Adoption of digital innovations in rural enterprises during COVID-19

Abstract

The COVID-19 pandemic has rapidly affected the operating conditions of enterprises. Traditional customers and operational models are changing radically in the short term. Digitalisation and digital methods provide an opportunity to re-organise working methods and create a new kind of business to replace old methods and business models. Compared to urban enterprises, rural enterprises have less experience with digital tools and are less likely to adopt digital innovations. This makes rural enterprises especially vulnerable. The purpose of this study is to provide insights into how micro-enterprises and small and medium-sized enterprises in rural areas have addressed the COVID-19 pandemic, the digital solutions they have adopted, and the kinds of challenges they have faced. This study puts particular emphasis on micro-enterprises and was based on survey data collected in Finland in the spring of 2020.