Decoding Digitalization: Why we must break down barriers for SMEs

Small and medium-sized enterprises (SMEs) are the beating heart of Europe’s economy, employing around 90 million people, creating 85% of new jobs every year and adding value of more than €4 trillion. However, in a rapidly evolving business environment where the competition for customers is more intense than ever before, digital innovation is vital for these businesses to grow.

I am proud to have started my career at start-ups and so I know first-hand that when digitalization is done right, SMEs can reap enormous rewards – increasing their speed to market, making them more efficient, providing the tools required to protect their businesses from threats.

This requires access to the right technologies and support, which for many small businesses are often out of reach. Indeed, our research on SMEs has found that more than 1.2 million European businesses with less than 250 employees are yet to digitize fully, highlighting the scale of the challenge that this sector faces.

Underserved SMEs

The reality is that for years SMEs have been underserved by the technology and telecoms industries. Instead of the right solutions that match the needs of their businesses, SMEs have been offered ‘off-the-shelf’ solutions that are more suited to consumers rather than small businesses. Research by Analysys Mason from last year found that 69% of SMEs in the US switched service provider because they felt product and service options were not tailored to their needs. This is symptomatic of a landscape where larger corporates are prioritized over smaller companies – and it is not contained to North America.

Combined with…