A recent study by the E-Business Research Center (ELTRUN) of the Athens University of Economics and Business, showed that Greek SMEs have shown significant progress in their digital readiness from 2020 to 2024. Nevertheless, despite this upward trend, most companies remain in early stages of digital transformation, utilizing on average only 50% of available digital tools and systems.
The Digital Readiness Index, created for the first time in 2020, tracks the level of digital maturity of SMEs based on their adoption of 10 key digital tools and systems. These include website presence, digital transactions, and advanced technologies like IoT and AI. The index categorizes businesses into five stages of digital maturity, from “Elementary” to “Ideal.”
According to the study, the percentage of SMEs with advanced digital readiness, has tripled from 12% in 2020 to 32% in 2024. Indeed, half of the surveyed businesses prioritize digital transformation and actively support their employees through technological changes. Nevertheless, while more businesses are adopting advanced digital technologies such as IoT (Internet of Things), AI, and Data Analytics, their use is often limited to basic applications, rather than more complex processes to improve decision making or customer relationship.
Another key finding from the report is that, that while businesses seem to be aware of the importance of cybersecurity, with most having adopting some form of digital security solutions, 8 out of 10 SMEs rely on basic antivirus software.
The use of digital marketing tools, such as social media campaigns, has increased by 27%, while the adoption of alternative communication channels, like Viber, has risen by 29%. By contrast, traditional tools like teleconferencing have seen a decline (31%), as businesses return to in-office work post-COVID-19.
The report indicated a growing e-commerce sector among Greek SMEs, with 37% of online stores now generating more than 10% of their total sales through digital platforms. Additionally, the adoption of integrated systems, such as ERP (Enterprise resource planning) and CRM (customer relationship management), increased by 50% with more businesses turning to cloud-based solutions to manage their resources and customer relationships.
The study also found that 7 out of 10 SMEs experienced increased sales (69%) and reduced costs (58%) thanks to digital technologies. Of those that reported sales growth, 38% saw increases of more than 20%, while 26% of businesses reported cost reductions exceeding 20%.
Despite the benefits, SMEs still face significant obstacles in their digital journey. The main challenges include financial limitations (44%), lack of support from technology providers (36%), insufficient awareness (34%), and inadequate employee training (27%). While half of SMEs acknowledge that their employees lack the necessary digital skills, only 30% are investing in relevant training programs.
Interestingly enough, while 70% of SMEs cite financial constraints as the primary barrier to adopting digital technologies, only 25% have taken advantage of available funding and subsidies.
