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Let's get real about European small businesses – they're the absolute backbone of the economy, yet strangely, many high-revenue sectors remain surprisingly under-digitalized. While virtually everyone acknowledges digital transformation as essential for growth, only about 58% of EU SMEs have achieved even a basic level of digital intensity¹. That's alarmingly below the EU's 90% target for 2030.
This "cash-rich, tech-poor" situation is especially visible in traditional industries like construction, agriculture, and hospitality. These sectors contribute massively to revenue but lag dramatically in digital adoption. Construction ranks among the least digitalized sectors globally, scoring a measly 1.375 out of 5 in digital maturity². In the food and hospitality world, only about 15% of businesses have digitalized most of their activities³ – revealing enormous gaps in otherwise profitable segments.
And here's where it gets interesting: these digitalization gaps aren't just academic concerns – they represent massive missed opportunities. Studies consistently show that digital "leaders" outperform digital "laggards" by miles, achieving up to 50% higher revenue⁴ and growing three times faster than their less digitized competitors.
Belgium presents a fascinating case study within this European landscape. Belgian companies generally stay ahead of their European peers in digital maturity – an estimated 74.5% of Belgian SMEs have reached at least a basic level of digital intensity⁵, nicely above the EU average of ~58%. Belgium sits comfortably in 5th place among EU countries for integrating digital technology into business, blessed with robust connectivity and a tech-savvy workforce (80% with basic digital skills)⁶.
Yet, Belgian SMBs face similar challenges in certain sectors: local construction firms, traditional manufacturers, and many small retailers or restaurants have been slower to embrace modern digital tools. Local factors like multilingual markets, complex regulations, and a high proportion of micro-enterprises contribute to this delayed uptake.
The Belgian government recognizes these challenges and has introduced supportive measures – for instance, a fresh 20% tax deduction for digital investments (bumped up to 120% for small firms adopting e-invoicing software)⁷ – aimed at boosting digital adoption among SMBs.
Looking across Europe, the digitalization gap isn't uniform – it varies greatly by sector and region. Certain high-grossing sectors with low digital maturity present prime targets for transformation efforts. Let's look at where the biggest opportunities hide:
Construction firms are among the worst digital laggards, despite controlling massive budgets and resources. Many still rely on paper-based processes, in-person site visits for every minor change, and endless phone calls to coordinate teams.
The opportunity? Digital tools like project management platforms, mobile field apps, and Building Information Modeling (BIM) software could yield productivity gains around 15% and cost reductions close to 6%⁸. For a sector with notoriously thin margins, these numbers are game-changing.
"The construction industry has this bizarre contradiction – they'll spend millions on equipment but balk at investing thousands in software that could save them hundreds of thousands," notes a Belgian construction technology expert.
The barriers typically involve perceived complexity and resistance from field teams – but companies that get over this hump find they complete more projects in less time with fewer coordination headaches.
The hospitality sector is another curious case – despite being customer-facing, only about 15% of these businesses have digitalized most activities⁹. Many Belgian restaurants and small hotels still operate with paper reservation books, handwritten orders, and minimal online presence beyond perhaps a basic Facebook page.
During COVID-19, a striking trend emerged: half of Belgian small retailers and restaurants that previously lacked online presence quickly launched webshops out of necessity, doubling local online food sales (+110%)¹⁰. This natural experiment proved that even the most traditional food businesses could adapt quickly when motivated – and those that did reaped immediate rewards.
Simple digital tools like online booking systems, integrated point-of-sale software, and even basic customer databases can dramatically improve both operational efficiency and customer experience. The returns come quickly in the form of higher table turnover, increased average order values, and improved customer return rates.
Many medium-sized manufacturers – especially in fields like food processing, metal fabrication, and machinery parts – operate with surprisingly minimal digital infrastructure. While they may have computerized some basic accounting functions, their shop floors often remain tech deserts.
What's interesting here is that manufacturing SMEs experiencing even modest digitalization report productivity improvements from automation (cited by 40% of businesses)¹¹. Even small steps like implementing sensors on critical equipment or using cloud-based inventory management can yield outsized returns through reduced downtime and optimized production flow.
Belgian manufacturers face particularly strong incentives to digitalize due to high labor costs. Automation and digital workflow tools directly address this pressure point by allowing the same output with fewer labor hours.
If the benefits are so clear, why do these digital gaps persist? Our research identified several key obstacles that keep otherwise successful SMBs from making the digital leap:
The most common barrier cited by SMBs is cost – about 60% of European SMBs point to budget constraints as their primary digitalization obstacle¹². But there's a fascinating contradiction here: while upfront costs may seem daunting, the cost of not digitalizing often far exceeds the investment.
Take inventory management, for example. A Belgian wholesale distributor implementing barcode scanning might spend €10,000 on the system – but if that system reduces inventory discrepancies from 10% to 2%, the savings on a €1 million inventory quickly reach €80,000 annually. The ROI math isn't hard, but many business owners struggle to see beyond the initial price tag.
While Belgium boasts a digitally skilled general population, many SMBs report difficulty finding affordable specialists in areas like data analytics or cybersecurity. The skills gap becomes even more pronounced for companies needing multilingual digital experts.
Belgian SMBs often compete with EU institutions and multinational corporations for the same limited pool of tech talent. This creates a situation where even when a small business recognizes the need to digitalize, they may lack the human resources to execute their vision.
Perhaps the most stubborn barrier is cultural resistance. Many Belgian family businesses have operated the same way for generations, creating a "if it isn't broken, why fix it?" mentality. Breaking through this resistance requires demonstrating quick wins and building internal champions.
During COVID-19, necessity forced many reluctant business owners to overcome this barrier overnight. The lesson? Belgian SMBs can adapt remarkably quickly when they see direct threats or opportunities – the challenge is creating that same sense of urgency during normal times.
For all the challenges, there are plenty of Belgian SMBs that have made the digital leap and seen transformative results. Their experiences offer valuable templates for others:
A family-owned fashion boutique in Ghent with healthy pre-pandemic sales had zero online presence when COVID-19 hit. Facing potential closure, the owner rapidly deployed a simple online store using a SaaS platform and promoted it through Instagram and Facebook, targeting their existing local customers.
Within weeks, the shop was processing dozens of online orders daily. Even after reopening their physical location, online sales stabilized at about 25% of total revenue – effectively growing their business beyond pre-pandemic levels. Their customer base expanded beyond Ghent to reach shoppers throughout Flanders.
The key insight? Starting small with focused digital tools addressing an immediate need (in this case, sales during lockdown) created momentum for broader digital adoption.
A mid-sized construction contractor with 35 employees was consistently facing project delays and budget overruns due to coordination problems. They implemented a cloud-based project management system with a mobile app for field teams to report progress and issues in real-time.
The results came quickly: project delays decreased by nearly 30%, and they completed their next major project 5% under budget – a first for the company. The system paid for itself on that single project, and the company now wins more bids partly because clients trust their ability to deliver on schedule.
What made this work? They assigned a "digital champion" at each work site – typically a younger, tech-savvy team member who helped others adapt to the new tools.
Ready to close your own company's digital gap? Here's a practical roadmap that has worked for numerous Belgian SMBs:
Before investing in anything, take stock of where you stand. A simple assessment might look at:
This baseline helps identify the "low-hanging fruit" where digital tools can make the fastest impact.
Look for a digital solution that:
For retailers, this might be setting up a basic e-commerce site. For service businesses, it could be adopting online booking software. For manufacturers, it might be implementing inventory tracking.
The goal is to create momentum through early success, not to transform everything at once.
Belgian SMBs have access to numerous resources that can reduce the cost and complexity of going digital:
A smart first step is checking with your industry association to see what resources they've already vetted for businesses like yours.
You don't need to hire a full IT department to go digital. Consider these approaches:
Sometimes your best digital resource is a young family member or employee who intuitively grasps digital tools and can help guide implementation.
With upcoming regulatory changes like mandatory B2B e-invoicing by 2026, Belgian SMBs face a clear choice: proactively embrace digital transformation on their own terms, or reactively adopt minimum compliance measures when forced.
The first approach builds competitive advantage and opens new opportunities; the second merely adds cost without capturing benefits.
As one successful Belgian SMB owner put it: "The pandemic was our wake-up call. We finally did what we should have done years ago. The surprising part wasn't how hard it was – it was how easy it turned out to be once we just got started."
The biggest risk for high-earning, tech-lagging SMBs isn't investing in digital transformation – it's watching while more agile competitors do it first.
Ready to close your digital gap? Get started with a free digital readiness assessment from Cogenta.
¹ Update 2023: The development of the Digital Transformation in Belgium | FI Group Benelux
² Digital Transformation & Tech Adoption by Sector (2025) - Whatfix
³ The local shop as the winner of COVID-19? - Business and Economics
⁴ From good to great in digital: The opportunity for Belgian companies | McKinsey
⁵ Belgium in the Digital Economy and Society Index
⁶ Digital transformation among companies in Belgium 2023 - Statista
⁷ E-Invoicing in Belgium: Complete Guide for 2026 | Billtrust
⁸ Innovation and Technology Adoption in Belgium: 2025 Trends
⁹ Towards Digital Decade targets for Europe - Statistics Explained
¹⁰ The local shop as the winner of COVID-19? - Business and Economics
¹¹ Update 2023: The development of the Digital Transformation in Belgium | FI Group Benelux
¹² From good to great in digital: The opportunity for Belgian companies | McKinsey
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"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
"Cogenta transformed how we manage client relationships by implementing HubSpot, automating workflows, and providing clear business insights"
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