Paper-based databases can immediately get lost. You may place it in a folder and then forget the folder somewhere else. When you know that the database needs to be copied, you may have to do it by hand or do it again from scratch. It is also very expensive to update the paper-based database especially if you know that there are less expensive choices that are available.
You also need to create space in order to place all of your needed paper-based databases. All of these can be avoided if technology would be embraced more. There are disadvantages to that as well but at least there are also amazing benefits that are evident for businesses.