An Empirical Analysis of the Digital Presence of SMEs: From Strategic Investment to Real Business Outcomes

Abstract

This paper explores how digital presence affects the business results of Bulgarian small and medium-sized enterprises (SMEs). Based on data from a computer-assisted web interview/survey of 268 active SMEs conducted between March and May 2023, the study measures digital presence through four components - corporate email, website, social media activity and e-commerce, and tracks their relationship to annual turnover. Pearson's correlations show statistically significant relationships - having a company website has the strongest correlation with turnover, while a corporate email account contributes an additional explanation for about 20% of the variation in revenue. The results of a simple linear regression confirm that the mere fact of owning a website explains approximately a quarter of the variation in turnover, which emphasizes that online infrastructure is a strategic resource rather than a peripheral marketing tool. Despite almost universal broadband coverage, over 70% of Bulgarian SMEs remain in the “very low” category on the Digital Intensity Index, highlighting substantial untapped potential. The findings support resource‑based and digital‑transformation theories, showing that even basic online tools increase visibility, customer engagement, and operational efficiency, which translates into measurable financial benefits. The significance of the findings extends beyond Bulgaria, as it indicates that SMEs in emerging markets can build competitive advantage through incremental and cost-effective digital improvements. The paper recommends developing management skills, continuous data-driven optimization and targeted policy incentives to accelerate the digitalization of SMEs and strengthen national competitiveness.