EU and USA flag. 3d illustration
Digital Skills and Strategies Tips for SMEs
Learnings from the EU-U.S. TTC Working Group on SME Access to and Use of Digital Tools Webinar on SME Digital Skills and Developing Strategies for Companies.

USEUTTC Digital Skills

Use of Digital Tools

Digital tools are critical for small and medium-sized enterprises (SMEs) to innovate, grow, and compete. In addition, the increased use of digital tools by SMEs is fundamental to building inclusive and resilient economies and societies. Yet small businesses continue to underutilize digital resources, such as tools for online payment processing, productivity management, building e-commerce websites, and marketing, all of which can help SMEs reach customers around the world.

Digital Transformation is a Mindset and Should be in a Company’s DNA

Members of the U.S. and EU business communities have expressed the need for urgency for companies to access and utilize digital tools. The following are overarching considerations and best practices for SMEs seeking to adopt digital tools:

  • In terms of strategic planning, firms should define their goals and objectives before going digital.  Management should seek to understand the advantages and challenges, including from a financial perspective, associated with implementing digital technologies in their operations. 
  • At the company level, there should be at least one dedicated individual responsible for the digitalization process, this role would focus on increasing digital literacy in the company, such as hiring people with relevant digital skills, training staff, and choosing technology in a way that supports productivity and functionality.  Due to the fact that SMEs often face great difficulties in finding digitally skilled workers, internal “upskilling” and “reskilling” is particularly important.
  • SMEs should select tools based on usability, as minimizing the difficulty around learning and deploying each digital tool can help foster a companywide digital culture.  
  • With the adoption of digital tools, SMEs should acquire cybersecurity expertise and promote cybersecurity awareness among their employees as cybersecurity requires the collective effort of everyone involved in the business.  For more information, including free resources from national cybersecurity authorities that SMEs should first consult for assistance, please see Cybersecurity Tips for SMEs: Learnings from the EU-U.S. TTC Working Group on SME Access to and Use of Digital Tools Webinar on Cybersecurity Awareness.

Increasing Capacity without Increasing Capital Expenditure

Leveraging digital technologies, especially tools that incorporate artificial intelligence, can help companies maximize resources and grow capacity, allowing them to level the playing field—and punch above their weight. SMEs can explore their options and seek out digital tools providers that offer both free and paid services. Services that may help streamline operations for SMEs include video communications and online chat platforms, social media schedulers and managers, graphic design and presentation templates, and marketing and e-mail automation. Individuals might also use digital tools to leverage existing expertise.

Diversity is Needed to Increase Creativity

Being part of a solid and diverse digital ecosystem can be a point of strength for SMEs. SME engagement with younger generations and hiring a diverse pool of employees can play an important role in a firm’s digital future. SMEs should explore mentorship opportunities centered around digital skills and strategies, which can help increase a firm’s adaptability, diversity, and creativity. In addition, SMEs could cooperate with such institutions as small business support infrastructure, non-governmental organizations, universities, and community organizations, among others to develop mentoring, internship, and employment opportunities for individuals from different backgrounds.

Governments Can Help Put SMEs in Front of a Larger Community

Governments, including government resource partners, can play a key role in promoting access to and use of digital tools for stakeholders of diverse backgrounds, including those from underrepresented and underserved communities. For example, governments can promote the cooperation of SMEs with research institutions and industry groups to foster innovation, develop digital skills, and prevent brain drain. Governments can support a positive feedback loop by highlighting success stories and following examples of positive impact, and SMEs can seek to frame their business in the context of helping to solve, local, national, or even global societal challenges. Awareness about the potential of digital solutions is still lacking among SMEs, which is why showcasing positive examples can drive companies to start their digitalization process. 

SMEs Should Avail Themselves of Government Resources

Many governments are making available initiatives for stakeholders of diverse backgrounds that should address the local skills gap and strengthen the overall digital ecosystem based on the principles described above.  In particular:

  • In the United States, the U.S. Small Business Administration has launched the Small Business Digital Alliance, a public-private partnership to help small businesses grow their online footprint through access to free digital tools. In addition, Small Business Development Centers and other SBA Resource Partners provide informational tools to support business start-ups and business expansion, through low-cost business development training for SMEs. 
  • In the EU, the Digital Skills and Jobs Platform provides many resources for upskilling and reskilling of the workforce, including news on funding opportunities, opinion posts, relevant learning material, and a training catalog in digital areas. A self-assessment tool for digital skills is also available by registering on the platform. The network of European Digital Innovation Hubs or the Enterprise Europe Network provides help for SMEs to adopt digital tools in a secure way. As there is no one-size-fits-all solution for digitalization, individually tailored advice provided by these organizations is relevant, including assessing digital maturity, offering mentoring, raising awareness, and facilitating experimentation with digital tools and access to finance.