Digital Responsibility as a Competitive Advantage for Small and Medium-Sized Enterprises (SMEs)
SMEs constitute the backbone of the European economy, making up over 99% of all businesses and two-thirds of all jobs in the private sector.[1] Digitalisation can unlock SME competitiveness by helping them reach new markets and improve the effectiveness of their operations.[2] However, their ability to sustain this competitiveness increasingly depends on their responsible use of digital technologies.[3]
Digital Responsibility as a Value Driver
Digital responsibility, which includes data security, transparency, data protection, and sustainable digital practices,[4] should not only be seen as a duty to comply with regulations but also as strategic asset. The key lies in acknowledging the relationship between digital responsibility and value creation. Companies perceived as digitally responsible tend to cultivate higher levels of stakeholder trust and loyalty, which can subsequently contribute to increased sales and more effective talent acquisition.
As societal expectations regarding the responsible use of digital technologies intensify, enterprises that implement and uphold these practices are likely to secure a distinct competitive advantage.[5]
Challenges for SMEs
Nonetheless, a significant number of businesses have yet to fully recognize the importance of digital responsibility in value creation. Regulatory obligations, such as those established under the European Union’s General Data Protection Regulation (GDPR), can represent significant challenges for some. As a result, compliance often dominates their attention, which may restrict their understanding of digital responsibility and hinder its broader potential as a source of competitive advantage.[6]
The DIRECT project will support SMEs in addressing this challenge by equipping them with the knowledge, tools, and training needed to develop digital responsibility competences. By fostering ethical and sustainable digital practices. DIRECT will help SMEs not only meet regulatory requirements but also build trust, strengthen stakeholder relationships, and enhance their competitiveness in a rapidly evolving digital economy.
References:
[1] https://ec.europa.eu/regional_policy/policy/themes/sme-competitiveness_en
[2] https://www.oecd.org/en/publications/sme-digitalisation-for-competitiveness_197e3077-en.html
[3]https://www.kmu.admin.ch/kmu/en/home/new/interview/2024/digital_responsibility_safeguards_smes_from_reputational_risks.html
[4]https://www.kmu.admin.ch/kmu/en/home/new/interview/2024/digital_responsibility_safeguards_smes_from_reputational_risks.html
[5] https://ethz.ch/en/news-and-events/eth-news/news/2023/11/blog-why-business-should-embrace-digital-responsibility.html
[6] Ibid.
