The Lloyds Bank UK Business Digital Index measures the digital maturity of SMEs and charities in the UK. The Index is a new research study based on the analysis of Lloyds' customer data and a comprehensive survey of just under two thousand small businesses, charities, clubs and societies. It was created in association with Accenture, as part of our commitment as founder partners of Go ON UK - the UK's Digital Skills Alliance.
The Index has benchmarked how effectively SMEs and charities are capitalising on digital technologies, including their use of social media, online sales, digital advertising and level of basic online skills. Also the level of investment in digital infrastructure, training and use of advanced digital security techniques. It has identified many significant points and highlights some positives around the digital maturity of SMEs and charities in the UK, including:
- Almost 1.5m SMEs in the UK have a high degree of digital maturity, meaning they invest significantly in their digital infrastructure.
- There is a positive correlation between the most digitally mature SMEs and charities and those who have confidence in their own enterprise in the UK economy as a whole.
- Around two thirds of digitally mature businesses rate themselves as above or significantly above their performance expectations.
However, the research also identifies the following challenges:
- 29% of SMEs and charities believe being online isn't relevant for their business.
- Only 50% have a website and on the whole, those that do are only providing basic functionality.
- A third of businesses are without basic online skills and 75% don't invest any money in improving digital skills.
It is clear that digital technologies, tools and skills are being exploited by small businesses and charities alike but that nearly all could be doing more to realise the full potential benefits. This means thousands of UK businesses and charities could be jeopardising their future growth prospects because they don't see the benefits of digital technology.