Publication

Urban-rural differences in the impact of digitalisation on SME survival

Published: 31 March 2026

ERC Insight paper

Associated Themes

• 
  Business Growth
• 
  Entrepreneurship
• 
  Productivity and performance

---

We investigate urban-rural differences in the role of pre-pandemic digitalisation in the survival of small and medium-sized enterprises (SME) through the pandemic. Survival analysis on a geocoded panel of British SMEs from 2015 to 2022 reveals that digital inputs increased survival, but the effect is restricted to urban areas. In urban areas, this effect is comparable in size to that of government Covid-19 subsidies, while in rural areas only subsidies were effective at reducing exit. The benefits of digitalisation are not evenly spread among SMEs and digital policy should take these urban-rural differences into account.

Downloads

---