// EXPERT COLUMN //

For small- and medium-sized enterprises, 2025 was a year of both promise and peril. While technology opened doors to new markets and efficiencies, the pace of change exposed vulnerabilities that many SMEs were ill-prepared to handle. As we move into 2026, the challenge is not simply to survive but to adapt boldly to a landscape that is shifting faster than ever.

Digital acceleration

SMEs continued their rapid embrace of digital tools in 2025, from cloudbased collaboration platforms to AI-driven analytics. This democratisation of technology allowed smaller firms to compete with larger rivals in ways previously unimaginable. Yet it also created new risks. Cybersecurity incidents surged among SMEs, with many falling victim to ransomware and phishing campaigns. Unlike multinationals, SMEs often lacked the resources to recover quickly.

Supply chain fragility

Global supply chain disruptions became a defining feature of 2025. SMEs, often reliant on a handful of suppliers, were disproportionately affected by delays, shortages and price volatility. The lesson here is diversification. Businesses that invested in multiple sourcing strategies or localised production were better able to weather the storm. In 2026, SMEs must think less about cost minimisation and more about risk management.

The regulatory squeeze

Ben Leitch – Digital Content Manager

Governments tightened compliance requirements across data protection, sustainability and financial reporting. For SMEs, this was a doubleedged sword: compliance demanded time and money, but it also created opportunities to differentiate. Firms that embraced transparency and sustainability found themselves more attractive to customers and investors.

Talent and wellbeing challenges

Labour shortages and rising employee expectations around flexibility and wellbeing hit SMEs hard. Larger firms could offer hybrid work models and wellness packages, while smaller businesses often struggled to keep pace. Yet SMEs that invested in culture – clear communication, flexible arrangements and genuine care – found themselves retaining talent more effectively. The lesson for 2026 is that people are not just a resource, they are the differentiator.

So, what are the priorities for SMEs in 2026:

• Resilience-first mindset: Build systems and processes that can absorb shocks, whether digital or physical

• Diversified supply chains: Spread risk across suppliers and geographies

• Compliance as opportunity: Use regulation to strengthen trust and credibility

• Culture as currency: Invest in people, wellbeing and flexibility to retain talent

2025 reminded SMEs that agility alone is not enough. Without resilience, agility becomes fragility. The future is about being smart – as 2026 unfolds, the winners will be those who combine adaptability with foresight. �

18 Intelligent SME. tech