How Ready Are Cypriot SMEs for the Digital Economy?

Join the DiFiCy Project’s Research Survey

Do you want to generate valuable insights into the future of digital transformation in Cyprus? If yes, we want to hear from you!

The research project “DiFiCy – Digital Transformation and FinTech: Shaping Cyprus’s Economy” aims to investigate how digital transformation and financial technology (FinTech) influence the development of the Cypriot economy, with particular emphasis on Small and Medium-Sized Enterprises (SMEs), innovation ecosystems, and sustainable economic growth. The project examines the opportunities and challenges associated with digital technologies, digital readiness, FinTech adoption, innovation capacity, and business competitiveness within Cyprus.

It is coordinated by the University of Limassol and specifically Dr Snezana Eminidou and implemented in collaboration with PwC Cyprus and Unity Growth Limited. The project is co-funded by the European Union through the “THALIA 2021–2027” Programme through the Research and Innovation Foundation (RIF) of Cyprus.

Based on evidence from the literature review conducted during the first months of the project implementation it is evident that Cyprus has made notable progress in its digital transformation journey. Academic studies highlight that technologies such as cloud computing, artificial intelligence, data analytics, digital platforms, and digital financial services can improve operational efficiency, reduce transaction costs, facilitate access to finance, and support business resilience. At the same time, the literature emphasises that successful digital transformation depends not only on technological infrastructure but also on factors such as digital skills, access to finance, regulatory quality, cybersecurity, organisational readiness, and innovation capacity.

The review indicates that Cyprus has made notable progress in areas such as digital infrastructure, enterprise digitalisation, e-commerce, and digital payment adoption. However, important challenges remain, including shortages of specialised digital talent, access to growth finance, cybersecurity concerns, and differences in the extent to which businesses (particularly SMEs) adopt advanced digital technologies. While many SMEs have embraced basic digital tools, the adoption of more advanced technologies such as artificial intelligence, data analytics, and sophisticated cloud-based solutions remains relatively limited.

Importantly, the literature review also revealed significant research gaps regarding how businesses in Cyprus adopt digital technologies, what barriers they face, and how digital transformation influences innovation, competitiveness, and growth. Addressing these gaps is a key objective of the DiFiCy project.

Our preliminary findings suggest that while Cyprus is becoming increasingly capable of adopting digital innovations, further efforts are needed to strengthen business competitiveness and support long-term economic growth.

To better understand these opportunities and challenges from the perspective of the business community, the DiFiCy consortium is currently conducting a nationwide survey targeting organisations operating in Cyprus. The findings will contribute to scientific publications, analytical reports, and evidence-based policy recommendations aimed at supporting the country’s digital transition and strengthening the competitiveness of Cypriot businesses.

If you are an owner, manager, executive, entrepreneur, or employee involved in organisational decision-making, we warmly invite you to participate in the survey. The questionnaire consists primarily of multiple-choice questions, takes approximately 10-15 minutes to complete, and all responses will be treated with strict confidentiality.

Your participation will contribute to research that supports innovation, SMEs, and sustainable economic development.

Join our research and help shape the future of Cyprus’s digital economy.

Access the DiFiCy Project Survey