A LEADING tech and business expert has outlined the four biggest hurdles SMEs are likely to face in the second half of 2025.
Roy Shelton, the CEO of the Connectus Group, believes businesses cybersecurity and AI will present the biggest challenges.
And creating a digital legacy and addressing an industry-wide skills gap are hurdles too.
Roy said: “The midway point of the year is an important moment for all businesses. It’s a chance to reflect on progress across the board and the challenges that lie. All too often roadmaps neglect to take into account the technical challenges a business faces.
“The best companies, and the ones who grow the quickest, are those who put tech development at the heart of their wider business strategy
“As ever, the businesses that adapt first will be the ones that thrive.
Here Roy shares the four areas he’d advise business owners to focus on in creating a tech-roadmap for the second half of 2025.
Cybersecurity and Data Protection
With cyber threats growing in scale and sophistication, UK SMEs remain prime targets for attacks. According to recent reports, over 43% of cyber attacks are aimed at small businesses, yet many lack the resources for robust protection.
Threats like phishing, ransomware, and supply chain vulnerabilities are all on the rise. Compounding this is the continued evolution of data protection regulations such as GDPR and the UK’s Data Protection and Digital Information Bill. Many SMEs are still underprepared in areas like:
- Endpoint security for hybrid/remote workers
- Real-time threat detection
- Staff awareness training
- Compliance documentation and auditing
The cost of a data breach both financial and reputational can be devastating, making cybersecurity a top technical priority. Whilst we often read about the high profile victims – like Harrods, the Co-Op, North Face, Cartier and M&S – it would be entirely wrong to assume that smaller businesses are not also being targeted.
Integrating and Scaling AI
Artificial Intelligence has moved from buzzword to business essential, offering SMEs opportunities to automate, predict, and personalise like never before. However, many UK SMEs struggle to implement AI effectively due to:
- Limited access to quality data
- Lack of in-house AI expertise
- Unclear return on investment
- Security concerns
Off-the-shelf AI tools, such as customer service chatbots or predictive analytics platforms, are becoming more accessible, but without a clear AI strategy, SMEs risk falling behind. The challenge is not just adoption it is now more about intelligent and value-driven integration.
Legacy Systems and Technical Debt
Many SMEs have grown organically over the years, often resulting in patchwork IT infrastructures. Outdated software, siloed systems, and custom-built platforms can slow down innovation and increase maintenance costs.
In 2025, the pressure to modernise IT environments is greater than ever due to:
- Rising customer expectations for digital experiences
- The shift to cloud-native solutions
- Increasing interoperability demands from partners and suppliers
- The need for real-time data across departments
Transitioning from legacy systems requires investment, planning, and sometimes a willingness to disrupt entrenched thinking – “the way we’ve always done things”.
Digital Skills Shortage
The UK’s digital skills gap continues to widen, and SMEs are particularly vulnerable. While large firms can attract top tech talent with high salaries and benefits, the rest often struggle to recruit or retain qualified professionals in areas such as:
- Cybersecurity
- Data analytics
- Software development
- Cloud infrastructure
- AI/Machine Learning
This shortage makes it difficult for SMEs to deliver digital projects on time or innovate at scale. Upskilling existing staff and leveraging external partners are short-term solutions, but the long-term challenge remains structural.
Roy added: “UK SMEs are the backbone of the economy, but their technical challenges in 2025 are both real and rising.
“Tackling these issues of cybersecurity, AI adoption, legacy systems improvements and integration and digital talent requires not just technology investment, but leadership vision, strategic planning, and trusted partnerships.
