Small and medium-sized enterprises remain central to Europe’s economy, yet their digital transformation continues to progress unevenly. During the joint virtual event, Cedefop and Eurofound presented new evidence building on their report SME digitalisation in the EU: Trends, policies and impacts, highlighting how SMEs adopt digital tools, where key barriers persist and what this means for competitiveness, cohesion and job quality.
A mixed picture of digital progress across Europe
Recent data show that digitalisation among SMEs is advancing, but with significant differences between Member States. In 2024, 73% of SMEs in the EU had reached at least a basic level of digital intensity, but this ranged from 50% in Bulgaria to 93% in Finland. Denmark and Finland were the only two countries to meet the EU Digital Decade 2030 target of having 90% of SMEs at a basic level.
Use of digital tools within firms has also grown. Between 2010 and 2024, the share of SMEs where employees use computers and the internet increased from 40% to 60%, yet major disparities remain. Countries like Norway, Sweden and Finland lead, while Romania and Bulgaria continue to show the lowest levels of uptake.
As Cedefop Executive Director Jürgen Siebel emphasised during the event:
“Our agencies are increasingly interconnected and determined to provide the analysis that helps Europe realise its ambitions. What we do together adds value.”
Skills at the core of SMEs’ digital journey
Digital transformation is not only about technology. Evidence shows that SMEs with stronger digital capabilities tend to invest more in their people. Among highly digitalised SMEs, managers were far more likely to see training as a priority; in less digitalised firms, only about one in three considered training essential.
While many SMEs recognise the need for digital know-how, actual provision of training remains limited. Only 21% of SMEs in the EU offered ICT training to their employees in 2024, compared with over 40% of medium-sized enterprises and around 70% of large firms. Northern and western Member States tend to perform better, though countries like Estonia and Poland stand out as strong performers in central and eastern Europe.
This reinforces the priorities set out in the Pact for Skills and EU efforts to boost skills portability and lifelong learning.
Eurofound Executive Director Ivailo Kalfin underlined the link between skills and competitiveness, noting:
“If Europe wants a successful digital transition, we must ensure that SMEs have the tools, the skills and the support they need.”
Persistent barriers slowing the pace of change
Across the EU, several obstacles continue to limit SME digitalisation:
- SMEs often digitalise reactively rather than strategically, with limited incentives for firms serving local or traditional markets.
- difficulties securing funding for major upgrades
- support schemes available to SMEs are burdened by heavy administrative procedures and limited budget
- leaders and staff frequently lack the digital and strategic skills needed to integrate new technologies effectively
- weak policy evaluation prevents learning from past initiatives, limiting the effectiveness of future digitalisation support
These constraints affect not only technology adoption but also job quality, work organisation and the ability of SMEs to stay competitive.
SME digitalisation could be strengthened by providing tailored strategic support and upskilling for managers and business leaders, improving access to funding through simpler and better-resourced schemes and reducing administrative burdens.
Policymakers should also engage trusted intermediary organisations, such as chambers of commerce, sector associations and SME networks, from the early stages of policy design and ensure that information flows through channels SMEs already rely on. This will make policies better aligned with the ‘think small first’ principle. Finally, systematic policy evaluation is essential to identify what works and to improve future support measures.
Building a clearer picture for smarter policies
The event highlighted the growing need for coordinated approaches to help SMEs keep pace with the demands of digital transformation. By combining labour market, skills and working conditions data, Cedefop and Eurofound aim to support policy makers as they design measures that are both effective and inclusive.
The full presentation and a recording of the event are available on the event page.