The Digital Road to Rehabilitation and Development of SMEs - Bulgaria
The roundtable was successful in bringing together a wide range of stakeholders. Partnering with representatives of the private sector, DNA Bulgaria held a closed-door roundtable discussion where local policymakers, small and medium-sized business representatives, experts in the digital industry, e-commerce, higher education representatives and financial intermediaries discussed the opportunities and obstacles to the digitalisation of Bulgarian SMEs in the context of and after the COVID-19 pandemic.
The roundtable dived into particular issues on national level, taking into account EU-wide challenges and responses to the pandemic to streamline the digitalisation of SMEs and their processes.
The COVID-19 pandemic further exacerbated the need to digitalise SMEs and ensure they are protected from cyberattacks. Online tools have been a lifeline for many throughout the pandemic and are a catalyst for the economic recovery. Over the past two years, adoption of technology has accelerated dramatically, creating a “tech-celeration” which has broken old habits and built better ones: in skills, in jobs, in business. The pandemic has also widened existing divisions, particularly for our jobs and economies. Digitally savvy businesses and individuals proved to be much more resilient during the pandemic whereas the ones struggling to adopt technology were exposed to greater economic risks.
Main trends and challenges to the digitalisation of SMEs in Bulgaria and Europe
Maksim Belitski, professor of Innovation and Entrepreneurship, presented a report outlining the main trends in the digitalisation of SMEs in the European Union during the COVID-19 pandemic and highlighted the need for digital tools to become a top priority for SMEs given the added-value potential for sustainability of SMEs – now and in the future.
The roundtable was vital in pinpointing differences between Bulgaria and other EU Member States in terms of digitalisation levels. For example, while online commerce within Europe boomed, Bulgaria is still below EU average. There are also SME-specific barriers, hindering digitalisation. Despite the fact 90% of SMEs think digital tools have enabled them to continue operating during the pandemic, more than half of SMEs that do not use tech are led by CEO over the age of 45 – an age barrier to digitalisation. The use of digital tools on average increases revenue by 1.6 times, improves customer retention by 1.4 times and leads to hiring of 3.3 times more people.
Factors determining the use of digital tools include: the availability of information on the use of such tools; the costs of their implementation; workers' digital skills; high speed internet access; the time for which such instruments are introduced. Digital tools should be a top priority for SMEs because of the significant added value they have for business sustainability during a pandemic. The round table discussed soft measures such as training, comprehensible information and access to finance to help SMEs in digitalisation, to be introduced by public authorities.
In the concluding part of the discussion was outlined the lack of electronic administrative services in Bulgaria as a major problem in the communication of SMEs with the state. In order to successfully digitalise SMEs, there must be audibility for effective communication with state institutions. The participants in the discussion outlined as key the following necessary measures for successful digitalisation of business: 1) encouraging investments for the smooth introduction of digital tools in the business model of SMEs and 2)the acquisition of digital skills through curriculum reforms
Why is this a good practice?
Ensuring a comfortable (closed-door) environment for an open and productive conversation between representatives of business, government and academia is a good practice which can be replicated in other contexts too.
Since the roundtable was organised in a more private environment, it opened up the door for SMEs and representatives to share openly good practices and discuss issues and challenges and how to overcome them. SMEs’ successful digitalisation is a topic which can be discussed in similar formats by other EU member states.
