Multicountry Observational Study Mission on Enhancing Service SMEs’ Competitiveness through Digitalization

Digitalization of SMEs is a critical step in building inclusive, productive economies and societies. While there has been an upward trend in the adoption of digital technologies by SMEs, the gaps between larger and smaller firms is wide (OECD, 2021). Promoting the digitalization of SMEs is therefore essential to improve productivity, innovation, and inclusion.

Digital tools bring many significant benefits for firms, including those in the service sector. The COVID-19 pandemic has heightened the importance of SME digitalization since these technologies are essential for business continuity. Under the pandemic, restaurant and tourism providers in the Asia-Pacific have been pushed to adopt digital platforms and tools to tackle disruption. They reduce transaction costs, provide better access to information, and facilitate faster communications between staff, vendors, and other stakeholders. Digital tools also help SMEs integrate more easily into global markets by reducing transport costs and improving access to finance, training, and recruitment using online channels. Overall, digitalization is a key driver of productivity growth for SMEs.

This study mission will examine digitization strategies and best practices to enhance service-sector SME competitiveness by observing business process digitalization, digitalization technologies, and digital tools, frameworks, and policies for service-sector SMEs.

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