In Europe, many small businesses that have been passed down through generations are finding it tough to keep up in today’s digital world. A study by Mastercard found that these family-owned shops and companies might get left behind as everything moves online.
Most small businesses in Europe are family-owned, especially the small ones with less than 10 workers. Even though these businesses make up almost all companies in Europe, only about 37% of them feel fully ready for the digital age.
The research investigated how these small businesses are dealing with the shift to a more digital economy and society. It included responses from over 10,000 businesses, both family-run and not. The findings showed that family businesses are trying to adapt by using more digital payment methods since the COVID-19 pandemic started. Yet, many are still unsure about what digital tools or tech would be best for them.
About 41% of these family businesses want new digital tools to modernize, but nearly 30% said depending on the internet is a big obstacle. Some family members are also resistant to change, especially the older generations, making it hard to try new things. Family dynamics, like figuring out who will take over the business, can also add to the challenge.
Even with these hurdles, family-run businesses are generally positive about their future and think they will grow. However, without finding the right way to modernize and handle family issues, they could fall behind their more tech-savvy competitors.
Mastercard’s president in Europe, Mark Barnett, mentioned that small businesses are crucial for Europe’s economy and have shown great ability to overcome difficulties. But to keep competing, these family-run businesses might need extra help to embrace digital changes. Mastercard is aiming to provide that support with various tools and resources for small businesses to navigate the digital landscape.
