IT-enabled small and medium-sized enterprises (SMEs) increase revenues 15 percentage points faster and create jobs almost twice as fast as other SMEs, a new Boston Consulting Group (BCG) study finds.
Leaders in the adoption of the latest information technologies among small and medium-sized enterprises (SMEs) far outperform their peers in the marketplace, according to new research by The Boston Consulting Group (BCG).
Technology leaders increased their annual revenues 15 percentage points faster than companies with lower levels of technology adoption and created jobs almost twice as fast as other small businesses from 2010 through 2012.
The BCG report, “Ahead of the Curve: Lessons on Technology and Growth from Small Business Leaders,” commissioned by Microsoft, also found that if more SMEs could achieve the growth rates of technology leaders, there is potential for SME revenue to grow by a combined $770 billion in the five primary countries surveyed: the US, Germany, China, India, and Brazil.
This rate of growth would add some 6.2 million new jobs in those countries alone, the report added.
“Throughout the world, SMEs play a vital role in their economies, often acting as the primary drivers of job and economic growth,” said David Michael, a BCG Senior Partner and a co-author of the report. “There’s a big opportunity for both SMEs and policymakers around the world. More tech leaders would also help lead to more vibrant economies because leaders outperform in innovation.”
Overall, the survey found that the outperforming subset of SMEs stayed ahead of mainstream IT adoption, riding new waves of advancement to improve efficiency, connect with new customers and markets, and compete with much larger players. These companies employ the full range of available tools—from productivity software to Internet connectivity to cloud-based services.