Why training systems matter for SMEs
Small and medium-sized enterprises (SMEs) are the backbone of the European economy. According to the European Commission, SMEs represent around 99% of all businesses in the European Union and employ more than 85 million people, making them a central pillar of Europe’s economic growth, innovation and employment system (European Commission, SME Strategy) .
Because of their dominant role in the economy, Europe’s digital transition cannot succeed without SMEs. If small businesses struggle to adapt to technological change, the overall transformation of European industry and services will slow down. Supporting SMEs in digital transformation is therefore not only an economic priority but also a strategic one for the EU’s long-term competitiveness.
However, the digital transformation of SMEs remains uneven across Europe. Data from Eurostat’s Digital Intensity Index show that about 73% of EU SMEs had reached at least a basic level of digital intensity in 2024, meaning that they use some digital technologies such as cloud services, social media, or e-commerce tools. Yet this figure is still significantly below the EU Digital Decade target of having at least 90% of SMEs digitally intensive by 2030 (Eurostat, Digitalisation in Europe) .
Moreover, most SMEs remain concentrated in the low or very low digital intensity categories, while only a small proportion have adopted more advanced technologies such as artificial intelligence, big data analytics, or advanced automation systems (Eurostat statistics on enterprise digitalisation) . This suggests that while digital tools are increasingly present in SMEs, deeper organisational transformation is still limited.
One of the main reasons is that digital transformation is not simply a technological upgrade. It requires new organisational models, new competences and new ways of working. SMEs must be able to integrate digital tools into business processes, decision-making, customer relations and production systems. In other words, digital transformation is fundamentally a skills transformation.
This is where Vocational Education and Training (VET) plays a critical role.
Across Europe, VET systems are designed to connect education with labour-market needs and to provide practical skills that support innovation and productivity. European policy frameworks emphasise that modern VET systems are essential to support both the digital and the green transitions, ensuring that workers and companies have the competences required in rapidly evolving economic environments.
For SMEs, the role of training systems is particularly important because smaller firms often face structural barriers to innovation. Compared with large companies, SMEs typically have fewer internal training resources, limited time for staff development, and less capacity to experiment with new technologies. As a result, external support from training institutions, skills ecosystems and regional innovation networks becomes essential.
Well-designed VET systems can reduce these barriers by translating technological change into practical learning pathways. Training providers can help SMEs identify emerging skills needs, access upskilling opportunities, and integrate work-based learning approaches that directly connect training with business innovation.
Another important dimension is that digital transformation must also be sustainable and inclusive. Europe’s policy framework increasingly highlights the concept of the “twin transition” — digital and green — which requires companies not only to adopt digital technologies but also to use them to improve resource efficiency, environmental performance and responsible production models.
In this context, training systems play a key role in ensuring that digitalisation supports broader sustainability goals. Workers and entrepreneurs need competences not only in digital tools but also in data management, process optimisation, circular economy practices and responsible use of emerging technologies.
Effective VET systems can therefore act as bridges between innovation, education and economic development. By connecting SMEs with training providers, innovation hubs and regional development actors, they help build local skills ecosystems capable of supporting continuous learning and technological adaptation.
This collaborative approach is increasingly recognised in European policy initiatives that promote cooperation between businesses, training institutions and innovation networks to strengthen regional competitiveness and workforce development.
Ultimately, the success of Europe’s digital transformation will depend not only on access to technology but also on the availability of skills, learning opportunities and training infrastructures that enable companies to use those technologies effectively.
For SMEs, digital transformation is not just about adopting new tools. It is about developing the capabilities to innovate, adapt and grow in a rapidly changing economy. Strong VET systems are therefore essential in helping small businesses turn digital ambition into sustainable and long-term organisational change.
Sources
European Commission – SME Strategy and SME definition
Eurostat – Digitalisation of businesses and Digital Intensity Index
Eurostat – Towards Digital Decade targets for Europe
Eurofound – SME digitalisation in the EU: Trends, policies and impacts
