Recorded live for the first time at the 7th Digital for SMEs (D4SME) Roundtable, this special episode is hosted by Shayne MacLachlan and Alix Philouze. While 61% of SMEs report using AI, three quarters remain beginners, highlighting a gap between adoption and confidence. Joined by entrepreneurs Regitze Vestergaard Jacobsen, Robyn Baker and Leonardo Baggiani, the discussion explores how small businesses are experimenting with AI, managing cyber risks, navigating costs and skills gaps, and protecting jobs, identity and the human touch. A candid, on the ground conversation to explore what matters most to entrepreneurs facing these challenges today.
Transcript
Welcome to OECD podcasts where policy meets people.
Shayne
Hello and welcome to OECD podcasts. I am Shayne MacLachlan, joined by my co-host Alix Philouze. We both work at the OECD and we are delighted to welcome you as we dive into behind-the-scenes intel from entrepreneurs.
Alix
Thank you, Shayne, and thank you all for joining us for what is, to our knowledge, the first ever OECD podcast with a live audience. We are recording live from this year’s D4SME Roundtable, where all kinds of stakeholders meet to discuss how to support SMEs on their digital journey.
In the middle of these important policy discussions, we wanted to take a step back and focus on the people that these policies affect in the first place, the entrepreneurs themselves.
So please join me in welcoming our panelists.
Alix
Our first panelist, Leonardo Baggiani, a Florentine entrepreneur and former chef who, after navigating the challenges of the pandemic, transitioned from the kitchen into full-time business management. He now oversees two cafés in the heart of Florence.
Leonardo
Thank you.
Shayne
Thank you Alix and Leonardo.
Our second panelist is Regitze Vestergaard Jacobsen. She is Sales and Marketing Manager in two small hotels in Denmark, where she works with digitalisation and the use of AI to enhance customer experience and business performance. Welcome, Regitze.
Alix
Our third and final panelist is Robyn Baker. Through her business, Unicorn Copy and Strategy, Robyn provides companies with written and visual content to help them successfully launch on e-commerce platforms. Welcome, Robyn.
Alix
Before we start, let us start with a quick icebreaker. In five words or less, why did you become an entrepreneur?
Regitze
To save time and support human service.
Leonardo
For me, I enjoy creating things, and I really like helping people make their lives more enjoyable.
Robyn
My five words are opportunity, independence, excitement and growth.
Shayne
Brilliant. The OECD has just released a new report, Empowering SMEs in the Age of AI, this report explores the results of this year’s Digital for SMEs survey. Some of you in the room may have taken part. This analyses some interesting trends in SME journeys.
It also shows that while AI is already used by SMEs, with 61 percent of firms reporting the use of AI, around three quarters are still AI novices, which is the distinct majority. Most firms use only simple off-the-shelf tools for very specific tasks.
My first question to the panel is: Do you use AI in your day-to-day work, and if so, how do you see that use evolving in the coming months?
Regitze, may we start with you?
Regitze
Yes, absolutely. We use AI in our hotels mainly to improve customer service and experiences. For example, we use it to create personalised offers, improve our website in multiple languages, and support marketing decisions.
Going forward, I see AI becoming a natural part of our daily operations. It helps us make faster decisions and communicate better with guests, but, as we heard earlier, while still keeping the human element.
Leonardo
In our case, as a microbusiness, we are very late to this topic. At the moment, we are taking our first baby steps into AI and honestly we are doing all the wrong things that this morning we discussed together.
We use in the wrong way tools such as ChatGPT and Gemini to speed up tasks like improving menus and internal protocols, or replying to online reviews, and analysing customer feedback. More recently, we have started using AI tools to create simple graphics for menus, which have actually become quite decent.
We are now considering software that integrates AI for invoice checks and analysis of purchasing and suppliers.
Robyn
On my side, in order to ensure that my content is ready for digital launches, I also have to make sure it is optimised for AI. What better way to do this than for an AI I developed myself for that purpose.
We have the ones that are active on e-commerce platforms, and these systems are constantly learning from market trends and consumer behaviour. That means I need to remain very vigilant and continuously update my tools to ensure my work remains efficient and launch-ready.
Alix
Thank you. Another key finding from the survey, and one that has come up repeatedly today, is that despite increased digital intensity, SME digital security readiness remains limited.
Of those surveyed, nearly half of SMEs report having no or only minimal cybersecurity measures, and over one fifth have already experienced a digital security breach.
Given how important cybersecurity is, what measures have you put in place, and what kind of support would help you strengthen them?
I think we might start with Leonardo.
Leonardo
Well actually, not one. We do have encrypted systems for electronic payments, and the data collected through our cash register software is encrypted.
We pay for what we believe is fairly advanced software, but we actually don’t have any explicit business action in cybersecurity.
Robyn
Cybersecurity is incredibly important for me because I work directly with vendor accounts for my clients, which is highly sensitive information.
I need to be very careful about network security, and I use biometric authentication and additional safeguards to access accounts. Only authorised people can access that information.
More broadly, I would really like to see stronger security features, such as two-factor authentication, for AI tools and chat platforms such as Chat GPT, where sensitive information can sometimes be shared.
Regitze
For smaller businesses, cybersecurity can feel very complex. We trust on systems provided by governments.
What would really help SMEs is simpler guidance, trusted recommendations, and practical step-by-step support.
As a hotel, we experienced a large-scale cyber incident about five years ago that affected many hotels across Europe, including ours. We were without systems for several weeks, which is extremely disruptive for a small hotel. Since then, we have relied heavily on external guidance and expertise.
Shayne
Really good, thanks. So, we’ve seen cost and time pressures are a major barrier to digital adoption. Maintenance costs, hardware expenses and limited training time are frequently cited.
Regitze, have you seen these challenges first hand, or any other factors that have hindered your companies and two small hotels in digital adoption. Maybe you can make the link to tourism?
Regitze
Absolutely. Time and cost are major constraints in our industry. Daily operations always come first, which makes development difficult to prioritise.
Another key barrier is simply not knowing where to start, which tools to trust, and whether they will actually create value for the business.
Leonardo
For us as well, we are used to seeing more problems than opportunities in the team. The financial barrier is significant. Margins in restaurants are very tight. Software systems such as ERP or CRM tools that include AI can represent 20 or 30 percent of our earnings, which makes them feel like a major risk or even an unreachable luxury.
Also, the time barrier. Small businesses are often one man shows. I am very multitasking and know which sponge is used for which cleaning task, even if I also work in management. There is also a noticeable skills gap, both among entrepreneurs and employees, when it comes to understanding and choosing digital tools.
Robyn
And to the first question, I have definitely seen SMEs struggling with digitisation and AI adoption. Many business owners are so focused on day-to-day operations that they cannot find the space to explore how AI could improve efficiency.
My business was digital from the start, but even then it is important to develop internal systems early to ensure smoother scaling later on.
Alix
Thank you. Our final topic is government support. Only 16.5% of SME’s report in the survey that they are benefiting from public support for digitalisation, and many say they are simply unaware of what is available.
So in this vein, would you share your own experiences. If you did receive some, was it easy to access? And any messages you would like to pass on to policymakers?
Robyn
One hundred percent. So, I reside in the Netherlands and it’s where my business is incorporated. I really appreciated how the government explained it to me as if I was ten years old. websites explaining how to start a freelance business were extremely clear and simple, as if I was 10 years old. And available in both Dutch and English.
There are tax allowances and deductions for new businesses that help offset start-up costs, which is very reassuring. A very common concern for entrepreneurs is there is not enough time in the first year of running a business to keep up with income tax reporting. There is also an entrepreneurship allowance based on hours worked rather than profits, which makes a big difference for people starting out.
Overall, my experience has been very positive.
Regitze
I have also had a positive experience through initiatives such as Moving Destinations in Denmark, which is supported by national business development programmes and helps SMEs understand and apply AI in a very practical way.
However, many SMEs are simply not aware of these opportunities or do not have the time to engage with them. So, my message will be to make support simpler, more visible, and easier to access.
Leonardo
Unfortunately, I must say I am not so positive. In Italy, we have some support for digitalisation of business. But for someone like me with a completely different background, the application process can be difficult to understand.
We might need is education and skills support. I just found the example in Tuscany and Florence that helps with that. But, I still can’t find places to help with education in my businesses. It must be cheap too, but unfortunately, I don’t know how to do that. Growth is often assumed to be the goal, but that is not always true. Many small businesses don’t necessarily want to grow and want to remain small and sustainable.
Shayne
That’s brilliant, thanks so much to all of your for your insights which will help inform the rest of todays discussion at D4SME.
Thank you all, and to the floor for the interesting questions. Unfortunately, this is all the time we have, but thanks to the audience and the entrepreneurs again.
It’s a great reminder that these policies affect people first hand, which is the core mission of the OECD. Do read our report and visit our website at oe.cd/D4SME.
Until next time, this is Shayne MacLachlan and Alix Philouze, and this has been an OECD podcast.
Alix Philouze is a communications co-ordinator at the OECD Centre for Entrepreneurship, SMEs, Regions and Cities, where she works with both the SME and Entrepreneurship division and the Cities, Urban Policies and Sustainable Development division. She holds a degree in European Studies from Trinity College Dublin.
As Public Affairs and Communications Manager, Shayne engages with policy issues concerning SMEs, tourism, culture, regions and cities to name a few. He has worked on a number of OECD campaigns including “Going Digital”, "Climate Action" and "I am the future of work".
A former Chef, Leonardo Baggiani transitioned to management to ensure business resilience. Leveraging an Agronomy degree and Food Quality Master, he directs cultural-site cafés through public-sector collaborations. His human-scale approach prioritizes staff well-being, promoting the vital social essence of traditional neighborhood hubs also in tourist areas.
Robyn Baker is an entrepreneur based in The Netherlands who loves supporting small businesses succeed on competitive eCommerce marketplaces. Through her business Unicorn Copy & Strategy, she provides the written and photo content needed to launch products online with a focus on AI optimization to maximize product visibility and brand growth.
Regitze Vestergaard Jacobsen is a Sales and Marketing Manager in the Danish hospitality sector at Hotel Gl. Skovridergaard and Conference Center, where she works hands-on with AI to turn digital potential into real business value. She focuses on saving time, personalising guest experiences, and improving visibility. Her core belief is clear: technology should support people, not replace them, and be simple enough for SMEs to actually use.