Technology and depopulation in rural areas: Can connectivity sustain SME performance?

Abstract

This study examines whether access to next-generation telecommunications infrastructure, such as 5G, can mitigate the adverse effects of depopulation on the performance of SMEs located in rural areas. The adoption of digital technologies associated with Industry 4.0, including big data analytics, cloud computing, and artificial intelligence, enables firms to optimize processes, enhance competitiveness, and ultimately improve profitability. However, depopulation may hinder digital transformation by limiting access to adequate telecommunications infrastructure in rural areas. In this context, the study offers a new perspective on how environmental conditions and local resources shape economic activity. Using quantitative analysis, the findings show that advanced connectivity is not merely a technical improvement but a critical factor capable of offsetting the adverse effects of depopulation on business performance. These results provide important insights into the resilience of rural SMEs and offer a strategic basis for the design of development policies in depopulated areas.