Jessica O'ConnorCybersecurity concerns and workforce knowledge gaps were among the biggest barriers preventing UK small and medium-sized businesses (SMEs) from fully embracing digital transformation, according to research from digital ISO consultancy platform Be Certified.
The SME Digitalisation Report found that while more than half of SMEs (55%) see digitalising their processes as a key growth priority for 2026, a vast majority (93%) held concerns about implementing digital changes.
The survey of 700 SME owners across sectors including retail, IT and education explored how businesses plan to advance digitalisation over the coming year and the challenges they face.
Cybersecurity emerged as the top concern, cited by 42% of respondents.
The findings come amid a reported 50% rise in “highly significant” cyber attack incidents over the past year, according to the National Cyber Security Centre, alongside recent high-profile attacks on companies including Jaguar Land Rover and Marks & Spencer.
Other barriers include the pace of technological change, with 41% of SMEs saying they struggle to keep up with the rapidly evolving digital landscape, while 38% identified knowledge gaps within their workforce.
Budget pressures and training shortages were also limiting progress.
Nearly a third of businesses (28%) said limited budgets for digital tools are holding them back, while 24% reported lacking the resources to provide adequate workforce training.
To help manage the costs of digital transformation, many SMEs have called for greater government support.
The most requested measures were grants or subsidies for purchasing digital platforms and software (18%) and subsidised training programmes (18%).
Tax incentives for investing in digital tools were cited by 17% of respondents, while 15% highlighted financial support for hiring staff and 14% called for low-interest financing schemes.
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.”
