What are digitally native SMEs?

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Javier Ortiz Follow

Reading time: 3 min

It depends on who you ask. In Spain, based on size and turnover, many fit perfectly into the ‘SME’ category. But if you’re in the tech world — and even more so if you come from an international background — it’s natural to talk about phases: start-up, scale-up and, in some cases, unicorn.

I like to explain it this way because it helps to understand the ‘vital moment’ of each company. A startup is in trial-and-error mode, seeking to match product and market. A scaleup has already found that formula, and now the challenge is different: to industrialise growth. And a unicorn… well, at that point, you’re not just growing: you’re also being watched more closely, demanded more of, and everything you do has more impact, for better or for worse.

But the important thing is this: being digitally native is not about size, it’s about DNA. It’s how they are born and how they think.

How do they differ from other types of SMEs?

The main difference is heritage. A traditional SME usually comes with processes that have been in place for years, tools that have been added ‘as best they could’, and a lot of manual work.

A digital native, on the other hand, usually starts with lighter structures, more collaborative teams, a culture of teleworking… and a healthy obsession with measuring everything. Not because they are ‘more modern’, but because it is the natural way they have learned to compete.

I like to use a simple metaphor: it’s like learning a language as a child versus as an adult. In the end, you can speak it the same, but fluency changes the pace of everything.

What are their main characteristics?

There are very clear patterns. They tend to be companies with:

  • Innovation as something natural, not as a separate project.
  • Data-driven decisions, or at least the real intention is for it to be that way.
  • Flat structures, with teams that coordinate quickly.
  • A strong customer focus, with personalised digital experiences.
  • And a very ‘digital-first’ culture: flexibility, remote working and distributed teams.

And beware: all of this is an advantage… but also, when they grow, it becomes a challenge. Because what gives you speed at the beginning sometimes complicates your life when you multiply your business tenfold.

What are the benefits of this type of company?

The star benefit is the combination of agility + scalability. They can launch things quickly, measure quickly and correct quickly. And that, in changing markets, is gold.

Furthermore, as they have no baggage, they can question industry rules without asking permission. That ability to ‘rewrite how things are done’ is what explains why many digital natives end up being benchmarks.

How are they adapting to the emergence of new technologies?

In general, very naturally. They are used to testing, iterating and moving quickly. AI, for example, is seen as a very direct lever: productivity, automation, personalisation, customer support… all of which fit very well with the way they operate.

The important nuance is the same as always: adopting is easy; governing is difficult. As they grow, the question shifts from ‘which tool should we try?’ to ‘how can we do it well, safely, with control and with a focus on the business?’ And that’s where they often need a partner to help them professionalise, organise and scale without losing speed.

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