Policies and Programs to Stimulate Digital Transformation Among SMEs: Where Do We Go from Here?

Abstract

To stimulate digital transformation among SMEs, institutions and governments have developed and implemented many policies and programs. This chapter reviews existing policies and programs, assesses their effectiveness, and develops policy recommendations. Our findings suggest that these policies and programs facilitate digital transformation among SMEs by accessing finance, training and upskilling, upgrading the infrastructure, building a supportive regulatory framework, and creating knowledge networks. Moreover, these programs seem to be limited to East Asia & Pacific, Europe & Central Asia, and South Asia regions, whereas policies and programs in Africa, Middle East & North Africa, and Latin America & the Caribbean are still missing. Furthermore, these programs are short-lived and unmonitored. As a result, the outcomes of these programs remain unknown. This chapter suggests that new policies and programs should not be grant-driven but quality-driven, should not change with the change of technologies and/or policymakers, and should be monitored.