Less than half (46 per cent) of small and medium-sized enterprises (SMEs) in the UK feel that they have the upper hand in applying the latest technology, according to American Express.

A global study of senior executives at 3,000 SMEs conducted by Oxford Economics for American Express also found that more than two thirds (64 per cent) felt threatened by the burden of changes in the regulatory and political landscape, given rising uncertainty over Brexit.

Cyber and data security was an emerging threat for the country’s SMEs, with 31 per cent ranking it in their top three external business threats this year, compared to only 11 per cent last year.

While not reliant on them now, over one in five UK SMEs plan to use robotics (21 per cent), as well as machine learning, smart algorithms and artificial intelligence (22 per cent) over the next three years, the study found.

When it came to the most significant business challenge SMEs are facing, applying the latest technology to their business functions was the number one task they intend to tackle over the next three years, with over two thirds (65 per cent) recognising its potential to drive business opportunities.

However, whilst businesses are preparing to face rising tides of uncertainty linked to Brexit and technological change, 60 per cent of the executives asked said they believed their business was more likely to be a disruptor than to be disrupted – an increase in confidence from last year.

This buoyant approach was also reflected in SMEs’ appetite for risk, with 70 per cent saying they would be willing to take risks, placing them above the global average in terms of risk/reward appetite.

In a similar vein, UK SMEs are gearing up to use technology to drive productivity gains, with 66 per cent saying they have plans to implement cost-saving programs and 59 per cent saying that they will improve management decision making in the coming years.

Jose Carvalho, executive vice president of global commercial services at American Express, said: “Despite operating in turbulent times, and facing fresh challenges for the year ahead, the optimism and focused resilience shown by the country’s SMEs is encouraging.”

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