During the Business Sentiment study, we obtained direct information from the decision-makers of Romanian SMEs regarding the priorities and impact of digital solutions adopted.
In the digital era we live in, technology plays an increasingly important role in the operations of any business, regardless of industry or company size. The integration of digital solutions has been accelerated by unprecedented global events, like the coronavirus pandemic or the conflict in Ukraine.
Therefore, the digitalization of businesses has become essential to remain competitive in the market and to improve the efficiency and productivity of companies.
However, digital optimization still faces certain challenges in Romania, especially in the case of SMEs.
In this context, we set out to understand what the business approach of small and medium-sized enterprises regarding technology is. The study “Digitalization in SMEs from Romania” was conducted in partnership with Senior Software at the end of 2022.
Here are the key aspects that we found:
- Over half of the SMEs measure the impact of digitalization, and for a quarter of companies, the estimated impact exceeds 30% of the business turnover.
- The most sought-after solutions aim at operational efficiency and data management.
- Strategic approach, targeted direct investments, and expertise ensure the success of digitalization initiatives.
Access for free the study Digitalization of SMEs in Romania 2023 for complete results.
Romanian SMEs Trail in EU Digitalization Rankings
According to the most recent DESI report, there is a significant gap between Romania and other European Union countries regarding the digitalization level of small and medium-sized enterprises. Currently, approximately 2 out of 10 Romanian SMEs are at a basic level of digital intensity, while the European average is 56%.
Potential barriers to integrating digital technologies within organizations include the availability of necessary resources. Based on experts interviewed in a similar study in 2021, human and financial resources are the most relevant in the digital optimization process.
Nevertheless, there is an interest among Romanian SMEs in growing their digital solutions, according to Softlead platform statistics.
In 2022, a notable proportion of companies that sought software solutions had a business turnover of less than 500,000 euros.
Over Half of SMEs Using Digitalization Solutions Monitor Impact
Small and medium-sized companies in Romania that have integrated digital technologies in their businesses tend to evaluate their investments differently.
The “Digitalization in SMEs from Romania” study has shown that over half of these companies measure the impact of digitalization on their business turnover. This estimated impact is particularly significant for small-sized companies, at 66%.
Regarding the amortization of investment, the impact of digitalization on business turnover is usually below 20%. For a quarter of the companies, the estimated impact exceeds 30% of the business turnover.
Key Pillars for Success: Strategy, Investments, and Expertise
The majority of decision-makers interviewed believe that successful digitalization initiatives hinge on:
- Strategic approach
- Financial resources
- Digital expertise
Moreover, the study revealed that small businesses, particularly those with turnovers between 2 and 10 million euros, place a greater emphasis on defining a clear direction tailored to digital optimization needs across the company.
At the same time, institutional priorities vary from one company to another. For instance, 42% of micro-enterprises prefer to invest in technologies and appropriate tools, while a similar percentage of medium-sized companies prioritize funding for the development of their employees’ digital competencies.
For the success of digitalization, small and micro enterprises are more willing to collaborate with external partners for the implementation or development of digital solutions (35%) compared to medium-sized companies.
Operational Efficiency and Data Management: Key Objectives for the Digitalization of SMEs
SMEs are seeking digital solutions for key areas of business.
- Nearly 7 out of 10 SMEs use digital technologies for optimizing processes and workflows.
- Half of the SMEs have implemented data management solutions.
The study also revealed that, unlike the average of the sample, micro-enterprises place more emphasis on identifying solutions that facilitate customer relationships; this is the second (after the fourth) most significant concern in the process of digital optimization.
Access for free the study Digitalization of SMEs in Romania 2023 for complete results.
Business Partner Recommendations: The Main Source for Documenting Software Solutions
Decision-makers in SMEs access many sources of information (an average of 2.9) when looking for a digital solution for their company.
77% of these turn to their business partners for recommendations.
The Business Sentiment Study has highlighted several peculiarities regarding the sources of information used, depending on the size of the company. Notably:
- Google is particularly favored by decision-makers in medium-sized companies.
- Specialized sources are more frequently consulted by representatives of smaller companies.
Methodology
The data are extracted from the Business Sentiment Study – Digitalization of SMEs in Romania, conducted by MKOR Consulting in partnership with Senior Software.
Sample Size: N=102 respondents
Target: Decision-makers in Romanian SMEs, responsible for contracting and managing digital solutions
Method of Research: Survey (CAWI & CATI)
Research Tool: Questionnaire
Period: December 2022
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