Small and medium-sized enterprises (SMEs) are the heart of the European economy, employing around 90 million people, creating 85% of new jobs each year and adding value of more than €4 trillion. However, in a rapidly evolving business environment where competition for customers is more intense than ever, digital innovation is vital for these companies to grow.
I am proud to have started my career in startups and, therefore, I know first-hand that when digitalization is done well, SMEs can reap enormous benefits: increasing their speed to market, making them more efficient, providing the necessary tools to protect your businesses from threats.
This requires access to the right technologies and support, which many small businesses are often out of reach. In fact, our SME research has revealed that more than 1.2 million European companies with fewer than 250 employees have not yet fully digitalised, highlighting the scale of the challenge facing this sector.
CEO of Vodafone Business.
Neglected SMEs
The reality is that SMEs have been underserved by the technology and telecommunications industries for years. Instead of adequate solutions that meet the needs of their businesses, SMEs have been offered out-of-the-box solutions that are more tailored to consumers than small businesses. Research by Analysys Mason last year found that 69% of SMBs in the US changed service providers because they felt the product and service options did not fit their needs. This is symptomatic of a landscape in which larger companies take precedence over smaller ones, and it is not limited to North America.
Combined with additional barriers such as funding shortages and limited time and resources that were highlighted in our survey of 3,000 companies in 11 European countries, SMEs face a number of obstacles that prevent them from unlocking the benefits that come with technological transformation. effectiveness of their businesses. will bring.
That is why, as an industry, we must take a step forward to better support SMEs in their digitalization process.
We need to create solutions that not only work for SMEs, but are made for SMEs; for example, customized security services that fit the needs of your organization, or artificial intelligence tools that allow SMEs to increase their productivity and efficiency in ways that are tailored to their business.
And we need to consider how connectivity providers can use their broader enterprise-level relationships, for example with big tech companies, to provide SMEs with the right support, giving them access to upskilling and knowledge-sharing services that will guide them. on his journey.
Strengthening product capabilities
We are strengthening the capabilities of our established products in our business and paying particular attention to making them affordable and easily accessible to SMEs, allowing them to compete with larger companies and access new markets. We will do this through continued investment in new technology, deepening bespoke partnerships with top technology companies, increasing the number of digital specialists in our business and providing managed services that are suitable for SME clients.
Cybersecurity is an area where the industry needs to level the playing field. As threats multiply and become increasingly sophisticated, it is up to connectivity providers to ensure security platforms work for businesses of all sizes.
If we can tackle head-on the barriers faced by SMEs, we will empower new and emerging businesses to effectively use digital tools, driving growth and contributions to the European economy for years to come. It is also important from a supply chain perspective. The success of companies is based on their relationship with a multitude of suppliers, and it is important that they are technologically coordinated and able to learn from each other.
The potential is immense, but so are the risks. We must act now to ensure that no small business is left behind in the digital age.
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