Limited access to reliable, fast, and affordable digital infrastructure and lack of digital skills continue to limit the digital transition of SMEs across many OECD countries and regions. Access to fast broadband connection, which is crucial for firms to fully capitalise on the opportunity of the digital transformation and unlock the potential of most advanced applications, remains uneven between urban, rural, and remote areas. Additionally, skills shortages weigh on SMEs’ ability to adapt and transform. Continuous upskilling and re-skilling are essential in a rapidly evolving digital landscape, particularly with the rise of data-driven business models, but most SMEs lack awareness and understanding for proper data management and digital security.

SMEs play an important role for the transition towards more sustainable economies and societies, given their aggregate environmental footprint, and their  potential to develop and implement eco-innovations and greener business practices.

Digital tools can support SMEs in their journey towards more sustainable practices and models. This includes facilitating improved energy efficiency, waste management, and real-time access to information on sustainable practices within their supply chain. However, careful consideration is needed for potential trade-offs, such as the implications of digital waste and the high energy demands of data centers.

Collaborative approaches are key to an inclusive and competitive digital economy. The digitalisation of a large and diverse population of SMEs necessitates collaboration among actors in their ecosystem, even more so as the digital shift accelerates. This provides a supportive environment to foster innovation, share resources, develop skills, and access financial and policy support. During the COVID-19 pandemic, many governments have strengthened existing programmes or launched new ones to support the digitalisation of small businesses, often in cooperation with large digital service providers and leveraging the offer of services and solutions from innovative SMEs and start-ups. As OECD countries have passed the apex of the pandemic emergency, keeping the momentum of the accelerated digitalisation and adapting support schemes to emerging opportunities and new threats are a priority for governments.