How small and medium businesses left behind

Nowadays the 'AI' hypetrain is unstoppable while small and medium size businesses (SMBs) struggle to keep up with the pace of change in the digital world. Still lot of SMBs are not using technology or using at basic level, but enterprise companies are already using AI to automate processes and improve their services, which creating an even bigger gap between SMBs and enterprises.

Whose fault is it?

I could start to blame the education system or the government and maybe I should. There are not enough hands on training in schools and universities, and the governments are not doing enough to support SMBs in adopting new technologies. The European Union has some programs, but they are not enough and not well known.

Most of the people have smart phones and using the internet, but they are not understanding the fundamentals. How could we expect then SMBs to have a stable digital background while the majority of the people are not even able to use a computer?

How bad is the gap, right now?

The gap like I said getting bigger and bigger, while it is already huge. Because of OMISAI we are in contact with a lot of SMBs and we can see the difference between them and the enterprises. Many businesses are still using pen and paper to manager their operative tasks, like invoicing, inventory management, or even customer relationship management. Some of them are using basic software, but they are not integrated and not automated. This means that they have to do a lot of manual work, which is time consuming and error prone.

The enterprises on the other hand are using advanced software solutions, which are integrated and automated. They are using AI to improve their processes and services, which gives them a competitive advantage. This is creating an even bigger gap between SMBs and enterprises, which is not good for the economy as a whole. If not good for the economy, then not good for the people either. Usually the governments are forgetting the fact that SMBs are the backbone of almost everything. Sure, sure the big companies are paying more taxes (or not), providing more jobs (and layoffs), bringing more innovation which is true, we have many examples. I'm not saying the enterprises are evil, but they are not the only ones who should be supported.

What can be done?

There are a few things that can be done to help SMBs catch up with the pace of change in the digital world:

Education: We need to improve the education system and provide more hands-on training in schools and universities. This will help people understand the fundamentals of technology and how to use it effectively.
Government support: Governments should do more to support SMBs in adopting new technologies. This could include providing funding, training, and resources to help them get started.
Awareness: We need to raise awareness about the importance of technology for SMBs. This could include campaigns to educate people about the benefits of technology and how it can help businesses grow.
Collaboration: SMBs should collaborate with each other and with larger companies to share knowledge and resources. This could include partnerships, mentorship programs, and networking events.

The dark side of digitalization

Digitalization is not without its challenges. As businesses adopt new technologies, they also face new risks and threats. Cybersecurity is a major concern, as SMBs are often targeted by cybercriminals due to their perceived vulnerabilities or they simple left a door open. (Just check out the haveibeenpwned website for examples.) Additionally, the rapid pace of change can lead to confusion and resistance among employees, who may feel overwhelmed by the need to learn new skills and adapt to new systems.

These new digital solutions are helping businesses, their employees and their customers, ... and here comes the big "but": This could cause more layoffs. We already seeing this trend in many industries, where automation and AI are replacing human jobs. This is a complex issue, as while technology can improve efficiency and reduce costs, it can also lead to job losses and economic inequality.

How can we keep humans in the loop?

This should be the main topic in the next few months, years for SMBs, enterprises, governments, and educational institutions. We need to find ways to keep humans in the loop, while still taking advantage of the benefits of technology.

You can find many articles and discussions about humans require to feel valued, to have a purpose, and to be part of something (bigger). There a few talks about the universal basic income, which could help people transition to new jobs and careers as technology continues to evolve, but could also lead to dystopic world. We do not want that. As we all humans should start discussions together as community, because we are who is affected by these changes. From the business's perspective, try to rellocate human workforce to more valuable tasks, which are not easily automated or make impact for the business operations, employees and customers life and for the world.

The golden road

Just as with everything in life, there is a golden road, which is the balance between technology and humanity. This means that we need to find ways to use technology to improve our lives, while still keeping humans in the loop. Help, improve, enjoy the technology and reiterate on it. There are plenty of space to improve in almost every industry.

Conclusion

In conclusion, small and medium businesses are struggling to keep up with the pace of change in the digital world. This is creating a gap between them and enterprises, which is not good for the economy and for the people after all.

To help SMBs catch up, we need to improve education, provide government support, raise awareness, and encourage collaboration. We also need to address the challenges of digitalization, such as cybersecurity and job displacement, while finding ways to keep humans in the loop.

We need to find the golden road, which is the balance between technology and humanity.

If you think this article woke up some thoughts in you, please share it with your friends and colleagues. Start discussions about the future of work, technology, and humanity.

I wish you a lovely day and utopistic view of the future.