Project Description

Digital Transformation of Small and Medium Enterprises in ROMANIA



In this report we examine the level of digital transformation of SMEs in Romania in comparison to SMEs from other EU countries. We take into consideration both the digital business environment (digital infrastructure such as Internet availability and digital skills of human capital) and the adoption of digital technologies. The introduction of digital technologies such as websites, social media, e-commerce, electronic information sharing and cloud computing simplifies and accelerates decision making, allows effective brand building, facilitates transactions and makes it possible to reach new customers.

Why is it so important for SMEs to go digital?

Internet and digital tools become a must in the context of the Digital Single Market strategy. The regulations proposed within the DSM greatly enhance the opportunities stemming from successful digital transformation, as well as pose risks connected with losing markets and customers due to digital business illiteracy. Although the digital revolution affects both ICT and traditional businesses, it puts significant pressure on Small and Medium Enterprises (SMEs) that are relatively more sensitive to global competition occurring within the Internet compared to their stronger, bigger counterparts.

Are Romanian SMEs ready to compete on the Digital Single Market?

Our analysis suggests that Romanian SMEs strongly require a digital makeover.
Romanian SMEs are the least digital in the EU, making no use of of e-commerce tools, cloud computing services and electronic information sharing tools. Unfortunately, Romanian business may lack the basic foundation for digital development: an appropriate digital infrastructure with high Internet coverage and a digitally skilled labour force. The poor digital skills of Romanian society creates an especially big obstacle for going digital. Furthermore, enterprises do not invest in digital training for their workforce. As a result, according to the indicators measuring digital transformation of economy and society (DESI), the country takes the last place among the EU28 and falls considerably behind other NMS13 countries.