Tech Challenges Facing Small Businesses in 2025 (And How to Solve Them)

As we approach 2025, new digital tools and challenges are emerging that will affect how businesses across the UK and worldwide will work.

This guide looks at what’s coming. We’ll cover the changing face of cybersecurity, the ongoing struggle to find technology and IT staff, and how remote work continues to reshape business operations. We’ll also examine what new AI tools might mean for your day-to-day work.

Let’s explore what’s on the horizon and how you can position your business to capitalise on the coming changes, trends, and transitions. 

Cybersecurity: The Never-Ending Battle

Data breaches jumped 72% in 2023 alone, and by 2025, experts predict 87% of businesses will face at least one security breach. 

That regularly results in losses of £1 million or more for SMEs. A breach can also damage your reputation and customer trust, which can be even harder to recover from. Many SMBs go out of business as a result. 

So, what can you do about it?

1. Train your team: Most breaches happen because someone clicked the wrong link or used a weak password. Regular training can help prevent these slip-ups, turning your team from a weakness into a strength.
2. Consider calling in the experts: If tech isn’t your strong suit, consider partnering with a managed security service provider (MSSP) like us at Mustard IT. We can monitor your systems 24/7, often at a fraction of the cost of hiring in-house security experts.
3. Update, update, update: Keep your systems patched and up-to-date. It’s boring, but it works. To make life easier, set up automatic updates where possible.
4. Implement multi-factor authentication (MFA): This extra layer of security can make a huge difference. Even if someone gets hold of a password, they’ll need another form of verification to access your systems.
5. Back up your data: Regularly back up your important data and test your restore process. If the worst happens, you’ll be glad you did.

Cybersecurity isn’t a one-and-done deal. It’s an ongoing process that needs regular attention and investment. But when you consider the potential cost of a breach, it’s an investment worth making.

The Great Tech Skills Drought

Finding people who know their way around the latest tech is already challenging. 

Right now, 80% of small businesses are struggling to fill roles, particularly in tech and IT, and the situation is only going to get worse. Plus, how can small businesses compete with big tech companies offering sky-high salaries and fancy perks?

Here’s what you can try:

1. Grow your own talent: Look into apprenticeship schemes or partner with local colleges. It might take longer, but you’ll end up with staff who know your business. Plus, you can shape their skills to fit your specific needs.
2. Upskill your current team: Your best tech expert might already be on your payroll – they just need some training. Invest in online courses, workshops, or even sponsor part-time degrees. It’s often cheaper than hiring new staff and can boost morale, too.
3. Think outside the box: Remote work has opened up a whole new talent pool. Could you hire someone from the other end of the country? Or even overseas? Just make sure you’re clear on the legal implications of hiring abroad.
4. Consider outsourcing: It might be worth bringing in outside help rather than trying to hire full-time for specialised tasks. This can be especially useful for one-off projects or areas where you need expert knowledge but not daily.

Further, keep in mind that the tech skills shortage isn’t just about hiring but retention, too. Once you’ve got good people, make sure you’re doing everything you can to keep them happy and engaged.

The New Way of Working

By 2025, nearly a third of employees are expected to be working remotely at least some of the time. That means you need to think about:

1. Keeping things secure: When people work from home, coffee shops, or wherever, how do they keep their data safe?
2. Staying connected: How do you ensure your team can work together effectively when not in the same room? It’s not just about having the right tools – it’s about creating a culture of collaboration.
3. Supporting remote workers: Your IT support will need to be able to help people wherever they are. That might mean rethinking how you provide support.
4. Managing performance: How do you measure productivity when you can’t see people working? You might need to focus more on outcomes than hours worked.

Here’s some ideas to consider for making implementing successful remote operations:

1. Invest in collaboration tools: Software like Microsoft 365 or Google Workspace can help keep everyone on the same page.
2. Beef up your security: Look into VPNs and MFA to keep your data safe, no matter where your team is working from. Consider implementing a zero-trust security model, where nothing is automatically trusted, even within your network.
3. Create clear guidelines: Make sure everyone knows the dos and don’ts of remote working. This should cover everything from data security to expectations around availability and communication.
4. Invest in good equipment: If people are working from home, consider providing them with proper equipment – a comfy chair, a second monitor, whatever they need to work effectively.
5. Focus on wellbeing: Remote work can be isolating. Think about how you can support your team’s mental health and work-life balance.

Making the Most of the Cloud

If you’re not using cloud services, you risk falling behind. However, many small businesses end up paying for cloud services they don’t use or struggling to make different systems work together. 

Here’s how to get the most mileage from your systems:

1. Start with a plan: Before you sign up for any cloud services, think about what you actually need. What problems are you trying to solve? What are your priorities? A clear cloud strategy can help you avoid wasting money on unnecessary services.
2. Keep an eye on costs: Cloud services can quickly add up. Review your usage regularly and ditch any services you’re not getting value from. Look out for hidden costs like data transfer fees.
3. Remember backup and recovery: Just because your data is in the cloud doesn’t mean it’s automatically safe. Make sure you have a solid backup and recovery plan.
4. Keep security in mind: Cloud services can be very secure, strong passwords and multi-factor authentication offer another layer of protection. 

Moving to the cloud is an ongoing process. Keep reviewing and optimising your cloud usage to ensure you get the most value possible.

Keep Up with Generative AI

Generative AI is very much in the vogue and will continue to reshape how small businesses operate. This technology offers fresh, exciting ways to boost productivity and improve customer experiences, from content creation to customer service.

Here’s what you need to keep in kind for the years ahead:

1. Understand the basics: Generative AI can create text, images, and even code. Try out tools like ChatGPT, DALL-E, and GitHub Copilot to see what they can do.
2. Identify potential uses: Could AI help write marketing copy, design graphics, or answer customer queries? Look for areas where AI could save time or enhance quality.
3. Start small: Begin with simple projects, like using AI to draft social media posts or generate blog ideas. This approach lets you learn without major risk.
4. Add the human touch: While AI can produce impressive results, it’s not perfect. Always review and refine AI-generated content to ensure it fits your brand voice and values.
5. Keep learning: Generative AI is developing quickly. Stay informed about new tools and best practices.

Ultimately, generative AI is a tool to enhance your business operations, not a replacement for human creativity and judgment.

Wrapping Up

Changes in IT and technology in 2025 and beyond will bring both challenges and opportunities. By staying informed and being proactive, you can adapt to the challenges while taking advantage of the opportunities. 

Remember that you don’t have to face these challenges alone. At Mustard IT, we’re here to help you navigate the changing world of business technology. Our team can provide solutions tailored to your business needs.

Want to prepare your business for the future? Contact Mustard IT today. Let’s work together to turn these tech challenges into advantages.