Why is digital transformation important for SMEs?

Digitalisation offers a range of opportunities for small and medium-sized enterprises (SMEs) to improve performance, spur innovation, enhance productivity and compete, on a more even footing, with larger firms, reflecting: economies of scale; lower operation and transaction costs; reduced information asymmetries; …

How SME could use digital economy to improve the productivity of their activities?

Moreover, the scale of these investments may make digital transformation particularly difficult for non-frontier firms, such as many SMEs (Brynjolfsson, Rock and Syverson, 2017). This implies that the most productive firms have benefitted more from digitalisation than less productive ones (Gal et al., 2019).

How does digitization bring better and more opportunities for SMEs?

Increased digital engagements allow SMEs to explore new markets, enabling them to compete with the top giants in the industry. E-Commerce platforms expand geographical boundaries by engaging in enhanced customer experience and provide support for better supply chain solutions.

How does technology affect SMEs?

Technology gives small businesses the ability to connect with their customers via e-mail, through blogs, social networks and forums. Small business owners can take advantage of this instant connection by getting feedback from customers and applying it to their businesses immediately, if they see fit.

How small businesses are growing in the digital economy?

High digitally engaged small businesses are more than twice as likely to be growing as small businesses with very low digital engagement. Only 28\% of small businesses with a very low digital engagement reported that they are growing, versus 63\% of small businesses with a high level of digital engagement.

How can SMEs digitalization boost the global economy?

Incorporating SMEs digitalization high on the policy agenda as they are a powerful game changer for the economy. It enables SMEs to transform and compete on a larger scale and reach global markets by doing business online. Technological adoption of digital tools is especially beneficial for small and micro-businesses.

How can SMEs benefit from a business ecosystem?

Business ecosystems seem to be the answer to the challenges of digital transformation and an innovative model of the future that can make SMEs fit for the digital economy in the long term. How can small and medium-sized companies benefit on a sustained basis? Being part of a business economy can fuel a company’s innovative power and growth.

What are the benefits of online platforms for SMEs?

Online platforms offer some obvious benefits to SMEs. They provide a means to access new markets, sourcing channels and a multitude of digital networks. They also provide scope for efficiencies that can drive economies of scale, leverage network effects, and, in turn, boost competitiveness and productivity.

Is your SME ready for digital transformation?

Small and medium businesses acknowledge that digital transformation allows them to compete with the more established companies in their market. Driven by the demands and advantages of connectivity and communication, SMEs are ensuring that their business is ready for digital growth.