Meaning ● Skill Polarization, within the SMB sphere, refers to the widening divide between high-skill and low-skill labor demands created by automation and technological advancements. It poses unique growth and operational challenges for small and medium-sized businesses. Implementation of advanced systems often results in increased need for specialized roles, creating a shortage of readily available talent. The issue necessitates SMBs to strategically invest in employee training, development initiatives and internal re-skilling programs to avoid bottlenecks and maintain competitiveness. Furthermore, SMBs are confronting difficulties in sourcing talent for routine tasks, as these are displaced or diminished by the rise of software robots, robotic process automation (RPA), and AI implementation which impact core operations. Skill Polarization significantly pressures wage structures and strategic business decisions surrounding technology adaptation. It can also require SMBs to rethink operational strategy in order to address these shifts. The adaptation of SMBs to advanced technology thus requires proactive mitigation strategies that focus on addressing the increasing gap between low-skill and high-skill requirements, impacting sustainable and continued company prosperity.
