Bizdirect logo
Tuesday, 28 March 2017
Cloud for SMEs and Startups
article written by bizdirect
Cloud for SMEs and Startups. Important differences in ICT adoption and usage between large and small firms exist, with SMEs and startups facing several barriers to adopting ICTs and digital technologies in their operational activities, in particular in having the resources to acquire the necessary complementary knowledge-based assets, such as organizational and human capital.

It is essential to help promote the adoption of these digital technologies because they can help overcome some of the traditional barriers, including the often high, upfront sunk costs of these investments, and allow them to switch more rapidly from one technology to another to avoid being locked in. SMEs and startups have many potential benefits that they can draw from digital technologies, for example:

  • Better access to skills and talent: Entrepreneurs face significant challenges in finding and affording qualified workers, but better job recruitment sites, outsourcing, and online task hiring can make it easier to find people with the appropriate skills.

  • Greater access to markets: The Internet allows firms to access markets all over the world at relatively low cost, enabling them to reach scale. Some SMEs and startups even manage to internationalize their activities thanks to better access to digital technologies, including the Internet and mobile telecommunications. There is even some evidence on the emergence of so-called “micro-multinationals”, i.e. small and young firms that are born global.

  • More extensive access to financing: The Internet is an increasingly important source of financing for firms. Various types of online crowdfunding have emerged over the past few years and offer new opportunities for entrepreneurs to obtain funding. Moreover, digital intangible assets (e.g. IP) can sometimes also be used as collateral by firms, facilitating their access to finance.

  • Better collaboration and communication: The Internet also provides extensive opportunities for SMEs and startups to collaborate with others in ways that weren’t possible before due to a lack of time, resources, or connections. This includes collaboration among entrepreneurs via solutions such as incubators, research clusters, and online tools. It also facilitates their participation in global value chains.

  • Greater access to technology and applications: Through Cloud services, the Internet also provides them with access to a wide range of technologies and applications, including big data analytics, helping firms to solve problems at a much lower cost than before.

  • More extensive product development: Crowdsourcing via the Internet provides a way for SMEs and startups to design and develop products, and work around traditional barriers to expensive research and development.

  • Reductions in red tape: More indirectly, the administrative burden generated by governments for starting and running companies can be significant, but online government portals for information on the business creation and registration can help lower the burden on SMEs and startups.

The ability of SMEs and startups to swiftly adopt new technologies, to learn by doing, innovate, and optimize their production, is constrained by their small scale, limiting their ability to reap the benefits of the digital economy. It is essential to foster the use of more sophisticated digital technologies, especially cloud computing, which allows smaller firms to overcome some of the barriers associated with the high-fixed costs of ICT investment.

Interested in taking advantage of Cloud computing, data analytics, and the Internet of Things?


Bizdirect Cookie Policy

Bizdirect website uses data gathering elements called cookies, that aim to maintain the correct functioning of the website, content and advertising customisation, provide social media functionalities, as well as a complete traffic analysis with the main goal of optimising your experience.

Know more about Bizdirect and the way we process your data, reading our Privacy Policy.
Cookie management
Bellow we show you the groups of cookies we gather, which you should choose according to your preferences. You can change or remove your cookies permissions at any moment.

Used for storing each relevant current session configuration, namely, your language preferences.

Used for measuring the speed performance of the website and for collecting information related to which pages have more or fewer visits in order to help improve content for all website users in general.

Used for collecting information regarding exactly through which advertising campaign the user came from and which content the user prefers.

Know more about Bizdirect and the way we process your data, reading our Privacy Policy.
Google Analytics Alternative