SMEs

In many years of working with Small and Medium Enterprises (SMEs), scientists, technology startups, and international organizations, KisStartup has observed a paradox: the resources for innovation are abundant yet fragmented and disconnected. On one side, scientists and tech startups possess many research results with great potential, but they struggle to find market opportunities, lack a real-world testing environment, and often face commercialization barriers. On the other side, SMEs and cooperatives—which account for an overwhelming proportion of Vietnam's economy—lack the capital, human resources, equipment, and knowledge to invest in internal R&D. Yet, they have an urgent need: to innovate technology to enhance product value and meet the increasingly stringent market demands for quality, traceability, and green standards.

An Ecosystem-based Approach from Observation

KisStartup does not pursue a single-track approach but builds an ecosystem approach, where each program serves as a "piece" to complement and test various ideas.

• From LIF Global: KisStartup partnered with the Royal Academy of Engineering (UK) to support scientists in commercializing their research findings. Through this, KisStartup clearly saw the gap between the laboratory and the market—and realized that many technologies could solve very specific problems for SMEs if a reliable bridge existed.
• From IDAP (Inclusive Digital Acceleration Program): KisStartup implemented digital and green transformation models for SMEs in Lào Cai and Sơn La. It was through these field trials that KisStartup recognized the value of treating SMEs not just as "technology recipients," but as co-creation partners—involved from the testing, feedback, and adjustment phases.

These observations led to a crucial realization: for technology to truly have an impact, an intermediary mechanism is needed to help SMEs access technology in a flexible, low-cost manner, while simultaneously helping scientists and startups find a testing ground and initial market. This is the premise for the R&D outsourcing model.

KisStartup's Commercialization Services and Ecosystem

Based on this practical experience, KisStartup designed and operates the R&D outsourcing service as a "technology commercialization hub." SMEs do not have to invest in a complete internal R&D apparatus; they only need to describe their innovation needs, or the problems they face in production or the market. KisStartup then connects them with suitable scientists, tech startups, and technical experts, while ensuring a safe and reliable testing environment.

The distinctive point of KisStartup's approach is the emphasis on trust. In the Vietnamese context, where technology transfer often faces skepticism between parties, KisStartup builds trust through transparent mechanisms, accompanying training, product inspection, and initial commercialization support. As a result, SMEs trust that they are not "buying risk," and scientists/startups trust that their technology will not be wasted.

The practical implementation within IDAP clearly illustrates this: from plum-drying technology that prevents farmers from price drops, tea made from discarded old bamboo leaves, to organic washing liquid from surplus fruit. All demonstrate that with a "reliable bridge," small technological ideas can become products that truly create economic and environmental impact.

Why R&D Outsourcing Suits Vietnamese SMEs

In the global SME landscape, R&D outsourcing has been proven to bring numerous benefits: cost savings, shorter time-to-market, expansion of technological capabilities, and risk reduction (ReAnIn, 2024; Cognitive Market Research, 2023). Research in Europe shows that outsourcing SMEs generate 28% more new product ideas compared to firms relying solely on internal R&D (Un, 2018). A survey in Slovenia recorded that 32% of SMEs adopt R&D outsourcing, mainly at the applied research stage to quickly bring products to market (Hojnik & Rebernik, 2012). These figures reflect a global trend—SMEs do not need to own the entire research capability but can still innovate by leveraging networks of experts and intermediary organizations.

Specific Benefits	Percentage of Benefiting SME
Cost Saving	68%
Shorter Time-to-Market	44%
Flexible Scaling	53%
Access to Technology/Experts	74%
Risk Sharing	37%
Increased New Ideas	+28%

For Vietnam, this is even more significant as the majority of small and medium enterprises operate in agriculture, processing, and handicraft—sectors with many by-products, technical bottlenecks, but also great opportunities to apply low-cost, simple-process technologies to increase value. By playing an intermediary role, KisStartup both fully exploits the technology of scientists and startups and turns the innovation needs of SMEs into a driving force for commercialization.

KisStartup's ecosystem approach—connecting observations from LIF, piloting through IDAP, and scaling into the R&D outsourcing model—shows a viable way to promote innovation in Vietnam. SMEs benefit because they are no longer excluded from the technology game due to resource constraints; scientists and startups gain confidence and a real-world market; and local communities gain greener, more sustainable products. This model not only facilitates faster, less risky commercialization but also gradually forms a reliable innovation environment where knowledge, technology, and the market meet for the development of greener, more efficient businesses.

© Copyright belongs to KisStartup. The content was developed within the framework of the IDAP project – Inclusive Digital Acceleration Program. Any form of copying, citation, or reuse must credit KisStartup/IDAP.

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Small and medium-sized enterprises (SMEs) account for approximately 90% of all businesses worldwide and contribute to over 50% of total employment (OECD, 2025). In the context of climate change, energy crises, and intense market competition, technology adoption among SMEs is no longer solely about growth but also about ensuring long-term sustainability. Current technology trends revolve around two main pillars: digital transformation and green transformation. These are not separate processes; rather, they are increasingly intertwined to optimize costs, boost revenues, and meet the international market’s demand for greener operations.

Digital Technologies: Optimizing Costs and Revenue

Digital technology has become a survival foundation for SMEs. Technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and Big Data are being widely applied to automate processes, optimize supply chains, and enhance production management. According to SMEscale (2025), AI can help SMEs reduce operational costs by up to 60% while doubling revenue through data-driven business optimization. Another popular application, blockchain, enhances transparency and security in financial transactions, cutting transaction and management costs by 5% to 15% (Desicrew, 2025).

Meanwhile, fintech and open banking make it easier for SMEs to access financing—particularly green finance at lower interest rates—while improving cash flow forecasting (Desicrew, 2025).

Table 1. Application of Digital Technologies in SMEs

Technology	Main Benefits	Estimated Impact
AI, IoT, Big Data	Automation and process optimization	Reduces waste by 20–30% (Nhân Dân, 2024)
Blockchain	Financial transparency	Cuts transaction costs by 5–15% (Desicrew, 2025)
Fintech & Open Banking	Cash flow management and green finance access	Lowers borrowing costs, improves forecasting (DTSVN, 2024)

 

Green Technologies: The Foundation for Sustainable Competitiveness

In parallel with digitalization, green transformation has become inevitable. Technologies such as renewable energy (solar, wind, hydropower), eco-friendly materials, and smart energy management systems are being increasingly adopted by SMEs worldwide. Deloitte (2025) forecasts that renewable energy will account for 30% of SMEs’ technology investment portfolios in the U.S. and Europe. SG Analytics (2025) emphasizes that green technologies not only reduce energy costs by 10–25% but also strengthen compliance with international export standards.

From a management perspective, many SMEs have integrated carbon emission monitoring and material circularity systems into their production processes. This not only ensures environmental compliance but also builds distinctive brand value.

Table 2. Application of Green Technologies in SMEs

Green Technology	Main Benefits	Estimated Impact
Renewable Energy	Reduces energy costs	Cuts 10–25% of energy expenses (SG Analytics, 2025)
Recycled Materials	Compliance with export standards	Enhances international reputation (Emerald VC, 2025)
Emission Management	Carbon monitoring	Meets ESG and VSS requirements (EY, 2025)

 

Practical Insights from Vietnam

In Vietnam, the combination of digital and green transformation has yielded tangible results. According to the Vietnam Financial Times (2024), adopting both digital and green technologies has helped SMEs save 4–15% in production costs while increasing revenue through expanded digital sales channels and compliance with traceability requirements—essential for exporting agricultural products to the EU and the U.S. (EPMA, 2024).

For example, many coffee and cashew enterprises have applied blockchain to enhance supply chain transparency, while using IoT to monitor cultivation areas and ensure “deforestation-free” standards (Nhân Dân, 2024). Applications like ERP, CRM, and e-commerce platforms have not only improved customer management but also expanded online markets, boosting revenue by 15–20% (ITIF, 2025).

Key Insights

According to the World Economic Forum (2025), by the end of 2025, at least 30% of SMEs worldwide will implement digital and green technologies as part of their sustainable growth strategies. The OECD (2025) also highlights that governments are increasingly issuing regulations requiring businesses to comply with green standards—particularly within global value chains.

For SMEs, the key takeaway is not to chase technology blindly. Instead, technology strategies must originate from internal needs: optimizing costs, improving productivity, enhancing governance, and meeting green standards. This is the only way SMEs can both survive and thrive in an increasingly competitive global landscape.

The growing technological demand among SMEs worldwide is moving in two main directions: digitalization and green transformation. These trends complement each other, helping SMEs optimize costs, boost revenue, and build sustainable advantages. For Vietnam, this represents an opportunity for SMEs to not only improve operational efficiency but also integrate more deeply into global value chains through technological innovation.

© Copyright belongs to KisStartup. Any form of reproduction, quotation, or reuse must cite KisStartup as the source.

References
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https://desicrew.in/5-game-changing-financial-tech-innovations-to-look-o...

Deloitte. (2025). Renewable energy industry outlook. Retrieved from

https://www.deloitte.com/us/en/insights/industry/renewable-energy/renewa...

EPMA. (2024). Opportunities and challenges of Vietnam’s green transition in the digital transformation process. Retrieved from 

https://epma.vn/co-hoi-va-thach-thuc-chuyen-doi-xanh-cua-doanh-nghiep-vi...

ITIF. (2025). How digital services empower SMEs and start-ups. Retrieved from

https://itif.org/publications/2025/08/27/how-digital-services-empower-sm...

Nhân Dân. (2024). The digital-green linkage. Retrieved from

https://nhandan.vn/moi-rang-buoc-so-xanh-post907401.html

OECD. (2025). Government at a glance 2025: Governing for the green transition. Retrieved from 

https://www.oecd.org/en/publications/2025/06/government-at-a-glance-2025...

SG Analytics. (2025). Green technology innovations. Retrieved from

https://www.sganalytics.com/blog/green-technology-innovations/

SMEscale. (2025). Small business AI revolution: 10 proven ways SMEs are using artificial intelligence. Retrieved from

https://smescale.com/small-business-ai-revolution-10-proven-ways-smes-ar...

Vietnam Financial Times. (2024). Growth drivers for Vietnamese enterprises from digital and green transformation. Retrieved from 

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World Economic Forum. (2025). The future of jobs report 2025. Retrieved from

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Digital transformation (DX) has become a matter of survival for Vietnamese enterprises, especially SMEs. However, according to recent surveys, the process faces a series of challenges: high investment costs, lack of digital human resources, limited technological infrastructure, reluctance to change, and the absence of a clear strategy. Only 7.6% of businesses have a well-structured digital transformation plan, while 48.8% have experimented with some solutions but failed to sustain them (Annual Report on Business Digital Transformation, 2022).

In this context, universities – with their combined roles in education, research, and knowledge connection – hold great potential to become strategic partners of enterprises in digital transformation. To support universities wishing to engage more deeply in enterprise digital transformation and to leverage their strengths, KisStartup presents a detailed analysis based on Hồ Tú Bảo’s six-step digital transformation framework. For each stage, corresponding university actions or programs are proposed to highlight their role as knowledge transfer hubs within the digital transformation ecosystem.

1. Awareness and Mindset Change

• Enterprise needs: Most SMEs lack a clear understanding of what digital transformation means or what practical benefits it brings. Many believe it simply means “buying new software.” The biggest barrier lies in management mindset and fear of change. According to a 2025 nationwide survey, 69% of businesses only use email or basic accounting software, without adopting more strategic digital solutions (Ministry of Science and Technology, 2025).
• What universities can do: They can organize awareness workshops, publish research reports on technological trends, or develop Digital Maturity Assessment tools to help SMEs evaluate their readiness. This model is common across Europe and feasible in Vietnam. With academic credibility, universities can better persuade business leaders who often distrust private service providers. International example: European universities have developed Digital Maturity Assessment Tools for SMEs.

2. Defining a Digital Transformation Roadmap

• Enterprise needs: SMEs often lack clear strategies or plans. Many initiatives are abandoned midway, causing waste. According to the Ministry of Planning and Investment (2023–2024), micro and small businesses face particular difficulties due to limited capital, human resources, and technical capability.
• What universities can do: Faculties of economics, IT, or management can develop digital readiness assessment frameworks and offer consulting services to build 6-month to 3-year roadmaps tailored to business size. Final-year students can participate as “junior digital consultants,” gaining practical experience while supporting companies.International example: University of Vaasa (Finland) successfully implemented an ecosystem-based digitalization model for local SMEs, yielding mutual benefits.

3. Building Digital Capabilities

• Enterprise needs: The lack of skilled personnel is the most critical barrier. The Enterprise Development Agency (2023) reported that most SMEs lack adequately trained staff to implement digital solutions effectively. External expert services are often unaffordable.
• What universities can do: Design short-term, hands-on training courses using real company data and workflows—for example, training business owners in basic data analytics, marketing staff in digital campaign management, or accountants in data security. International example: IE University (Spain) and Banco Santander launched the “Digitaliza tu negocio” program, providing digital skills training to over 3,000 SMEs. Vietnamese universities can replicate this through short-term certificate programs and online training for broader reach.

4. Identifying Core Technologies

• Enterprise needs: Amid countless ERP, CRM, AI, and IoT solutions, many SMEs struggle to choose the right technology. Wrong decisions lead to wasted investment. Moreover, their infrastructure is often weak and lacks proper devices, software, or cybersecurity systems.
• What universities can do: IT or engineering schools can establish digital technology laboratories where businesses can test solutions before purchasing. Universities can also host technology showcase events featuring multiple vendors, acting as independent technology advisors. International example: The Hartree Centre (UK) partners with universities to let SMEs experiment with AI and supercomputing before making investment decisions.

5. Implementation and Execution

• Enterprise needs: During implementation, challenges arise not only in technology but also in change management: data cleanup, process adaptation, and employee resistance. SMEs often lack mentors to accompany them through the process.
• What universities can do: Deploy research teams, faculty, and students to accompany companies in pilot phases, acting as “light PMOs.” Universities can also establish co-living collaboration models where both sides share costs and co-develop technology applications. International example: Germany’s Mittelstand 4.0 program has proven effective by organizing workshops and coaching SMEs to apply agile and design thinking methods to reduce implementation risks.

6. Business Model Transformation and Operational Adjustment

• Enterprise needs: After applying technology, SMEs must adjust their business models and operations. This is the hardest step, involving organizational culture and long-term strategy. Most Vietnamese SMEs lack experience in using data-driven insights to adapt their models.
• What universities can do: Conduct local SME case studies, organize peer-learning sessions, and support data analysis on customer feedback to help companies refine products, sales channels, and pricing strategies. International example: Utrecht University (Netherlands) collaborated with consulting firms to digitally transform management and learner experience systems—proving that model transformation must be data-driven.

Surveys in Vietnam show that SMEs face major obstacles: high investment costs, shortage of skilled personnel, reluctance to change, weak infrastructure, and lack of clear strategies. In this context, universities have the potential to become strategic pillars—training digital talent, providing applicable knowledge, connecting businesses with technology, and accompanying them throughout the digital transformation journey.

If leveraged effectively, Vietnamese universities can go beyond teaching students to become digital transformation hubs for SMEs, directly contributing to the sustainable development of the national digital economy.

Summary Table

 

Digital Transformation Step (Hồ Tú Bảo)	Vietnamese SME Needs	What Vietnamese Universities Can Do	International Example
1. Awareness & Mindset	Unclear about DX; 69% using only email/accounting tools	Organize mindset-opening workshops; create readiness assessment tools; publish trend reports	European universities’ Digital Maturity Tools
2. Roadmap Definition	Only 7.6% have formal plans; many abandon efforts	Develop readiness frameworks; offer roadmap consulting; involve student consultants	University of Vaasa (Finland) ecosystem-based model
3. Capability Building	Lack of digital workforce; high training costs	Short-term practical courses; “learn by doing” projects; student-SME support bank	IE University (Spain) & Banco Santander – “Digitaliza tu negocio”
4. Core Technology Selection	Hard to choose solutions; weak infrastructure	Build digital labs; host technology showcases; act as neutral advisors	Hartree Centre (UK) AI & HPC testing
5. Implementation	Lack of mentors; employee resistance; messy data	Faculty-student support teams; co-living collaboration models; mentor programs	Mittelstand 4.0 (Germany) agile workshops
6. Business Model Change	Hard to shift culture; lack of data-driven decisions	Conduct local case studies; analyze customer data; foster innovation networks	Utrecht University (Netherlands) management digitalization

 

© Copyright KisStartup. Developed within the IDAP Project – Strengthening an Inclusive Digital Transformation Ecosystem. Any reproduction, quotation, or reuse must cite the source: KisStartup/IDAP.
Source: https://qnu.edu.vn/vi/hoi-nghi-hoi-thao/bai-noi-chuyen-dai-chung-chuyen-...