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Why Technology Still Frustrates Many SMBs in 2025

June 29, 2025
Cybersecurity for small businesses

Written by:  Dan Ricks

Small and mid-sized businesses (SMBs) are under pressure to adopt technology to remain competitive, yet many still struggle with practical issues that drain resources, morale, and growth potential.

The biggest issue is complexity. SMBs want to automate, but managing fragmented tools for CRM, accounting, marketing, and operations often creates inefficiency instead of solving it. The promise of seamless integration is rarely delivered out of the box, leaving business owners spending valuable time reconciling systems rather than focusing on customers.

Cybersecurity remains a silent risk. Many SMBs rely on outdated security practices, lacking clear plans for employee training, phishing prevention, or secure data management. With rising AI-driven cyber threats, a single breach can be devastating, both financially and reputationally.

Cloud sprawl is another problem. Moving to the cloud brought flexibility, but many SMBs now have subscriptions scattered across different platforms with overlapping functions and rising monthly costs that are hard to track. Without a clear governance structure, cloud tools become another hidden drain on profitability.

Additionally, talent limitations remain real. SMBs often cannot afford full-time IT staff or advanced cybersecurity professionals. This means they rely on generalists or external consultants, which can lead to inconsistent implementation of technology initiatives, underutilized software, and delayed maintenance.

Finally, AI is adding both opportunity and confusion. Many SMB leaders know they should leverage AI for productivity and insights, but the sheer volume of tools and fear of missteps prevent action. They worry about how to start small without disrupting operations or overwhelming employees.

To move forward, SMBs should focus on a technology simplification mindset:

Prioritize systems that truly integrate or consolidate functions.

Invest in cybersecurity basics and consistent employee awareness.

Regularly review subscriptions and eliminate redundant tools.

Start small with AI, using it for one clear workflow before scaling up.

Technology should be an enabler, not a burden. In 2025, the SMBs that win will be those that embrace tech strategically, focusing on clarity and adoption rather than chasing every new tool.

Are you seeing these challenges in your business or clients? What practical steps are helping you simplify and strengthen your tech foundation this year?

Let’s share experiences below to help SMBs grow smarter.