The UK’s digital roadmap for SMEs

For the last year, I’ve had the privilege of working alongside some brilliant minds on the SME Digital Adoption Taskforce, contributing to the vital work it’s doing to accelerate technology adoption among UK small businesses. 

The SME Digital Adoption Taskforce has now published its much-anticipated full report, outlining its vision for a more digital-first future for the UK’s small- and medium-sized enterprises. The taskforce, a body originally established by a previous minister, has seen its crucial, instrumental work championed and continued by Gareth Thomas MP. Its ability to survive recent governmental changes is a testament to the widespread consensus on the transformative benefits of digital adoption..

The report lays down a sensible foundation, building on its interim recommendations to create a single point of accountability, make the most of AI, improve data access and establish standards for eInvoicing. These are all welcome and necessary steps. They reflect a fundamental truth: that digitalisation is absolutely critical for unlocking economic growth and productivity.

Keeping pace

Throughout this whole process, it’s been clear we need truly ambitious plans and small businesses would benefit from the recommendations going even further. We need to be bolder and learn from the global leaders who are setting a formidable pace in SME digitalisation.  

Again and again, we hear from small businesses that time, access to capital, and confidence are pressing issues that push digital transformation down the priority list. Many feel overwhelmed by choices and unsure where to begin. Unless the UK moves beyond foundational recommendations to decisive, well-funded action, there’s a real risk it could be outpaced by other countries. 

While this independent report commissioned by the Department for Business and Trade is welcome, its findings demand a faster and bolder response from the entire UK government. This responsibility cannot be confined to a single department; it must be integrated across Whitehall, driven by clear, top-down leadership.

My role at Xero, overseeing emerging markets, provides a unique vantage point on how different governments are tackling this very challenge. So what’s working elsewhere? 

• Singapore: A nation that consistently demonstrates what ambitious, state-backed support looks like. Its multi-faceted Go Digital programme offers up to 50% funding for SMEs to adopt pre-approved IT solutions through the Productivity Solutions Grant. This isn’t just advice; it’s direct financial muscle that de-risks investment for a small business owner.
• Malaysia: The Malaysia Digital Economy Corporation provides a clear, structured digital journey for small businesses. A cornerstone is the comprehensive Digital Maturity Assessment tool which gives businesses a tailored roadmap for improvement. This is complemented by a range of funding options and advisory services, creating a holistic ecosystem of support that guides businesses from one step to the next.
• Australia: The report’s call for eInvoicing standards is a move in the right direction, but  Australia’s mandatory eInvoicing regime using the Peppol network goes one step further. It’s a clear policy directive that drives widespread adoption, streamlines supply chains, and reduces payment times. This decisive approach creates a level playing field and accelerates the benefits for the entire economy.
• New Zealand: The Digital Boost programme is a masterclass in practical skills development. This free, government-funded online learning platform has already helped thousands of small businesses improve their digital literacy through accessible tutorials, workshops, and direct support. It proves the power of accessible, state-sponsored training in building the confidence and capabilities of entrepreneurs, a model the UK should closely examine.
• The United Arab Emirates (UAE): Here the government’s ambition is palpable. Initiatives like the Entrepreneurial Nation offer not just funding but also mentorship and access to a global network of partners. There’s a clear, top-down drive to create a world-leading digital economy, with SMEs placed at the very centre of that vision.

The common thread: urgency and action

The common thread that unites these diverse markets is a sense of urgency and a commitment to tangible, well-funded and often mandatory initiatives. The UK taskforce’s report has diagnosed the problem. Now, it needs to prescribe the cure.

The report needs to be seen as the starting line, not the finish. To help UK small businesses unlock the power of technology, we need the kind of bold, decisive action we’re seeing elsewhere. This includes:

• significant, easily accessible incentives that directly subsidise the cost of proven technology
• a national, government-backed digital skills programme that is free, high-quality, and accessible to every SME owner and their staff
• a clear and ambitious timeline for mandatory eInvoicing to unlock the productivity gains, as seen in markets like Australia
• an empowered government body with the authority and resources to drive this agenda forward with purpose and pace

Time and time again, we’ve seen what a vibrant and resilient SME community the UK has. These businesses are the engine of our economy and have bold ambitions to innovate and stay at the forefront of change. 

Let’s learn from the world’s best and give our small businesses the tools and support they need, not just to survive, but to thrive and lead in the global digital economy.