From Digital Skills to Competitive Advantage: The Impact of Digital Business Training on SMEs

Abstract

Digital business transformation is increasingly shaping the operating conditions of small and medium-sized enterprises (SMEs) across all industries. In Finland, where digital services are widely used and broadband connections are reliable, customers primarily search for and use services through various digital channels, creating new demands for digital business capabilities among SMEs. However, access to technology alone does not guarantee successful digital transformation. SMEs operating in traditional sectors, in particular, often struggle to translate digital skills into concrete business development and a competitive advantage. This highlights the need for effective support models that go beyond mere access to digital tools. This paper examines the impacts of a digital business training and coaching model on business development orientation, growth and competitiveness among SMEs. Using the Digital Steps programme implemented in South Savo, Finland, as a case study, the study draws on survey data and qualitative interviews with participating companies. The target group consisted of micro-enterprises and small businesses, including sole traders operating in the service, tourism, retail and other traditional industries. The analysis explores perceived competency development, the adoption of digital tools and initial business-related outcomes, with particular attention paid to differences related to the intensity of participation. The findings indicate that combining structured training with company-specific coaching helps SMEs translate digital skills into improved marketing, customer engagement and operational efficiency. These developments are associated with perceived improvements in competitiveness and growth potential, highlighting the role of tailored digital business training in supporting SME development in a digital business environment. While the immediate effects on revenue and employment were limited, participants reported visible impacts.  Moreover, more intensive participants reported business outcomes such as access to new networks and markets and improved competitiveness, rather than merely knowledge gains or tool adoption. Overall, the findings highlight the importance of supporting SMEs’ digital development through regional business support systems that seek scalable and impactful digitalisation initiatives.