4 Challenges of Data Management for Small Businesses


Small entrepreneurs have not embraced technology adequately. Most of the small businesses believe that technology is costly. However, experts have developed products and services that are relatively affordable by all, but a majority of small business entrepreneurs have declined to embrace the changes in technology.

Practices That Deter Growth of Small Businesses

Data Storage and Backup

Most of the small businesses have for years ignored data storage and proper reliable data backup systems. Data can be defined as the important information such as clients or employee details, company finances, project particulars and much more. Failure to have data backup despite the many available data loss prevention and recovery systems can cause economic losses. Proper data storage and back up infrastructure is crucial to any business setup and aids in improving efficiency in business operations.

However, most small businesses are very accurate and active in data collection, storage, and backup, but these efforts have no positive contribution to the growth of the company. The data collected should not only be stored on the servers but must also be used in making business decisions that will grow the organization. Data storage and backup systems must be reliable.

Data Strategies

Small businesses lack data strategies, which should be put in place for control, management, and storage of business information. In every business setup, there should be controls governing each step of data handling, factoring that a third party controls data. Data protection must be observed at all times to ensure confidentiality of business and its client’s information. Due to lack of system security controls most of the small businesses experience data hacking which at times result in loss of businesses.

Small businesses must ensure strategies and policies are in place to protect organization data. These strategies must by extension cover their employees. For instance, it should be clear that ex-worker accounts must be deactivated to protect business data from hackers.

Systems and Processes

Small entrepreneurs often ignore systems and processes. Lack of systems and processes cause conflict and confusion in any organization despite its growth level. Most small businesses strain when impacted with growth as they lack proper responsibilities and accountability structures thus resulting in loss of business focus. Since systems are becoming smart enough to talk to each other through foster programs integration, so are the people through these systems.

Software like Quickbooks has controls and permissions that can be granted to each user in an organization depending on their area and level of operation. Also, systems ensure that data is shared with team members, ensuring members within an organization are connected and well informed.

Knowledge and Skills

Lack of knowledge and skills in the small business set up challenges its growth to technology. At times the entrepreneurs may lack resources to embrace technology and view it as an extra cost for the business. For any business to operate effectively and efficiently, it has to invest in skills development. While most enterprises are ambitious to embrace technology, many don’t realize it; this results in a high degree of inaccurate and disparate data which can’t be reliable in making business decisions.

Until small business entrepreneurs realize the economic growth impact of data management in their business, they may be faced with a storm of challenges especially in this digital era. Quality Data management has and will always be the key to any business success. High-Quality data helps any organization set up in making critical business decisions. Data management practices assist in building stronger customer relationships and dealing with internal and external business challenges.

Small business owners are resilient in planning for change. For them to embrace growth, they should be ready to plan for the unexpected. It’s said failure to plan is the most straightforward roadmap to fail. If small business companies want to experience growth, they should keep at par with the modern business strategies and transform their traditional way of operation. Smarter and more informed data management practices can go from being the elephant in the room to one of the best business enablers for any small business, so long as it is done right.

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Kevin Schultz is a professional journalist with over 15 years of writing and media experience. He is a full-time contributor to the Themocracy Online News Blog and his insightful writing has been enjoyed by thousands.