How SMEs Are Using Technology to Access New Markets

 Small-to-medium enterprises (SMEs) have become a cornerstone of developing and emerging markets, driving economic growth, providing jobs, and helping to reduce poverty.

However, these businesses often lack the necessary resources and technology to access new markets and grow their businesses. The coronavirus pandemic has had the greatest impact on SMEs, with many businesses forced to either shut down or close their doors for extended periods of time, thus, resulting in a drop in profits.  Fortunately, advancements in technology have enabled businesses to access new markets more effectively, increase their market share and achieve financial success.

 The internet has made it easier for SMEs to reach new customers and develop new business relationships. Many businesses are utilizing online marketplaces to increase their reach and make connections with buyers around the world.

Let’s dig deeper to learn how emerging technologies are transforming SMEs' growth roadmaps!

Why Is Digital Transformation Crucial for SMEs?

Digital transformation is all about harnessing the power of technology to streamline business operations, increase productivity, and most importantly, meet customers' expectations.  With digital transformation, small businesses can significantly improve various management operations, saving  time and money.

Not to mention, when SMEs undergo digital transformation, workforce training becomes more effective and efficient. Plus, businesses can track employees' performances, monitor progress, and prepare themselves for future challenges.

Here Are Some Ways SMEs Are Using Emerging Technologies

#1: Mobile Technology

Mobile technology allows SMEs to enter new markets. Smartphones have become an integral part of daily life, allowing many people the ability to access the internet from anywhere at any time. Because of this,  a significant number of businesses have begun  developing mobile apps that allow customers to purchase  their products and services with a single click . 

#2 Data Analytics

Data analytics is another useful tool for SMEs that are adopting emerging technologies. With data analytics, businesses can procure useful insights about customer preferences and trends. Moreover, with accurate data, businesses can target specific groups of qualified customers and capitalize on innovative trends. Businesses can also use data analytics to identify new markets as well as opportunities for expanding their growth.

#3 Cloud Computing

SMEs can procure real-time insights about the performance of their businesses, allowing them to make quick and informed decisions. Moreover, technology is helping SMEs access new markets by providing them with a range of tools and resources to help them succeed. For example, many online platforms provide SMEs with access to market research, so they can better understand the needs of their target customers.

#4: Digital Marketing

Digital marketing is an extremely important tool for SMEs seeking to access new markets.   When SMEs utilize  digital marketing services, they are able to  reach potential customers through online channels such as social media, email, and search engines.  Digital marketing enables businesses to target specific audiences and customize their advertisements  to reach the right customers. 

Therefore, with advancements in technology and SMEs adopting those technologies, they can access new markets more effectively, enabling them to increase market share, reduce costs, and gain financial success.

The Advantages of Using Technology in SMEs

#1: Higher Revenue

 The most important aspect of measuring business growth is revenue. Higher revenue indicates a greater likelihood of the company achieving growth. The use of digital transformation has had a huge impact on SMEs' growth, particularly  in terms of revenue. SMEs that  embraced technology were highly profitable. According to the KPMG report, online business revenue has increased by 19%, whereas offline business income has gone up by 10%. Therefore , the statistics clearly demonstrate that technology transformation is significantly beneficial for SMEs.

#2: Huge Customer Base

Another incredible benefit of SMEs embracing technology is gaining access to a large customer base. When the business is offline, it has a limited market reach. However, with an online presence, SMEs have the  incredible opportunity to improve and expand their businesses not only in the domestic market but also on a global scale. 

E-commerce platforms such as Amazon and Ebay have broadened geographical borders, enabling businesses to sell their products and services 24 hours a day, 7 days a week, 365 days a year. When SMEs focus on technology, it aids in enhancing the customer experience and indicates a correlation between revenue and customer experience.

#3: Reduce Operational Costs

 Advanced technology can reduce operational costs by 20–30%. When SMEs undergo  digital transformation, it helps decrease their overall expenditure by optimizing their marketing and operations.  IT tools and techniques, such as supply chain solutions, cloud-based software solutions, ERP, digital integrated production planning, and production floor control, have significantly improved the operational efficiency of SMEs.

Final Thoughts

Now that you understand how digital technology plays a pivotal role in taking SMEs to new heights, it might be time for you to reap its benefits. Watch this webinar presented by Sydonie Neysmith, the founder of Black Swan Consulting Inc., and hosted by the Nevada Women’s Business Center to learn more about using technology to access new markets.

If you're searching  for a consultant that can help you find the best technology for your business, look no further. Here at Black Swan Consulting Inc., our team of adept professionals are available to assist. Whether it is technical assistance, strategic planning, business development, financial planning, or government contracting, we specialize in them all. To learn more, get connected with us today!