Digital News Asia’s Post

Q: Why do we emphasize so strongly that SME owners should adopt digitalization and make data-driven decisions? A: It is because business competition is INTENSE, and going digital can be a LIFELINE for SMEs Three key takeaways from the article on SME survival from World Economic Forum: 1.) Survival Struggle: 67% of small and medium-sized enterprises are fighting for survival, facing intense business pressures and technological challenges. 2.) Tech Adoption: Overcoming digital hurdles is crucial. SMEs that embrace technology can attract talent, improve efficiency, and enhance productivity. 3.) Economic Impact: Despite their significance, SMEs have seen a decline in GDP contribution, largely due to a lack of technological adoption. This is also our key investment strategy by adopting the "digital +" approach to partner with SME owners in their digitalization journey to unlock their business potentials! Chris Chan (EMBA, CPA), Steven Chong, Raikk Chan, Tracy Ko, ZB CAPITAL, Zubbily #datadriven #DigitalTransformation #SMEs #investmentstrategy

Recent research by Three Business indicates that tech-enabled SMEs could add £79 billion to the UK economy over the next year. Technology is clearly a key driver and enabler of growth for businesses. Despite this, their research also revealed a notable 42 per cent of SMEs worry that the complexities of adopting new technologies could hold back their growth. A further 55 per cent express concerns about the costs involved. Read more here. #investintechnology #accountantsbexhill #accountantshastings https://lnkd.in/eUDCSfAb

Amid ongoing challenges, more small and medium-sized enterprises (SMEs) in Australia are strategically investing in technology, infrastructure, and talent to adapt to an evolving economic landscape. #SmallBusinessLeaders #InsideSmallBusiness #business #smallbusinessowners #challenge #technology #infrastructure

Small and medium-sized businesses (SMEs) are the backbone of Australia's economy. A recent report found that Australian SMEs have evolved in significant ways over the past 10 years: https://lnkd.in/ghNN4s_6 Here are three key takeaways: 1️⃣ SMEs are leaner: the average SMEs today employ less staff than in 2014 and technology is the driver. 2️⃣ Fewer SMEs are in a business growth phase (39% in 2024 compared to 45% in 2014.) 3️⃣ 71% of SMEs will stick with reliable brokers and advisors who deliver actionable recommendations. ➡️ If you’re an SME that’s not growing as fast as you’d like to and you want an advisory team you can count on, reach out to Lucent Advisory: https://lnkd.in/gWMvcDgd

SMEs must embrace digital tools like Sage to drive growth and success. Read our latest report on unlocking SME potential and boosting the economy: https://lnkd.in/dG-rb-C6

Economies of scale refer to the cost advantages that a business can achieve by increasing its production scale. As a company produces more goods or services, the average cost per unit typically decreases. This reduction in cost per unit arises from several factors that contribute to greater efficiency and cost savings. Economies of scale can be classified into two main types: internal and external. Internal Economies of Scale These are cost savings that arise from within the company as it grows and increases its production capacity. Key sources include: 1. Technical Economies: • Specialization: Larger firms can afford to employ specialized labor and machinery, leading to more efficient production processes. • Advanced Technology: Investing in advanced technology and machinery can increase production efficiency and reduce per-unit costs. 2. Managerial Economies: • Specialized Management: Larger firms can hire specialized managers for different functions (e.g., finance, marketing, HR), leading to better decision-making and efficiency. 3. Financial Economies: • Lower Borrowing Costs: Larger firms often have better credit ratings and can borrow at lower interest rates. • Access to Capital Markets: They may have easier access to equity markets for raising capital. 4. Marketing Economies: • Bulk Buying: Larger firms can buy raw materials and inputs in bulk at discounted rates. • Advertising: The cost of advertising per unit can be lower for larger firms as they can spread the cost over a larger output. 5. Network Economies: • Logistics and Distribution: Larger firms can optimize their logistics and distribution networks, reducing transportation and warehousing costs. 6. Learning Curve: • Efficiency Gains: Over time, companies can become more efficient as they learn and improve their production processes. External Economies of Scale These are cost advantages that accrue to a firm due to external factors, often related to the industry’s overall growth or the economic environment. Key sources include: 1. Industry Growth: • Supplier Networks: As an industry grows, a network of specialized suppliers and service providers often develops, reducing costs for all firms in the industry. • Skilled Labor Pool: A growing industry may attract a skilled labor pool, reducing training and recruitment costs. 2. Infrastructure Development: • Improved Infrastructure: Development of industry-specific infrastructure, such as transportation networks and communication systems, can reduce costs. 3. Research and Development (R&D): • Shared Knowledge: Firms in a growing industry can benefit from shared R&D efforts and technological advancements, reducing individual R&D costs. 4. Government Policies: • Subsidies and Incentives: Governments may provide subsidies, tax incentives, or grants to support industry growth, reducing costs for firms.

Why Business Advisors Are Essential for SMEs in the Years Ahead As businesses face a complex landscape, the need for expert guidance has never been greater. Small and medium-sized enterprises (SMEs) are the backbone of the economy, but they are also susceptible to market volatility, changing regulations, and evolving technological trends. This is where business advisors come in, offering crucial support that helps businesses thrive despite challenges. The role of business advisors will be even more essential for SMEs. Navigating Economic Uncertainty The economic environment remains unpredictable. From inflationary pressures to supply chain disruptions, SMEs must be agile to survive. Business advisors can help businesses assess risks, identify opportunities, and develop strategies to safeguard their financial health. Whether it's managing cash flow, optimizing operations, or identifying cost-cutting measures, their insights allow companies to stay afloat and grow even in turbulent times. Embracing Technological Advancements The pace of technological change continues to accelerate. From artificial intelligence to automation, the tools available to businesses are evolving fast. Integrating these technologies can be overwhelming. Business advisors are crucial in helping SMEs navigate this digital transformation. They guide businesses through the adoption of new systems, from cloud solutions to AI-driven analytics, enabling companies to streamline operations, improve efficiency, and stay competitive. Sustainability and Compliance As environmental regulations tighten and consumers demand more sustainable practices, SMEs must adapt. Business advisors play a key role in helping businesses meet sustainability goals while balancing profitability. By guiding SMEs on eco-friendly practices, such as reducing carbon footprints or implementing green initiatives, advisors ensure compliance with regulations while enhancing the company's reputation. Strategic Recovery and Growth Business advisors help SMEs craft strategic recovery plans, assess new market opportunities, and develop long-term growth strategies. By focusing on the evolving needs of customers and industry trends, advisors help businesses stay ahead of the curve. Business advisors are vital to the success of SMEs, providing expertise that helps them navigate an increasingly challenging business environment. Whether it's managing the financial risks of uncertain economic conditions, guiding digital transformation through new technologies like AI and automation, or helping businesses implement sustainable practices, advisors play an essential role in keeping SMEs competitive. They also support strategic recovery and growth by identifying opportunities and ensuring businesses stay aligned with shifting market trends. The evolving needs of businesses make advisors indispensable partners in long-term success, offering tailored strategies that foster resilience, innovation, and profitability

Inflation remains the number one challenge facing small businesses. However, there’s a powerful solution emerging: smart technology adoption. According to recent research from the U.S. Chamber of Commerce, an impressive 79% of small businesses report that technology has helped them avoid raising prices for consumers. Success isn’t just about adopting any technology—it’s about implementing the right solutions at the right time. As businesses navigate this inflationary environment, they’re discovering that strategic technology investment can create a robust shield against rising costs. The data is clear: businesses that embrace comprehensive digital solutions are not just surviving—they’re maintaining their competitive edge without passing costs to consumers.

Interesting report on Core constraints to business growth plans as below 1. 53% believes ‘finding the right people to execute the business plan 2. 17% believes ‘ability to differentiate from the competition’ 3. 17% believes capital to fund growth 4. 12% believes ‘finding the right growth opportunity' 5. 2% believes ‘the cost or complexity of implementing technology solutions’ #sme #smeireland #smallmediumbusiness #smallbusiness #mediumbusiness

💥New Blog Alert!💥 Discover how Irish SMEs can gain a competitive edge in today's digital age! 🌐✨ Our latest blog post, "Gain Competitive Advantage: Discover the Power of Digital Transformation for Irish SMEs," dives into the transformative power of new technologies and the increasing digitisation of business operations. 🚀📊 Curious about how digital transformation can revolutionise your business? Click the link below and get the insider scoop! 🔍👇 https://lnkd.in/erFHWg2u 💬 Share your thoughts and join the conversation! Every click brings you one step closer to mastering digital dominance! 💪💡 #DigitalTransformation #IrishBusinesses #SME #TechInnovation #CompetitiveAdvantage