In order to keep up to date with the new competition, small businesses have always had to adapt and move with the times. In recent years, technological advancements have enabled small business owners to reach a wider audience and gain a more competitive foothold in the online market – but how does technology continue to impact the way that small businesses operate today?
Examples of disruptive technology: Disruptive technology has a transformative effect on processes, industries and markets – it changes the way that businesses and consumers interact, rendering previous models obsolete. In our era, the most notable example of disruptive innovation in business has been the growth of the internet and the widespread digitalisation of products and services; recent and emerging examples of disruptive tech in business include music and video streaming, virtual reality (VR), augmented reality (AR), artificial intelligence (AI), metaverse, instant messaging and social media, nanotechnology, 3D printing, conferencing and video-calls, digital payment processing and blockchain/cryptocurrencies.
How different businesses have been impacted: Along with the rise of cryptocurrencies and digital payment providers like PayPal, we’ve seen more small businesses providing their customers with a range of cashless electronic payment options – contactless payment cards have also altered the way that physical transactions are made in retail and service, while there has been an increasing reliance on AI (from self-service checkouts to CUI chatbots) when it comes to customer support. COVID-19 forced small businesses of every nature to adapt, leading to a new work-from-home culture and widely accepted hybrid working model enabled by conferencing software like Zoom, Skype and Microsoft Teams. Over the course of the pandemic, online food delivery businesses and online casinos and gaming sites saw unprecedented growth, and in other industries such as the auto industry it’s now easier to buy a car or book your MOT online or buy a car via the web than ever before.
Pros and cons of modern technology: The many benefits of technology for small businesses include increased productivity and user accessibility, a wider client base, streamlined processes, safer working conditions, reduced risk of accident or injury in the workplace, ease of communication across multiple countries, quick or instant payment processing, reduced need for staff/manpower, ease of data sharing and increased profits. It’s also easier to market your business on a budget using SEO marketing tactics from home and creating tailored social media campaigns.
The potential downsides of relying on tech when it comes to running a small business include increased emissions – while the use of technology does correlate with increased production and consumption, it may also contribute to increased pollution, depending on whether the tech in question is energy-efficient and eco-friendly; an overreliance on tech in our everyday lives may also lead to information overload and even burnout or depression, whereas sensitive data may also be vulnerable to theft or misuse; it’s also been said that the rising use of technology in business has led to rising unemployment amongst low-skilled workers.
