Adoption of digital innovations in rural enterprises during COVID-19

Abstract

The COVID-19 pandemic has rapidly affected the operating conditions of companies. Traditional customers and operational models are changing radically in the short term. Digitalization and digital methods provide an opportunity to reorganize working methods and create a new kind of business to replace old methods and business models. Compared to urban businesses, rural businesses have less experience with digital tools and are less likely to adopt digital innovations; this makes rural businesses especially vulnerable. The purpose of this study was to provide insight into how microenterprises 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 particularly emphasized microenterprises and was based on survey data collected in Finland in the spring of 2020.