Top 8 Technology Challenges For Small Businesses

Every organization aims to overcome its challenges. Businesses experience challenges like changes in market patterns, competition, and rising customer demands. Technological advancements have also brought about their share of challenges.

Small businesses must offer unique services, enhance operational efficiency, and improve customer relations to survive. However, they can collapse without the appropriate technology or utilizing the available technology.

Installing update

Technology will continue to advance, which may pose a challenge to small businesses. The outline below highlights some of these technological challenges small enterprises face:

  1. Cyber Security Threats

Data security is one of the most significant challenges experienced by small businesses. Data breaches can affect the competitive advantage and financial health of an organization.

Cybercriminals continue to create new strategies that can cause havoc to businesses. This makes it difficult for entrepreneurs of small businesses to ensure the safety of their financial data, customer information, IP data, and other crucial data, especially when using multiple apps or adopting new technology. Moreover, small businesses follow different data security requirements, making cybersecurity more challenging.

You can use known technological solutions like cloud technology which stores data and secures information through access controls, virtual private servers, and advanced firewalls. You can contact experts like Exigent’s team to help secure your data, protecting your business from cyber-attacks.

  1. Data Backup Challenges

Most small business owners face issues with data backup. Hard drives can be damaged, or all data can be lost from floods, earthquakes, fires, an outage, or any other data disaster. Crises like these can tell you how crucial it is to have a reliable data backup and a recovery plan. Having them in place when these events occur will help eliminate the loss and cost of retrieving them.

You can backup your data online in a cloud server and offline on portable devices, ensuring you have a place to retrieve it in case of a crisis. Storing your portable devices off-site can further secure data loss during a disaster. An IT company in Edmonton can facilitate remote and on-site support, assisting your small business in the data backup process.

  1. IT Cost Concerns

You’ll likely have various technological expenses during regular business operations, like upgrading outdated hardware, maintaining IT teams and software, adopting new solutions, and more. These costs can often be overwhelming for small businesses, especially if they’re working on a platform that doesn’t support centralized IT management and on a restricted budget. Most small businesses also tend to invest in technology platforms that aren’t 100% effective for their business, thus paying more than the benefits they receive.

You can overcome this challenge by working with an outsourced IT team. They can help you eliminate unnecessary costs and improve your IT systems. Doing this can enable you to appropriately plan for your IT budget because most outsourced teams work for a fixed monthly fee.

  1. Easy Accessibility

Another reason small businesses are reluctant to adapt to new technology is the lack of accessibility. For example, managing remote work can be challenging for small businesses due to difficulty tracking productivity and work progress. Tools or software that have specific conditions on accessibility can limit the business’s ability to benefit and use it freely. Thus, you need to choose the proper software to ensure it provides secure access to productivity tools, data, dashboards, and performance metrics.

  1. Adopting New Technology

Technology changes continually and presenting them to any business for adoption takes time. This is more likely for small businesses with unskilled IT teams, less time, and fewer resources to support them. Adopting new technology is an essential focus for any small business as it can put them in a better position to compete in the market.

You can invest in user-friendly technology that is easy to navigate to help with your workflow. Work with a tech consultant or a partner to help your business through the transition, or read more about platforms and service providers that can empower your workforce and existing systems.

Data backup

  1. Choosing The Right Software

Choosing the appropriate software might be challenging due to the availability of many vendors who sell different software with similar features. The wide variety of software on the market can also make it hard for these small businesses to select the right one, prompting them to adopt multiple tools, as finding all one needs in one platform can be hard.

Thoroughly studying your business needs and knowing each software’s benefits is crucial before settling on a specific one. Choosing software randomly to survive in the competitive work environment can lead to significant losses. Thus, you must select software that meets your tech capabilities and business needs, satisfies your tech needs in one platform, and quickly fits into your business environment. Knowing how to pick a software developer can also help you choose the right software.

  1. Tracking Updates And Integrations

Most IT tools have subscriptions that require regular updates to maintain their effectiveness. Businesses often use multiple tools to facilitate smooth business operations. Thus, integrating or upgrading your systems to new software might be unsuccessful as the upgrades may be incompatible with your systems or take longer than expected to upgrade. Moreover, tracking subscriptions, integrations, and updates can be hectic, affecting the entire business workflow.

Therefore, investing in a unified solution that supports multiple functionalities or features is best. When you have everything under one platform, managing your integrations and updates will be easier, avoiding these minor drawbacks.

  1. Poor Advisory

Cost pressures can make small businesses lack an IT advisory panel or specialist within their workforce. Without an appropriate expert council, they might fail to evaluate or select relevant technology solutions to help them tackle their prevailing issues. The fear of escalating budgets eliminates the need for small business owners to get a consulting or advisory partner.

Regardless of the business size, a tech advisory partner is a significant asset. However, if you can’t manage the costs of hiring one, you can adopt a technology that incorporates tech support. You can also invest in tools with fewer implementation complications, simpler IT management, and quick setup processes.


Technology can make it difficult for small businesses to keep up. However, investing in the right technology can help your business succeed. Deploying new technology can be challenging, but properly strategizing your moves can help your business toward success.

Have a Look at These Articles Too

Published on April 13, 2023 by Adnan Mujic; modified on February 2, 2024. Filed under: , , , .

I am a committed and seasoned content creator with expertise in the realms of technology, marketing, and WordPress. My initial foray into the world of WordPress occurred during my time at WebFactory Ltd, and my involvement in this field continues to grow. Armed with a solid background in electrical engineering and IT, coupled with a fervor for making technology accessible to the masses, my goal is to connect intricate technical ideas with approachable and captivating content.

Leave a Reply