DATA ANALYTICS IN SMALL AND MEDIUM ENTERPRISES

Digital technologies offer small and medium-sized enterprises (SMEs) the ability to operate more efficiently, expand globally, and access markets at lower costs. This transformation, driven by Big Data and data analytics, enables SMEs to make informed decisions, improve performance, and scale quickly without significant infrastructure. However, many SMEs face challenges in adopting digital tools, including limited resources, lack of digital skills, and concerns around data privacy and cybersecurity. These barriers often leave SMEs behind larger firms in the digital race. Additionally, rapid market changes and the rise of tech-savvy competitors increase pressure on SMEs to innovate or risk obsolescence. In response, governments are creating policies to support SME participation in the digital economy, including initiatives like the 2018 joint declaration by over 50 countries to help SMEs adopt digital tools and improve productivity. This chapter explores how data analytics can drive SME growth and innovation, while addressing the structural and policy challenges hindering full adoption. It contributes to the OECD’s 'Going Digital' initiative, which aims to promote inclusive and fair digital transformation.