Two-thirds (66%) of UK Small and medium-sized enterprises (SMEs) leaders seek data privacy reform to address the “significant GDPR shortcomings” presented from the data.
A new study by the DMA shed light on the severity of the problem leading to the trade association calling upon Parliament to urgently pass new DPDI data privacy reforms.
Figures from the report revealed that GDPR is still popular with the majority of businesses, with most SMEs (74%) agreeing that the processing of personal data is vital to the growth and success of their business.
Yet alarmingly, nearly half of SMEs (43%) revealed that their business marketing operations have been stunted by GDPR, while nearly a third (31%) claim that GDPR has caused them to get rid of a lot of their customer database.
A further 48% express concern expressed concern that GDPR introduced unnecessary bureaucracy to businesses, while well over a third (37%) say it doesn’t work for small businesses.
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The report comes amid the Data Protection & Digital Information Bill (DPDI), which is set to update the UK’s data protection framework, and will attempt to address GDPR’s limitations.
Clarity around how to best maintain customer databases, fill them with engaged customers and communicate with existing customers is something businesses are requesting, claiming GDPR’s complex legal text caused confusion.
As a result, three-quarters of SMEs (75%) are calling for data protection regulations that easily enable them to prospect for new business; and a similar percentage (76%) want regulations that make it easier to talk to their current customers.
“Most SMEs seek reforms to UK data privacy legislation that makes it easier to attract new customers and retain existing ones”, said DMA CEO Chris Combemale.
“This is key to unlocking business growth and realising the full potential of the UK digital economy; by using customer insights to simultaneously improve the productivity of businesses and save time for customers through personalised services.”
“Reforms within the DPDI Bill will create a better balance between innovation and privacy, maintaining GDPR’s high levels of data protection while enabling scientific and technological innovation that will power the future economy.”
“There is strong support for these opportunities across the UK’s SME community, so we would urge the UK Parliament to complete passage without hesitation.”
