By Lana 
Small and medium-sized enterprises (SMEs) in Europe are under pressure to keep up with digital change. Digital tools help businesses grow, improve efficiency, and reach new customers. But many SMEs lack the money, knowledge, or time to take full advantage of these tools. The European Union is working to close this gap.
This article explains what digitalisation means for SMEs, what support the EU offers in 2025, and how your business can benefit.
What Is Digitalisation?
Digitalisation means using technology to improve business operations. This includes everything from digital marketing and cloud storage to automation, data analysis, and artificial intelligence (AI). For SMEs, it can lead to better productivity, lower costs, and stronger customer relationships.
Why Digitalisation Matters for SMEs
Increased Efficiency
Digital tools save time by automating tasks such as accounting, inventory management, and customer service.
Access to New Markets
Online platforms let SMEs reach customers across Europe and beyond. E-commerce and digital advertising make it easier to grow sales.
Better Decision-Making
With digital tools, businesses can collect and analyse data. This helps them understand customer needs and improve products.
Improved Resilience
Digital systems make it easier to adapt to change, such as shifts in demand or supply chain issues.
What the EU Is Doing to Help
Digital Europe Programme
This EU programme focuses on building digital capacity. It supports SMEs with funding for tools such as AI, cybersecurity, and advanced computing. It also promotes the use of digital public services.
European Innovation Council (EIC)
The EIC offers funding and advice for SMEs that develop or adopt new digital technologies. It supports high-risk, high-potential ideas with grants and investment.
Digital Innovation Hubs (DIHs)
DIHs are local centres that offer advice, testing, and training for SMEs. They help businesses try out digital tools before investing. They also connect SMEs with experts and funding opportunities.
Horizon Europe
Horizon Europe funds research and innovation, including digital projects. SMEs can join consortia to work on new digital solutions or improve their own products.
SME Strategy for a Sustainable and Digital Europe
This strategy outlines the EU’s goals for helping SMEs go digital. It includes simplified funding, better access to digital skills training, and stronger support networks.
How SMEs Can Benefit
Apply for Funding
SMEs can apply for grants or loans through EU programmes. Websites such as the Funding & Tenders Portal and national contact points provide details.
Use Digital Innovation Hubs
Find your nearest DIH to get support with digital tools. Many offer free or low-cost services to SMEs.
Join EU Networks
Connect with business support networks such as Enterprise Europe Network. These can guide you through the digitalisation process and help find partners.
Invest in Skills
Train your team in areas such as digital marketing, data use, or cybersecurity. This helps you make better use of digital tools and avoid common risks.
Start Small
Begin with simple tools such as online invoicing, cloud storage, or website upgrades. Small steps can lead to big improvements.
Real-World Example
A small food producer in Italy joined a local DIH in 2024. With help from EU-backed experts, the company adopted a digital inventory system and launched an e-commerce platform. As a result, online sales rose by 30%, and stock management costs dropped.
Common Challenges and How to Overcome Them
Cost
Digital tools can be expensive, but EU grants and low-interest loans help reduce the burden.
Skills Gap
Training programmes funded by the EU are available to close the knowledge gap. These include online courses and in-person workshops.
Fear of Change
Some businesses worry about making mistakes. Starting with small projects and working with experienced advisors reduces risk.
Digitalisation helps SMEs grow, cut costs, and stay competitive. The EU is making it easier through funding, training, and expert support. Businesses that take action today will be in a better position tomorrow.
Use the tools, networks, and programmes already in place. With the right support, digitalisation is not a threat—it is a smart step for the future.