Our analysis shows that SMEs in Latvia benefit from high-speed, high-quality and relatively cheap Internet, which is due to a high coverage of FTTP (Fiber to the Premise) technology in the country. The level of digitalisation of human capital in Latvia is also promising: the Latvians have very high digital skills in communication, information and problem solving. On the other hand, Latvian SMEs tend not to use digital technologies as much as SMEs in other EU countries. The biggest gaps appear in usage of cloud computing services and adoption of digital management tools, which might result from the lack of software skills that Latvian citizens report. Moreover, the utilisation of websites, social media and e-commerce sales channels is also much lower than in SMEs from other EU countries.