Digital transformation remains centre stage for Europe’s SMEs, but the struggle goes beyond software and systems. The current greatest barriers are skills gaps, under-investment in change management and the cost of upgrading legacy infrastructure. These are not superficial issues; they shape the organisation’s ability to compete globally and future-proof the business.
Too often, leaders see digitalisation as a one-off project when the reality is that ongoing investment, training and review are essential. We counsel SMEs to start with a digital maturity assessment: understanding where your capabilities stand now guides smarter investment and mitigates the risk of expensive missteps. For most, the fastest wins are found by automating repetitive back-office tasks, integrating cloud tools that free up staff and identifying a few key data points to inform daily decision-making.
Internal skills need dedicated attention. A third of SMEs in recent European studies identify the lack of digital strategy and project management as a central barrier to progress. Successful clients we have worked with invest in building internal capability through training while also collaborating with specialist technology partners to bridge immediate skill gaps. Pilot projects, such as digitising a single workflow or trialling a new customer engagement platform, show frontline staff the tangible benefits, building support for broader change.
Leadership buy-in is non-negotiable. When senior managers are visibly engaged in transformation, not just signing off budgets but owning deliverables and participating in staff sessions, adoption rates rise and resistance is reduced. Progress is made faster when leaders regularly measure the impact of digital projects, celebrate small wins and communicate the evolving vision across the business.
Ultimately, digital transformation for SMEs in Europe is about resilience and adaptability. With the right approach, even small firms can bridge the gaps, access new markets and unlock efficiencies. The key is focusing on practical, incremental change, bringing in external expertise when needed and building a culture where technology underpins, but never overwhelms, the purpose of the business.