Digital Skills Report: Empowering SMEs for the Digital Future

In today’s fast-paced digital world, small and medium-sized enterprises (SMEs) face mounting challenges in adapting to technological advancements and keeping up with the evolving skills required to thrive. The DigiAdvance project has been launched to address these challenges head-on, designed to bridge critical digital skills gaps identified across Europe’s SME sector. By focusing on specialised technologies like blockchain, big data, and machine learning, the project acknowledges the urgent need for advanced digital skills among employees, managers, and owners of SMEs.

DigiAdvance does more than just offer training—it begins with a comprehensive needs assessment to ensure that its educational programs are aligned with both present and future industry demands. Through this approach, DigiAdvance aims to elevate digital literacy at every level within SMEs, empowering them to innovate and stay competitive in a technology-driven marketplace.

The Report

Our latest report provides a detailed analysis of the digital skills that SMEs require today and the competencies they’ll need to succeed in the future.

This report is essential for SMEs, policymakers, higher education institutions, training providers, and government agencies, helping to close the gap between existing digital abilities and the needs of a rapidly evolving digital economy.

The analysis highlights not only the technical skills required but also the essential soft skills, providing a pathway for SMEs to navigate the digital age confidently. It reveals significant regional disparities, underscores the need for continuous training, and emphasises the value of partnerships in enhancing digital capabilities.

Some Key Insights

Disconnect on Essential Skills. There is a gap between employees’ and employers’ views on essential digital skills, underscoring the need for a balanced approach that combines both technical and interpersonal skills.

Training Barriers. Budget and time constraints are identified as major obstacles to training.

Ongoing Development Needs. There is a clear need for continuous digital skill development, measurable KPIs, and strategic public-private partnerships.

Employee vs. Employer Priorities:

• Employees recognise the importance of digital skills but may prioritize different competencies than employers.
• Emphasis on cross-cutting skills such as analytical thinking, adaptability, and resilience points to the need for well-rounded development.

Challenges for SMEs in Portugal, Ireland, and Spain. SMEs face unique challenges in securing funding and implementing training. Many rely on internal funding and government programs, though varying program durations and engagement levels highlight a need for more standardised and accessible training options.

Emphasis on Transversal Skills. Interviews reveal a strong focus on soft skills like communication, teamwork, problem-solving, and adaptability. This reflects a recognition of the importance of balancing technical skills with interpersonal skills for holistic employee growth.

Strategic Skill Priorities. Cybersecurity, AI, and data analytics are prioritized as key skills for driving future innovation.

Country-Specific Findings:

• Portugal, Ireland, and Spain all share a commitment to digital upskilling but face similar challenges like budget and time limitations.
• Each country’s distinct approaches to training effectiveness and digital priorities reflect their unique contexts and needs.

Looking ahead, DigiAdvance is dedicated to empowering SMEs through customized training programs and forward-looking initiatives. We invite you to explore the full report and join us in our mission to bridge the digital skills gap, fostering sustainable growth and innovation in the digital age.

Download the report