MOST small and medium-sized enterprises (SMEs) here do not spend anything on research & development, a survey has found. But really successful firms certainly do spend.
In the latest SME Development Survey, some 73 per cent of the 1,206 respondents said they did not invest in this area at all.
Another 18 per cent spent less than $100,000 on R&D, while only 3 per cent spent more than $600,000.
According to DP Info, SMEs in accelerating growth stage are investing more in R&D, while more than half of those in the moderate, mature and decline stages are not spending at all.
Only 38 per cent of the fast-growing SMEs are not spending on R&D, compared with 44 per cent of start-ups and 51 per cent of moderate-growth firms.
The study also found high costs and lack of staff capabilities as the top challenges that SMEs faced in adopting technologies.
Specifically, some 52 per cent of the respondents cited high cost as a major hindrance in technology adoption.
This is followed by more than 35 per cent and 19 per cent who cited the 'lack of staff capabilities' and 'funding support' as major concerns too.
The study allows respondents to list more than one concern.
In fact, the report noted that 20 per cent of SMEs have voiced their needs for training in information technology, suggesting the possible lack of staff capabilities in technology adoption.
Some 20 per cent indicated no difficulty, and this was especially true for firms in the finance and property sectors, the report adds.
Start-ups voiced similar concerns, with some 65 per cent worried about costs and 34 per cent about staff capabilities. In all, only 9 per cent had no problems with technology adoption.
Security awareness
Still, it is heartening to note that most SMEs are now practising a good degree of security awareness with 67 per cent having installed software security applications.
However, construction and food & beverage businesses did less in this area with percentages standing at 57 per cent and 53 per cent respectively. The report also found some 43 per cent of SMEs that have automated less than a quarter of their functions and processes, against some 26 per cent that automated most of their businesses.
Looking at the results positively, DP says a number of SMEs may have now recognised a greater potential for process automation.
However, "it may also imply that the types of business processes/functions that can be automated are limited among our SMEs".
At a sectoral level, "44 per cent of SMEs in the communications/transport/storage sector automate more than 50 per cent of their business processes," the report said.
The equivalent figures for retail and finance sectors stood at 39 per cent and 36 per cent respectively.
In contrast, SMEs in the construction and F&B businesses need to adopt more process automation, with only 15 per cent and 12 per cent reported automating more than half of their operations.
"In fact, there lies more opportunities for government agencies to promote greater automation among these business sectors."
Among the functions that are most commonly automated is operational processes,which was cited by 86 per cent of the firms.
This was followed by sales and distribution (56 per cent) and production (37 per cent).
