UK Digital Small Business Index 2016

Lloyds Bank have recently published their UK Business Digital Index for 2016 as on Oct 19, 2016, which analyses small businesses and charities attitudes and behaviour towards digital technology skills and talent gap. In other words, the report demonstrated a few key problems that small businesses are facing.
The first alarming issue is that there is 1.44 million small businesses that struggle with basic digital skills. The second major issue the report outlines is the shockingly low number of small firms still without a website in 2016 and this is again because of digital talent skills. Overall, there is a high percentage of small businesses who are not exploiting the opportunity of overseas trade. Their chances of growth are currently being hindered by not operating digitally. This report proves that there is still a long way to go in terms of getting more small businesses to go digital in the UK, just because of lack of digital skills gap and not being online.


Saving money and time, becoming more efficient and growth are all additional benefits of going digital. Social media also plays a big role in keeping in touch with customers, and acts as an affordable route to do so. This may be why there has been a rise in the uptake of social media use to 11% since last year. Small businesses are likely seeing as this as an easier step to utilising digital for their business than getting a website. As a small business, having a website can be crucial to your turnover as it allows you to widen your geographic audience and ultimately, to create another sales.
The report states that currently “49% of small businesses do not have a website.” This is a drop of 2% from the results released in 2015. Not the direction we want to be moving in. Technology is an important aspect of any businesses success in 2016 and without a website you are reducing your chances of reaching out to new customers.
“Three in five of the most digital businesses have seen an increase in turnover of more than 20%.”
digital index
Reasons why small businesses are using digital – 2015/16 – Reducing Digital Talent Skills Gap

Basic Skills

Due to the huge growth of technology and the fact that over 3 billion people use the internet worldwide, it is increasingly important for small businesses to go digital. However, a major factor holding back small businesses is that they lack basic skills necessary to enable them to get online. Many small businesses believe that setting up digital platforms such as a website or an app is ‘not worth the investment of time’ or ‘is too expensive’ for their business to afford. This is highlighted by over “78% of sole traders investing no money in digital skills”. Digital skills include:

  • Being able to find, manage and store information digitally
  • Communicating and interacting with customers, suppliers and employees
  • Purchasing and selling goods online
  • Organising finances
  • Creating basic digital content, such as a website

Trading Overseas

There is a clear link between having digital maturity and organisational success. Furthermore, the increase of sales, profits and market share, growth in international markets should be enough to make a business want to trade overseas. It could be perhaps that the opportunity would be readily more seized if the barriers to exporting and selling were reduced.
The 2016 Business Digital Index has found that only “1 in 5 small businesses use digital to support their trade overseas”. If more businesses were to take up e-commerce and digital skills it would  can enable them to start exploiting the opportunity available. A greater embrace of digital skills by small business would also make payments for imports easier and for the barrier in time differences to be overcome in direct sales through your own website.

Breaking down the barriers

Skyline is committed to helping more UK businesses to do more with digital and helping creating the online. We’re helping to create the websites that businesses need to get noticed. We’re also now able to help business to sell using e-commerce for an affordable monthly fee and to design it so it looks great on any device. Therefore, helping businesses to reach a wider geographic and potentially enter new markets.
The cost issue that many small firms have with creating a website has been solved too, as we always tailor your website depending on which plan you decide on to suit your business. We’re also able to help you attract more customers by setting up your social media channels so that you can engage with your customers and potential clients. In a world where most people are spending vast amounts time on their smartphones and social media in particular – it’s essential that social should be utilised. Take a look at our social media service here.

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