with their customers and suppliers as well as keeping up to date with the latest technological developments.

Over a quarter (28 per cent) of owner managers stated they would much prefer to spend their money on improving their plant and machinery or capital equipment rather than invest in expensive new IT systems.

A further 22 per cent would prefer to spend money on a sales and marketing drive, while 17 per cent would prefer to give themselves and their staff a much-needed pay rise.

David Robertson, chief executive of Bibby Financial Services said the findings should strike fear in the hearts of the technology sector which was struggling to maintain sales in the current volatile economic climate.

“Too often in small businesses up and down the country, investing in IT is seen as a ‘necessary evil’ and is a grudge rather than an important step in improving business operations and processes.

“Often new computers or software packages are bought reluctantly without any real commitment to exploiting their capital investment to the full.

“The result is valuable resources and money going down the drain and a vicious circle being created in which all IT expenditure is considered wasteful – it is therefore vital it is carefully thought out and researched before the business parts with any hard-earned cash,” he said.

© Startups.co.uk is the biggest independent small business site in the UK. It has more than 2500 articles covering everything from taking on staff to dealing with VAT.

Related stories

Small.biz shuns IT recycling (mostly)
MS disses small.biz marketing efforts
UK.gov streams advice for Small.biz

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.