The Impact of Technology Adoption on Business Post-COVID: Challenges and Opportunities for Small Firms

1. Resistance to change – some business owners do not want things to change, even if this is a good thing.

2. Sunk costs – since they have already invested in their current solutions, the view is that the time, effort and resources expended would go to waste if a change is made.

3. Hassle factor – taking on new technology and the effort it takes can be seen as a hassle.

4. Satisficing – If they believe their current technology is working fine, they will not see a need for a new one.

5. Stuck in the present – although the long-term benefits of technology are evident, small business owners have more pressing matters to deal with and they cannot get past the up-front costs.

6. Seeing losses, not gains – the focus is solely on the length of time, and resources required to research and implement this new technology.

7. Avoid decision regret – small business owners worry if they are making the wrong decision and if this new technology could be bad for business in the end.

8. Only seeing known risk – small businesses are unable to bear the risks associated with change.

9. Ambiguity, uncertainty – there is a great deal of uncertainty regarding what will happen.

10. Relative judgement – there is also uncertainty with how to weigh the options and determine what is best for the business.

11. Information avoidance – there is so much information available that it becomes too much to handle and as a result it is avoided completely.

12. Choice paralysis – All of the choices become overwhelming.

FutureCIO Editors (2021) opined that the research further revealed that even after the pandemic forced businesses to implement digital solutions, only one in five small businesses consider themselves to be technology adopters, compared to nearly one in three who acknowledge they consistently put off investing in new technology. This is despite the significant and well-documented benefits of technology adoption.

According to the research, an “adoption gap” results from the behavioural barriers, including attitudes and beliefs about technology and change that are commonly held by small businesses worldwide.

These business owners think that despite the possibility of improved performance from new technology, their current solutions are adequate. When contemplating a shift, they concentrate on the threats and immediate losses. They find it difficult to deal with the large number of technological options to choose from, compare and comprehend.

Chief Customer Officer at Xero, Rachael Powell, proffered that deeper anxiety and concern about how complicated and expensive the change process might be are the biggest obstacles for small businesses when it comes to utilising the benefits of technology, rather than a lack of knowledge or options.

Although small business owners may be aware of the advantages, they are not implementing technology because the thought of doing so makes them feel extremely uneasy and even threatened.

The Small Business Association of Barbados (SBA) is the island’s non-profit representative body for micro, small and medium enterprises (MSMEs). Connect with the SBA: https://www.sba.bb/sba/