Opportunities and Challenges for the Digitalization of MSMEs in Colombia

Abstract

In recent years, digital transformation has become an opportunity for Micro, Small, and Medium-sized Enterprises (MSMEs) to enhance their competitiveness and adapt to an increasingly digitized business environment. This study aimed to analyze the degree of digitalization and the level of digital maturity of Colombian MSMEs, as well as to understand the factors that promote or hinder their digitalization. Information was collected from 3708 companies of various sizes and sectors. The study revealed that Colombian MSMEs have a low level of digital maturity in basic technologies, primarily adopting social networks, digital banking, and commercial websites. Similarly, there is a very low level of maturity in advanced technologies, with the implementation of ERPs and technologies such as Localization and the Internet of Things being highlighted. Medium-sized companies and those in the service sector stand out in the adoption of digital technologies. Awareness of the possibilities and advantages of digitization, along with training for executives in these areas, are among the most widely implemented digitization strategies by the studied companies. Noteworthy barriers to digitization in these enterprises include insufficient broadband connectivity, high investment costs, and a shortage of financial resources.