The majority of South Africa's Small and Medium-sized Enterprises (SMEs) continue to rely on outdated technologies when running business functions, according to a report launched at the Xero Roadshow 2018 taking place this week in Johannesburg.

The report How technology is reshaping South Africa's small business economy by New Zealand-based software company Xero, in partnership with SA-based independent technology market research organisation World Wide Worx, surveyed more than 400 SME owners across 25 distinct markets, including retail, technology, and transportation.

"A large portion (83%) of the businesses questioned are still using Excel spreadsheets, while almost three quarters (73%) are still printing invoices. This demonstrates a distinct lack of awareness concerning the benefits that newer technology can bring," notes the report.

Moreover, 45% of small businesses acknowledge they could be doing more with regards to technology adoption, and 52% say they are just keeping up.

Gary Turner, Managing Director at Xero for EMEA said it has been an uncertain time for SA's small business community, especially in the wake of economic upheaval.

"2018 is crunch time and only the fittest will survive. Without adopting the right technologies, businesses simply won't prosper. Cloud technology is one such digital competency that has huge potential to improve business output. It's encouraging seeing that some are already using cloud and benefiting. Small businesses in SA are held back by a fear of the unknown, leaving them to use outdated tools."

The companies say while small businesses are open to new technologies, the findings demonstrate that poor internet connectivity holds them back. "Almost half (41%) of entrepreneurs cited maintaining a stable connection in their workplace as a key challenge."

The research found that 44% of businesses that already use new technologies like the cloud report significant benefits (70%). Almost half (48%) said to have claimed back more than ten hours per week, a further 52% also assert that cloud technology has saved them money.

Colin Timmis, South Africa Head of Accounting, Xero said, "While it's certainly encouraging that 58% of SMEs included cloud technology in their business plans for the coming year, failing to adopt the right technologies, risks them being left behind."

According to the companies, SMEs comprise 91% of formalised businesses in SA, employing 60% of the country's labour force and contribute 36% of the overall GDP.

Turner concludes, "What individual businesses have before them is a very straightforward choice; they can move with the current or be swept away. If they don't move quickly, then the decision will be made for them, one way or the other, tech adoption is inevitable."