Evidence, initiatives, and recommendations exist in both the EU and the United States, but so far, there is no overview of common problems and actions taken that will be useful for both EU and U.S. companies. The Parties should therefore map access challenges that SMEs commonly experience on both sites of the Atlantic, which prevent them from realizing their full digital potential. Based on existing policy analyses, this could include:
- Mapping of levels of digital uptake, including an identification of types of SMEs or sectors and ecosystems’;
- Identifying key market entry barriers for SMEs, including administrative burdens, regulatory barriers, access to (digital) finance;
- Identifying barriers to access to digital technology and data; and
- Identifying skills, training, and education needs and gaps.
As part of this mapping of challenges and to better understand the current challenges and opportunities faced by both United States and EU SMEs, the Working Group should organize a series of roundtables/listening sessions where government officials from the EU and the United States would meet with SMEs to gather direct feedback on policy recommendations to promote SME competitiveness, innovation, and growth through digital technologies. These sessions could help create an understanding of similarities and differences related to the uptake of digital technologies across both sides of the Atlantic and help to identify common patterns. As with the mapping of challenges, topics could include technical assistance, access to capital, trade finance, and other policies that could improve market access for SMEs. These roundtables/listening sessions should not be larger than ten to fifteen companies, with participation in a hybrid in-person/remote format, to allow for detailed discussion around policy barriers that SMEs face in transatlantic trade, as well as the digital tools that SMEs can leverage.
Utilizing input from the listening sessions, case studies, and SME-to-SME workshops, the Parties should define a concrete set of agreed-upon transatlantic principles and recommendations for policy makers in the United States and the EU designed to further spur SME access to and uptake of digital technologies.
The Working Group should undertake dedicated case studies/reporting for other groups that experience specific challenges that either Party would like to prioritize.
Building on the evidence and experience gathered as part of the mapping exercise, a guide of best practices for SMEs could be compiled. The guide should focus on how to scale up innovative SME-driven business models, harness the potential of digital technology for day-to-day processes and operations, adopt useful strategies when facing market power imbalances, and genuinely empower SMEs in a digital context. It will also consider how SMEs can make best use of existing innovation infrastructures, in particular Digital Innovation Hubs in the EU and manufacturing innovation centers in the United States.
In connection with this guide, the parties should develop a series of webinars focused on areas of need for SMEs to expand their ability to innovate and do business, thanks to the adoption of digital tools. These webinars could feature government, SME, and relevant private sector representatives discussing issues important to companies in the respective markets, both tips and strategies to help SMEs succeed, government resources such as the U.S. Ecommerce Innovation Lab and the European Digital Innovation Hub, and issues relating to regulations and requirements for new exporters. And in connection with pandemic recovery, these webinars could set the stage for one or more in-person and virtual SME-to-SME business event, which would focus on the direct uptake of digital technologies to connect SMEs and help them compete through digital tools.
The Parties should offer SME-to-SME workshops. Five to ten U.S. and EU tech SME companies could be selected that are actively using digital technologies as part of their growth strategies and that have a proven record in leveraging their services. These companies could present their experiences to other SMEs on how they use digital tools to innovate, scale-up, and compete through digitization (e.g. on cloud storage/cloud computing, data analytics, process automation, AI, and blockchain). Other experts could be brought in, as appropriate, to enable SMEs to learn about increasing their global competitiveness and innovation through digital tools and services, including through emerging technologies.
The work on the roundtables/listening sessions, case studies, and SME workshops could be underway with a proposed completion date by spring 2022. The development of the transatlantic principles and recommendation, good practice guide, SME business event, and webinars could be completed by fall 2022.
Governments can help put SMEs in front of a larger community – Governments, including government resource partners, can play a key role in promoting access to and use of digital tools for stakeholders of all backgrounds, For example, governments can promote cooperation of SMEs with research institutions and industry groups to foster innovation, develop digital skills, and prevent brain drain. Governments can support a positive feedback loop by highlighting success stories and following examples of positive impact, and SMEs can seek to frame their business in the context of helping to solve, local, national, or even global societal challenges. Awareness about the potential of digital solutions is still lacking among SMEs, which is why showcasing positive examples can drive companies to start their digitalization process.
SMEs should avail themselves of government resources. Many governments are making available initiatives for stakeholders that should address the local skills gap and strengthen the overall digital ecosystem based on the principles described above. In particular:
- In the United States, the U.S. Small Business Administration has launched the Small Business Digital Alliance, a public-private partnership to help small businesses grow their online footprint through access to free digital tools. In addition, Small Business Development Centers and other SBA Resource Partners provide informational tools to support business start-ups and business expansion, through low-cost business development training for SMEs.
- In the EU, the Digital Skills and Jobs Platform provides many resources for upskilling and reskilling of the workforce, including news on funding opportunities, opinion posts, relevant learning material, and a training catalogue in digital areas. A self-assessment tool for digital skills is also available by registering to the platform. The network of European Digital Innovation Hubs or the Enterprise Europe Network provide help for SMEs to adopt digital tools in a secure way. As there is no one-size-fits all solution for digitalization, individual tailored advice provided by these organizations is relevant, including by assessing digital maturity, offering mentoring, raising awareness, and facilitating experimentation with digital tools and access to finance.
