Highlands has golden chance to lead UK in IT
In the latest in an occasional column, David Richardson, development manager of the Highlands and Islands branch of the Federation of Small Businesses, identifies developments in IT as the key to ensuring the region’s economy can look forward to a prosperous future
SMALL businesses might be the lifeblood of the UK’s economy but if they are to lead this country back to growth it is vital that unnecessary barriers are removed from their paths.
That is why the announcements about reducing employers’ National Insurance bills and streamlining regulation, made in the recent Queen’s Speech, are to be welcomed – providing that they go hand in hand with ongoing work to help small firms access finance.
However, small businesses are by definition private, independent enterprises, and they can do much to help themselves. This is particularly important where information technology (IT) is concerned.
Being able to communicate with customers and suppliers is fundamental to a business’s success and the advent of mobile phones and the internet has revolutionised communications – or digital connectivity as it is known.
Digital connectivity is recognised as a key driver of productivity, innovation and international trade and it is particularly important in “remoter, rural areas” like Caithness.
Physical remoteness from markets is already a major challenge for numerous small businesses operating in this region, and the growth in online shopping, while putting a strain on some, also represents opportunities for others.
IT really does narrow the gaps between businesses, suppliers and customers.
According to a recent Federation of Small Businesses (FSB) survey, four in five small Scottish firms believes that by investing in technology they can grow their businesses. The bad news is that a quarter fear that they have already fallen behind their competitors and Scottish businesses as a whole have spent 25 per cent less on new technologies than the UK average. Scotland is underperforming and there is no reason to believe that the situation is any different in the Highlands and Islands.
What can be done to help our businesses regain lost ground? Around half of the survey’s respondents would invest more in new technology if their areas had better local digital infrastructure, almost 30 per cent if they had better IT skills, and almost 30 per cent if they had better digital business support from agencies and government.
The good news is that HIE’s £146 million Next Generation Broadband programme is going to introduce fast-fibre broadband to every premises in the Highlands and Islands by 2020, and to the majority by 2016. There will also be improvements to satellite and mobile coverage.
Moreover, organisations like HIE, Business Gateway, E-Skills UK and Citizens Online are putting time and money into providing training and business support for small businesses at a local level, and the new online digital guide www.digitalhiguide.co.uk is a must see – for those who can access it.
Some extremely positive things are happening in the Highlands and Islands: the barriers to trade and investment are tumbling down and there really is a golden opportunity for Highlands and Islands businesses to lead the UK in IT. Now that would be quite something!