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Study: 57% of small and medium companies in all sectors recorded order or contract cancellations due to pandemic

57% of small and medium companies in all sectors recorded order or contract cancellations because of the pandemic, while 35% of small companies showed the pandemic had a significant impact on demand and incomes, a study made by Vodafone Group shows. According to it digitization was a key factor which determined the crisis effect on small companies.


Vodafone recently presented a study which involved 1,200 small and medium companies from several European countries, made since the beginning of pandemic to July 2020,in order to better understand the main challenges facing these companies and the way in which digitization was the basis of small company resilience during the pandemic crisis.


Many small companies were faced with significant barriers in the adoption of digital services, the study shows. Chances that these companies took advantage of the new technologies are still too small compared to those of big organizations, even if they are connected to the Internet to the same extent. Despite the benefits of digitization, data of DESI 2020 report show that small companies are behind large companies in the adoption of almost all technologies.


The biggest differences are in the digitization of internal organization processes, where the most can be won by digitization.


According to the Vodafone study, there is a series of reasons for which small and medium companies had difficulties in digitization. 73% declared that they met difficulties in implementing new technologies, integration with existing technologies and business processes, migration from old systems and withdrawing old technologies.


51% said they had difficulties in identifying the right technologies or the right supplier, while 38% of small and medium companies said they needed support through training courses. 29% indicated the cost of investments in digitization as a barrier when they took into account  these changes.


Research shows that national governments must take into account the challenges with which small and medium companies face in the digitization process and should adopt a clear frame of digitization policies for small companies which should approach  differences for the availability of instruments and technologies needed for digitization – high speed connectivity and adequate instruments and services.


Reducing digital differences is therefore an opportunity for decision makers who should approach this reality,” the authors of the study say.


Vodafone Romania is a division of Vodafone Group, one of the largest suppliers of telecommunication services and technology in the world.