According to the latest Lloyds Bank Business and Charity Index UK, businesses are missing out on £85 billion each year due to a lack of digital capability.
Despite 41 per cent of sole traders having a low digital capability, UK business is set to enter a new digital age.
The report highlights that 99 per cent of small and medium-sized enterprises (SMEs) and charities have now moved online, up from 92 per cent and 76 per cent respectively since the report was first commissioned in 2014.
Organisations are increasingly recognising how important digital is to success. The report shows that the number of SMEs seeing digital as relevant has increased by 31 per cent to 71 per cent and for charities, it has risen from 24 per cent to 67 per cent over the same period.
More than £100,000 in additional annual turnover could be generated for businesses who embrace advanced technologies including cloud IT, online accounting software and digital training tools.
Additionally, the report indicates that 2.5 million businesses save time through digital; this has more than doubled since 2014.
Nick Williams, Managing Director of Commercial and Business Banking Transformation at Lloyds Banking Group, said: “Businesses and charities are seeing that moving online is not only helping increase revenue, but it is also improving productivity levels.
“The potential £85 billion in revenue that SMEs could generate demonstrates the tangible impact of advancing digital capability and skills.
“The improving digital capability of businesses has led to an increased awareness of potential cyber threats and we can see organisations turning their attention to protecting themselves online.”
Mr Williams added: “As part of our Helping Britain Prosper Plan, we are working closely with the Government’s digital skills partnership to improve the UK’s digital capability, and we’re committed to training 1.8 million individuals, SMEs and charities on digital skills including internet banking, by 2020.”