E-Commerce Adoption and SMEs Economic Performance in the European Union: Evidence from 2019 to 2025

Abstract

The digitalisation of small and medium-sized enterprises (SMEs) is not just a technological trend, but also a strategic path towards sustainable economic development. This study provides a comprehensive comparative analysis of SMEs digitalisation across the EU-27 during the post-pandemic period (2019–2025). The originality of this study stems from its comprehensive comparative analysis by integrating dynamic, cluster, concentration, and regression analyses, it provides updated evidence on the relationship between e-commerce adoption, enterprise turnover, and economic development, while highlighting cross-country disparities and convergence trends within the European Union. The results confirm a positive association between the adoption of e-commerce practices and enterprise economic performance, underlining the contribution of digitalisation to broader development objectives. The study provides relevant insights for policymakers seeking to strengthen digital ecosystems and support SMEs competitiveness, as well as for business managers aiming to leverage digital technologies as a source of growth and resilience. As the analysis is based on aggregated country-level data and the correlational methods, the findings should be interpreted as evidence of statistical associations rather than causal relationships and should not be directly extrapolated to individual SMEs.