We have more technology at our disposal than ever before. Yet, with all the good it can do for us in business, technology also has the ability to slow down progress, hinder growth, and even create major setbacks if not chosen or implemented correctly.
When it comes to SMBs and IT, in particular, these are the most prevalent challenges we’re seeing today:
6 of the Top IT Challenges for SMBs
Smart investments in technology can help your small or medium-sized business remain competitive, run more efficiently, and broaden your profit margins. If it doesn’t currently feel that way, then one or more of these common IT obstacles could be standing in your way:
1. The Rising Cost of… Everything
Financially speaking, things are tough right now for many people on a professional level. Small business owners, in particular, are being hit hard.
A U.S. Chamber of Commerce survey of small business owners found that:
- 75% see significant impacts on their business due to the rising cost of things.
- 46% say that inflation is currently their biggest business challenge.
- 34% feel like the price of services and goods are the main thing keeping them from expanding.
While an unstable economy is creating a lot of stress for SMBs, the survey found that many business owners are still prioritizing technology investments to keep things moving forward.
For instance, 60% are prioritizing investments in software, 36% in AI, 32% in data management and analytics, and 27% in cybersecurity.
2. Hiring IT Support
The cost of IT support is something else that keeps small business owners up at night. According to the Chamber of Commerce survey, 14% of business owners say that talent acquisition is a major concern.
It’s not just finding the right person for the role. It’s the cost to acquire that talent, too.
According to U.S. News, the median annual salary for an IT manager in 2024 was $171,200 or about $82 an hour. On the lower end of the spectrum, IT managers were paid $134,350 a year and on the higher end $216,200.
Without an IT pro to support your organization, too many things can go wrong with your tech stack. At the same time, many SMBs don’t need a full-time IT manager — especially one with that high of a salary. So how do small businesses get around this obstacle? Some may go the DIY approach, choosing to manage what they can internally. Others look to outsource.
3. Technology-driven Business Disruption
New technologies often lead to more opportunities for your business. The only thing is that you can’t just set up a new network, VoIP system, or cloud solutions and then expect things to go on as usual.
When new technologies are integrated with your stack, you can expect a certain level of disruption within your business. For example:
- When moving away from legacy systems, data needs to be safely migrated.
- Employees need to be onboarded and trained on new systems.
- Internal workflows have to be reconfigured to work with the new tech.
- If your frontend operation is going to be down, changes and delays need to be communicated to customers.
You’ll also probably deal with resistance from some of your team. Over time, they’ll understand and appreciate the value of all this digital transformation. In the meantime, you can expect to receive some pushback.
4. Increasing Cyberattacks on SMBs
A recent Microsoft Security report pulled together the results of a survey of 2,000 IT security product decisionmakers in the U.S. and UK.
Although 94% of those surveyed understand how crucial cybersecurity is for their businesses, one in three have suffered a security breach. 90% of them say that cyber threats are becoming one of their biggest challenges.
On average, an SMB has to pay $254,445 per attack. The most expensive of attacks on an SMB cost the company $7 million.
The severity and length of the attack will impact how expensive it ends up being. Keep in mind that it’s not just the investigation and recovery efforts that will costs you money after a security breach. Lost customers, missed opportunities, damaged brand reputation, and fines are part of the overall cost, too.
5. Remote Workforce Data Management
A Gallup poll from 2026 reports the following breakdowns of employee work site arrangements:
- 22% work on site
52% are hybrid
26% are exclusively remote
Enabling employees to work remotely has its advantages.
To start, you can greatly reduce the cost of your physical office space and the related overhead. Also, there are many who suggest that working remotely is more conducive to productivity. What’s more, by opening your business up to remote work arrangements, you can tap into a global workforce instead of being limited to hiring local staff.
But remote work does come with some drawbacks, especially when it comes to data security.
According to the Microsoft Security survey, this growing trend towards remote work has created a big challenge for SMBs. That’s why 74% are focused on mitigating data loss from personal devices and 68% are focused on securing remote data access.
6. AI Integration and Security
Artificial intelligence technologies aren’t the top priority for most SMBs at the moment. Only 36% of those surveyed by the U.S. Chamber of Commerce have set aside funds to invest in AI.
That said, those who are making AI an integral part of their businesses have some obstacles in their path to implementation and integration.
In the Microsoft Security report, 83% of SMBs were very concerned that a lack of employee training on AI usage could lead to the exposure of private company data.
As a result, 81% of business owners and IT managers have made data protection and security for AI a top priority.
While data “leaked” to an AI might not seem as serious as a cyberattack, it poses just as serious of a risk, especially for companies in highly regulated spaces like education and healthcare.
Right now, agentic and generative AI are relatively new. However, it won’t be long before lawsuits and fines are rolled out for businesses who have compromised confidentiality by giving these tools unfettered access to their data.
How SMBs Overcome These Technology Challenges
Despite how common these challenges are, your technology should be helping your business get ahead. If you feel as though your business is stagnating or falling behind because of your IT systems and support (or lack thereof), then it’s time for an objective evaluation.
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