A national survey of owners, chief executives and managing directors of UK small and medium-sized businesses has shown that IT innovation is considered key to growth for over 80% of business owners.
The report by David Lewis Consultancy, on behalf of hosted application service firm Extrasys, also found that competition and rising costs were the two main challenges for SMEs in 2006.
Of those surveyed, 25% cited business continuity, risk and disaster recovery as the third most significant challenge.
The main factors influencing the implementation of technology solutions were overall cost (68%), customer service benefits (31%) and the ability to upgrade (30%).
The research found that small business owners were concerned about the security of their IT infrastructure, with 60% believing their existing infrastructure was not secure enough.