The European Union’s goal of having 90% of small and medium enterprises reach a basic level of digital services by 2030 seems to be significantly far from reality, with only 58% currently meeting this criteria. According to Eurostat, large enterprises with at least 250 employees are faring much better, with 91% reaching a basic level of digitalisation. However, the disparity between countries is quite significant, with some having a high level of digital intensity while others are lagging far behind.
Countries with a high number of businesses on a very low level of digital intensity include Romania, Bulgaria, and Greece, with percentages ranging from 56.2% to 72.1%. On the other end of the spectrum are countries like Finland, Malta, and the Netherlands, with a very high level of digital intensity ranging from 11.0% to 13.0%. The Digital Intensity Index (DII) is used by the EU to determine a business’s level of digitalisation, with a basic level being defined as using at least four of 12 digital technologies or having e-commerce sales account for at least 1% of total turnover.
Given the current state of digital services in small and medium enterprises in the EU, it is clear that more needs to be done to bridge the gap between the goal set by the EU Commission and the current reality. Businesses that embrace digital technologies and services are more likely to stay competitive and resilient in today’s rapidly evolving digital landscape. By adopting digital tools such as AI, social media, cloud computing, and Customer Relationship Management, businesses can enhance their operations, reach a wider audience, and drive growth.
The benefits of digitalisation are numerous, including improved efficiency, lower costs, enhanced customer experiences, and increased competitiveness. Small and medium enterprises that invest in digital technologies are better positioned to adapt to changing market conditions, meet customer expectations, and seize new opportunities for growth. For countries with a high percentage of businesses on a very low level of digital intensity, such as Romania, Bulgaria, and Greece, there is a clear need for government support and initiatives to help these businesses integrate digital tools into their operations.
In contrast, countries with a high level of digital intensity, such as Finland, Malta, and the Netherlands, can serve as examples of how embracing digitalisation can drive economic growth and innovation. By focusing on digital skills development, promoting digital literacy, and providing incentives for businesses to adopt digital technologies, these countries have created a supportive environment for digital transformation. As the EU works towards its goal of having 90% of small and medium enterprises reach a basic level of digital services by 2030, there is a need for continued collaboration between governments, businesses, and stakeholders to accelerate digitalisation across the region.
In conclusion, the current state of digital services in small and medium enterprises in the EU highlights the importance of accelerating digital transformation to drive economic growth, innovation, and competitiveness. By embracing digital technologies, businesses can improve their operations, reach new customers, and unlock new opportunities for growth. With concerted efforts from governments, businesses, and stakeholders, the EU can move closer towards its goal of having 90% of small and medium enterprises reach a basic level of digital services by 2030.
