The UK’s small businesses are falling behind the competition as technology progresses, according to a report by the Centre for Future Studies, an independent forecasting think-tank.

By failing to recognise the need for the effective management and use of their IT and Communications (IT&C) many small businesses are unable to meet customer demands and expectations.

Owner-managers are unable to implement solutions on their own, because they do not have the IT management skills to fully recognise the problem or the cure.

The report shows that SMEs do understand the importance that technology plays in their business, but they are having difficulty managing it and ultimately identifying where their business is falling down.

The problem stems from owner-managers being specialists in their industry, but not in IT management, leaving them unable to adequately assess their own and the competency of their employees to use their IT&C hardware and applications.

The majority of owner-managers do not feel that they are missing the necessary expertise. It found 79% do not think their business lacks IT skills and only 9% are dissatisfied with the technical skills of their staff.

It found SMEs lack a single and trusted source to advise them or provide an extension to their in-house team to manage through change and crisis.