Can SMEs take the digitalisation for granted?

.Digitalisation offers companies many opportunities in terms of products and services, processes and structures, resource efficiency, and new business models.

.At the same time, small and medium-sized enterprises face fundamental challenges: Digitalisation is a matter of high investment costs, constant data and legal security, access to knowhow through internal and external networking, and successful cultural change.

.High-speed nationwide broadband networks are the lifeblood of digital applications. However, Germany’s digital infrastructure lacks behind in international comparisons and remains a key obstacle for businesses, especially for SMEs in the countryside. Strategic investments are long overdue.

Challenges in enabling digitalisation

Source: IfM Bonn (2020a)

N=135; in percent

Extending digital infrastructure

Increasing IT security

Ensuring data protection

Ensuring access to AI skills

Further developing/ enforcing legal framework

Expanding digital networking between companies 43.7

38.9

38.0 79.1

74.1