The Impact That Technology has on Small Business

Technology permeates every reach of business and society. Technology has advanced to such a massive degree that the technology we knew of some ten years ago is unrecognizable.

There are many benefits that small businesses can derive from using technology and ridding themselves of more antiquated methods.

This page will hope to offer a few ways that technology has impacted small businesses, both negatively and positively.

If you are a small business, you must research whether or not it is absolutely necessary to integrate technology into your business, as there is a chance it is completely unnecessary.

Technology has killed some industries but allowed others to thrive. Here are the impacts that technology has on small businesses explained.

The Advantages

Below you will find the advantages that technology can have on small businesses. As with everything in life, there are negatives and positives; the negatives you will find beneath this section.

Time-Saving

Technology has made it much easier for businesses to save themselves time. There are many solutions available now that previously were not, which makes it easier for businesses to function and mean that they or their staff do not need to gratuitously waste their time.

One such solution is payroll software, which is an easy software to use and can have many benefits, both financially and as far as time-saving is concerned.

Read:- 5+ Impact of Modern Technology on Education Sector

Payroll software, as an example, means that you do not need to outsource your payroll, nor do you need to waste the time of your human resources staff. 

Payroll software handles all of the duties that an entire department would have to handle.

It is only necessary to have somebody who checks on it intermittently and approves payments, but this can be done by any member of your human resources staff.

Technology has massively reduced the amount of time businesses waste and allows businesses to spend more time on areas that need improvement of their business that may be going ignored.

Read:- How to Make Better Use of Your Old Tech Gadgets

Money-Saving

Just as technology can save you time, it can save you money. You can make huge savings by investing in technology instead of more antiquated methods.

Citing the previous example, payroll software, if one were to employ an entire department dedicated to managing payroll, one would have to pay many salaries, whereas by using payroll software, you need only pay the monthly subscription for the software itself.

The savings that can be made by using technology is astronomical. Small businesses, providing it is necessary, should move toward technology to reduce their outgoing costs. There are some industries where it is unnecessary, however.

Ease

Above all, technology is undeniably very easy to use and put in place. With some positions, you would have required skilled workers that would have charged huge amounts for their salary, whereas now, you simply need software.

Technology has replaced the need for physical workers and businesses (especially small ones) can function much more cost-effectively and be largely self-sufficient. Technology continues to advance with every day that goes by.

Also read:- The Tech That Makes Remote Work Possible

The Disadvantages

While technology does have many benefits attributed to it, it can have a very negative impact on some small businesses.

The businesses that it usually has an impact on negatively are often specialized sectors where there is very little physical competition. Here are the disadvantages of technology and the impact they have on small businesses:

Lack of Business

As was mentioned in the introduction to this section, and above, technology has replaced a lot of small businesses and completely dominated their industries, meaning there is no longer a need to contract a business to do your work for you when you can have a software to do it for you.

Citing SEO software as an example, because of the advent of the aforesaid software, marketing companies are finding themselves unable to find work and are having to move into different sectors.

Overdependence

Many businesses have become very overdependent on technology, so much so that they cannot function as they once did when technology ceases to work, for example, as the result of their internet going down. Overdependence on technology is a very large problem and one that cannot be solved.

Competition

Not only is there a lack of business because of technology, but now there is extreme competition.

Small businesses are having to offer their services at massively reduced prices so that they can compete with the ever-changing and ever-evolving world of technology. 

Technology is, in a sense, killing the small business, but at the same time, aiding its growth.

Now you know the impact that technology is having on small businesses and the advantages and disadvantages associated with it. Technology is changing the world as we know it, and in some hundred-years, it will likely be completely unrecognizable.