Jessica O'ConnorCybersecurity risks and knowledge gaps are the biggest barriers preventing small and medium-sized enterprises (SMEs) from accelerating digital transformation, despite most viewing it as a priority for growth, according to research from Be Certified.
The SME Digitalisation Report, based on a survey of 700 UK SME owners across sectors including retail, IT and education, found that 55% see digitalising processes as a key objective for 2026.
However, 93% said they have concerns about implementing these changes.
Cybersecurity was identified as the most significant obstacle, cited by 42% of respondents, followed by difficulty keeping pace with rapid technological change (41%) and workforce knowledge gaps (38%).
Budget constraints and limited training resources were also highlighted, with 28% pointing to insufficient funds for digital tools and 24% citing lack of training capacity.
The findings come amid rising cyber threats, with the National Cyber Security Centre reporting a sharp increase in serious incidents over the past year.
Many SMEs said they would welcome greater government support to offset the costs of digital adoption.
Grants or subsidies for software and training were the most commonly requested measures (18% each), followed by tax incentives for digital investment (17%), funding for hiring staff (15%) and low-interest financing schemes (14%).
Agnes Sopel, lead auditor and ISO consultant at Be Certified, said: “Cyber security remains the largest barrier for SMEs in digitalising their operations.
“As cyber-attacks grow in frequency and sophistication, businesses must ensure they adopt the right security tools to protect their data and processes.
“For SMEs, it’s essential to implement multi-layered security measures in addition to employee training.
“A cybersecurity framework like ISO 27001 can also help SMEs formalise their security strategy and ensure that their data and systems are protected against emerging threats.”
