Digital Adoption in Micro and Small Firms in Uruguay

This paper examines digital technology adoption among micro, small and medium size enterprises (MSMEs) in Uruguay, leveraging a unique database from the Check-Up Tool administered by the Agencia Nacional de Desarrollo (ANDE, Spanish acronym). It provides a comprehensive landscape of digital technology adoption by MSMEs in Uruguay and explores whether micro and small firms follow similar adoption patterns as larger firms, with findings suggesting sector- and technology-specific variations. For instance, micro and small firms in digitally intensive sectors adopt computers at comparable rates to large firms, but they lag significantly in E-commerce adoption due to challenges like insufficient managerial practices and limited training opportunities. This study highlights critical policy implications, emphasizing the need for targeted support to address skill gaps and enhance digital diffusion among smaller firms.