Small and medium-sized businesses (SMBs) are under pressure to do more with less. They are expected to innovate, scale, and stay resilient, often without the resources of their larger counterparts.
Mid-market organisations are often the first to operationalise emerging trends like AI, automation, and strategic outsourcing. SMBs can study how mid-market firms are navigating today’s challenges, which helps them avoid common pitfalls and adopt smarter, more scalable strategies.
This piece explores five key areas, from AI and IT skills to data, outsourcing, and strategic priorities, where SMBs can draw inspiration and act.
For the full breakdown of trends, stats, and strategic takeaways, you need the SMB playbook
#1 Strategic priorities and planning ahead
When it comes to setting strategic priorities, SMBs and mid-market firms are aligned in ambition but not always in execution.
For SMBs, the overwhelming focus is on digital transformation, which is 42%. This signals a clear intent to modernise, but also reflects the urgency many smaller businesses feel to catch up with digital-first competitors. Secondary priorities like cost optimisation and customer experience show a pragmatic focus on efficiency and retention.
In contrast, mid-market organisations are spreading their bets across a broader range of priorities. While business expansion and sustainability are high on the list, they’re also investing in workforce development, AI adoption, and automation.
Pro Tip: SMBs don’t need to match the breadth of mid-market strategies, but they should prioritise with purpose.
#2 AI adoption for SMBs
Artificial intelligence is no longer just for medium and large enterprises. But how organisations approach AI varies significantly depending on their scale and maturity. There is a contrast between SMBs and mid-market firms, not just in what they’re doing with AI, but in why and how they’re doing it.
Among SMBs, we see a pattern where AI adoption is still largely tactical. The top use case cited by 40% is intelligent automation, aimed at streamlining repetitive tasks and improving operational efficiency. This is followed by cybersecurity enhancements and customer experience improvements, such as chatbots and virtual assistants. These are practical, high-impact applications and are driven by immediate needs rather than long-term strategy.
In contrast, mid-market organisations are taking a more strategic and integrated approach. AI is being embedded across the business in functions like AI-powered employee assistants and copilots, business intelligence and predictive analytics.
Pro Tip: Don’t just use AI to cut costs but to create value. Start with tools that align with your long-term goals, not just short-term fixes.
“While there are challenges in adopting AI, a thoughtful and strategic approach can help overcome these obstacles. By prioritising data quality, demonstrating clear ROI, and investing in education, businesses can unlock the full potential of AI and drive meaningful improvements.”
Julian Boneham – Technology & Innovation Director Data
#3 IT skills shortages and shared struggles
IT skills shortages are faced by companies of all sizes, but how they handle them varies by size and strategic maturity.
For SMBs, the most common response is investing in employee upskilling, a practical and cost-effective approach that builds internal capability over time. This is followed by increased use of automation and AI, a smart workaround to reduce dependency on hard-to-hire roles.
In contrast, mid-market organisations are leaning towards external strategies. 44% are hiring consultants or contractors, and 35% are revising recruitment strategies, indicating a more proactive, multi-pronged approach to closing the skills gap.
Pro-tip: SMBs don’t need a big team. You need the right mix of skills, partners, and smart automation to stay competitive.
“Address skill shortages, retention challenges, and difficulties in finding the right skills by proactively planning and preparing. Understand your needs, the required skills, and how to maintain your talent pipeline.”
Ian Thomas – Chief Operations Officer
#4 Building a stronger backbone with data strategy
Data is fueling strategic decision-making in organisations.
For SMBs, the top challenge is ensuring data security and compliance, followed by integrating data across multiple systems. These are foundational issues — not just about having data but about managing it safely and cohesively.
Mid-market firms, on the other hand, are further along the curve. While they share concerns around integration and security, they’re also grappling with real-time data processing and scalability and insight generation.
Pro-Tip: SMBs don’t need more data. You need better data, better connected, and better used.
“Encouraging collaboration between IT and business teams can foster a more integrated approach to data analysis. By empowering business users with the necessary tools and skills, organisations can ensure that data-driven decision-making becomes a shared responsibility.”
Julian Boneham – Technology & Innovation Director Data
#5 IT outsourcing as a growth lever
For many SMBs, outsourcing has traditionally been a reactive move as a way to reduce costs or fill gaps. But mid-market organisations are reframing it as a strategic enabler.
Our research shows that 60% of SMBs now fully outsource their IT operations, while another 20% use a hybrid model. This signals a shift where outsourcing is no longer a stopgap but the backbone of IT strategy.
Mid-market firms are increasingly using outsourcing to access specialised skills, accelerate automation, and drive innovation. For example, 44% are hiring external consultants to address IT skills shortages, and 41% are using automation to reduce dependency on hard-to-fill roles.
Pro-Tip: For SMBs key is to choose partners who bring capability, insight, and alignment.
By outsourcing IT, clients don’t need to worry about managing people, dealing with leave, or recruitment issues. This model ensures they receive reliable IT support and focus on their primary business objectives.
Ian Thomas – Chief Operations Officer
Scaling smart for SMBs
SMBs don’t require enterprise-level budgets or headcount. What it does require is clarity, adaptability, and the willingness to learn from those a few steps ahead.
Mid-market organisations are showing what’s possible when technology, talent, and strategy align. For SMBs, the opportunity isn’t to replicate, but it’s to reframe. To adopt AI not just faster, but smarter. To outsource not just for savings, but for scale. To build a data strategy that’s not just secure, but strategic.
With the right mindset, SMBs can lead, not follow, the next wave of innovation.
This article just scratches the surface. For the full breakdown of trends, stats, and strategic takeaways, grab the full ebook.
Unlocking Growth in the Mid-Market: The Node4 Report
The 2025 Node4 Mid-Market Report reveals how business and IT leaders can close the productivity gap and unlock their next growth phase, with insights from 600+ decision-makers across six sectors.
In an era of economic uncertainty, the UK’s mid-market continues to power ahead – but something’s slowing it down. Based on original research with over 600 IT and business leaders, this report exposes the key tensions holding mid-sized organisations back: misalignment between teams, underused technology, and stalled transformation efforts.