Meaning ● Skill-Biased Technological Change, within the SMB realm, refers to the disproportionate increase in demand for skilled workers relative to unskilled workers resulting from the adoption and implementation of new technologies. This shift impacts SMBs by necessitating investments in employee training and talent acquisition to effectively utilize automated systems. ● Increased automation often requires SMBs to seek specialized talent, leading to a potential skills gap if existing employees are not adequately retrained. Successful implementation relies heavily on the ability of SMBs to integrate technology with their workforce’s capabilities, thus driving efficiency and innovation. ● This technological advancement prompts SMBs to reassess their operational strategies, focusing on upskilling initiatives to maintain competitiveness in an evolving marketplace. Moreover, Skill-Biased Technological Change significantly influences wage structures within SMBs, potentially widening the gap between skilled and unskilled labor. This reality challenges SMBs to strategically manage human resources and adopt inclusive growth models that distribute benefits equitably.
