SMEs have more confidence in teh success of their company, with Portugal in third place in the series of countries surveyed in the most recent countries annual program “SBBO: small Business, Big Opportunity”, and Sage. This year, the study focuses on how SMEs are accelerating economic growth and how technology is changing businesses.
A operational efficiency is identified as a key factor for business confidence. This is reflected in the fact that almost half of SMEs, worldwide (45%) and in Portugal (44%) recorded income growth.
This increase in operational efficiency achieved thru important investments, especially in digital tools. The majority of SMEs worldwide (85%) and in Portugal (91%) consider that investing in digital technology is key to growing your companies, especially increasing revenue.
The most highlighted benefit is increased productivity which allows you to spend more time on creative or higher value tasks. In Portugal it is also very important to improve the customer experience 5% above the world average.
Portuguese SMEs are investing heavily i artificial intelligence (AI) and other digital technologies, with an 87% increase in investments over the past year. they are too 87% Portuguese SMEs to to state that investment in AI is fundamental to daily operations e 92% consider digital technologies to be key to increasing revenue when the global averages are 76% and 87% respectively.
In terms of challenges, 42% of SMEs say so the main obstacle highlighted is financial pressures that is, issues such as funding difficulties and increased operating costs. more than half (51%) indicated that their costs increased last year, and the forecast for next year is to continue to grow.
Among all the countries surveyed, Portuguese SMEs are the most likely to invest in digital technology more to overcome financial barriers, with 42% doing so, compared to 34% globally..
“This year’s results show that a very exciting situation for Portuguese SMEs that stand out worldwide for their confidence in the success of their companies, driven by a strong investment in digital technology”, said Ana Ribeiro, senior Sales Director at Sage Iberia in a statement.
How can SMEs overcome financial pressures while investing in digital conversion?
Interview with ana Ribeiro: Insights into Portuguese SMEs and Digital Investment
Q: Ana, thank you for joining us today. Your recent insights reveal that Portuguese SMEs have shown remarkable confidence in their success. What do you believe is driving this confidence?
A: Thank you for having me! The confidence among portuguese SMEs, which ranks third in the recent “SBBO: Small Business, Big Opportunity” survey, can largely be attributed too their investments in operational efficiency and digital technology. Nearly 91% of SMEs in Portugal recognize that investing in digital tools is essential for growth, especially in increasing revenue. This focus on operational efficiency has allowed many to record income growth, fostering a more optimistic outlook for future success.
Q: It’s fascinating to see how technology plays such a vital role. Can you elaborate on the kinds of digital technologies that SMEs are investing in?
A: Absolutely. One of the most notable shifts we’ve seen is in the investment in artificial intelligence (AI) and other digital tools. Over the past year, there’s been an 87% increase in investments specifically in AI technology, with 87% of Portuguese SMEs stating that such investments are essential to their daily operations. This contrasts with global averages, indicating a stronger commitment to improving productivity and operational efficiency. Beyond AI, businesses are also exploring various digital platforms to enhance customer experience, which has become even more critical in today’s competitive landscape.
Q: You mentioned that increased productivity is a key benefit of these investments. How does this productivity translate into tangible business outcomes for SMEs?
A: Increased productivity allows SMEs to allocate more time to creative and higher-value tasks, which ultimately leads to innovation and better service offerings. In Portugal, the emphasis placed on enhancing customer experience—5% higher than the global average—demonstrates that SMEs are not just focused on internal efficiency but are also keenly aware of the need to satisfy their customers. This dual focus not only helps retain existing clients but also attracts new ones, thus driving revenue growth.
Q: Despite these positive trends, you noted that financial pressures remain a important challenge. What are some strategies SMEs can employ to navigate these financial obstacles?
A: Financial pressures, such as funding difficulties and increasing operating costs, are indeed challenges for many SMEs. Over 42% of Portuguese SMEs cite this as a primary barrier. To combat these challenges, businesses should consider leveraging digital technologies to streamline operations and reduce costs. As a notable example, cloud-based solutions can lower IT expenses and improve accessibility. Additionally, seeking choice funding sources, such as grants or partnerships with larger firms, can provide the necessary capital for investment in growth initiatives. Networking and sharing best practices with other SMEs can also offer valuable insights into overcoming common hurdles.
Q: what advice would you give to SMEs that are hesitant about investing in digital technology?
A: My advice would be to start small and gradually scale their investments in digital technology. It’s crucial to identify specific areas where technology could considerably impact efficiency or customer satisfaction. Additionally, engaging with technology providers who understand the SME landscape can offer tailored solutions that fit their budget and needs. In today’s digital age, failing to embrace technology might mean missing out on key opportunities for growth and competitiveness. with the right investments, SMEs can not only overcome challenges but also thrive in an evolving marketplace.
Q: Thank you,Ana,for sharing your insights on this vital topic. It’s clear that the future is promising for Portuguese SMEs willing to adapt and evolve with technology.
A: Thank you for the conversation. It’s an exciting time for businesses, and I’m looking forward to seeing how Portuguese SMEs will continue to innovate and lead in the digital space.