Cybersecurity fears and skills gaps slowing small business digital transformation, survey finds

Cybersecurity 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.