Decoding digitalization: why we need to break down barriers for SMEs
Small and medium-sized enterprises (SMEs) are the heart of the European economy, employing around 90 million people, creating 85% of new jobs every year and adding a value of more than €4 trillion. However, in a rapidly evolving business environment where competition for customers is fiercer than ever before, digital innovation is critical to the growth of these companies.
I am proud to have started my career in start-ups and so I know first-hand that when digitalization is done right, SMEs can reap huge benefits by increasing their speed to market, more efficient and provide the tools needed to protect their business operations. companies against threats.
This requires access to the right technologies and support, which are often out of reach for many small businesses. Our SME research found that more than 1.2 million European businesses with fewer than 250 employees are not yet fully digitalised, underscoring the scale of the challenge facing this sector.
CEO of Vodafone Business.
Underserved SMEs
The reality is that small and medium-sized businesses have been underserved by the technology and telecom sector for years. Instead of the right solutions that fit the needs of their business, small and medium-sized businesses have been given off-the-shelf solutions that are more suitable for consumers than for small businesses. Research from Analysys Mason last year found that 69% of small and medium-sized businesses in the US switched service providers because they felt product and service options were not tailored to their needs. This is symptomatic of a landscape where larger companies are being prioritized over smaller companies – and this is not limited to North America.
Combined with additional barriers such as funding shortages and the limited time and resources revealed by our survey of 3,000 companies in 11 European countries, SMEs face a range of obstacles that prevent them from unlocking the benefits that come with effective technology transformation of their company. will bring.
That is why we as a sector must go a step further to better support SMEs in their digitalization journey.
We need to create solutions that not only work for SMEs, but are made for SMEs – for example, tailor-made security services that fit the needs of their organization, or AI tools that enable SMEs to increase their productivity and efficiency in ways that are tailor-made for their business.
And we need to consider how connectivity providers can use their larger enterprise-level relationships, for example with Big Tech, to provide SMEs with the right support, giving them access to upskilling and knowledge-sharing services that will guide them on their journey.
Strengthen product capabilities
We are strengthening our established product capabilities across our business and paying special attention to making them affordable and easily accessible to SMEs so that they can compete with larger enterprises and access new markets. We will do this through continued investments in new technology, deepening tailored partnerships with the best technology companies, increasing the number of digital specialists in our business and delivering managed services suitable for SME customers.
Cybersecurity is an area where the industry needs to level the playing field. As threats proliferate and become more sophisticated, it’s up to connectivity providers to ensure security platforms work for businesses of all sizes.
If we can tackle the barriers facing SMEs head-on, we will enable new and emerging businesses to make effective use of digital tools, boosting growth and contributions to the European economy in the years to come. It is also important from a supply chain perspective. The success of companies is based on their relationships with a large number of suppliers, and it is important that they are technologically coordinated and can learn from each other.
The potential is enormous, but so are the stakes. We must act now to ensure that no small business is left behind in the digital age.
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