The Eurofound–Cedefop 2025 report SME Digitalisation in the EU analyses how Europe’s 25 million small and medium-sized enterprises, the backbone of the EU economy, are advancing in the twin green and digital transitions. SMEs account for 99% of EU businesses and over half of GDP, yet their digital transformation remains uneven across Member States and sectors. The study positions SME digitalisation as a pillar of EU competitiveness, autonomy and resilience amid global uncertainty, geopolitical tensions, and technological disruption.
Digital intensity among SMEs has improved but remains fragmented: while Denmark and Finland have already reached the EU’s Digital Decade target of 90 % of SMEs achieving basic digital intensity, the EU average stands at 73 %, with southern and eastern Europe lagging behind. The report finds that digital adoption is often driven by necessity, such as the COVID-19 crisis or labour shortages, rather than strategy, and limited by financial constraints, lack of skills, and administrative complexity. E-commerce and AI uptake are growing but still concentrated in medium-sized firms and advanced economies. Access to finance, digital infrastructure and cybersecurity capacity remain key structural gaps.
Policy efforts at EU and national levels have multiplied, with the Digital Decade, Recovery and Resilience Facility, and Digital Europe Programme serving as main funding levers. Voucher schemes, training funds and regulatory simplification have proven especially effective in supporting SMEs’ uptake of digital technologies. Yet many firms remain unaware of or unable to navigate fragmented national and regional support systems. Stronger collaboration between SMEs, larger firms, research institutions and digital innovation hubs, combined with tailored training and mentoring, is essential to build digital capacity and resilience across supply chains.
The report concludes that SME digitalisation is inseparable from workforce development. Persistent shortages of ICT specialists and weak investment in upskilling threaten Europe’s competitiveness. National strategies should therefore couple technological incentives with human-capital investment, streamlined access to funding, and better monitoring of policy impact. On balance, Eurofound and Cedefop call for coherent, measurable SME digitalisation policies aligned with the EU Digital Decade, greater investment in digital skills, and a more inclusive approach to ensure SMEs across all regions can benefit from Europe’s digital transition.