Blog author: Lietuvos Socialinio Verslo Asociacija (LISVA)
In today’s digital age, the ability to effectively use technology is crucial for organisations that support social enterprises. Digitalisation not only enhances operational efficiency but also expands outreach, allowing enabling organisations to maximise their societal impact. In Lithuania, Social Economy Enabling Organisations (SEEOs) play a vital role in empowering social enterprises. However, how well are they leveraging digital tools? What challenges do they face, and what support do they need to advance their digital capabilities?
This overview explores the current state of digitalisation among SEEOs in Lithuania, drawing on data not only from the recent DO Impact initiative survey but also from other relevant sources and insights available in the country. The findings indicate that while some organisations have made significant strides in adopting digital solutions, others are still struggling to keep up. This highlights the ongoing journey towards full digital integration, revealing considerable room for growth and development.
Situation overview
In Lithuania, SEEOs face several challenges in terms of digital transformation. The main challenges include:
- Lack of financial and human resources: Many SEEOs are small or medium-sized enterprises that often lack the necessary funds and specialists to implement new technologies. This makes it difficult to integrate advanced digital solutions, such as artificial intelligence or data analytics tools, into their operations (Source: Ministry of Economy and Innovation of the Republic of Lithuania (EIMIN).
- Lack of legal frameworks and standards: Legal changes often lag behind technological innovations, which can create uncertainty about the adoption of new solutions. Additionally, there is not always adherence to common EU-wide recognized standards when implementing technological solutions (Source).
- Lack of digital skills: While Lithuania places a significant focus on digital skills development, there is still a shortage of specialists who can effectively implement and manage advanced technologies within the SEEO sector (Source).
In the Lithuanian context, these challenges reflect the overall digitalization issues faced by SMEs – there is often a lack of financial and human resources to implement digital transformations (EIMIN). Nevertheless EIMIN provide Additional Funding for Business Digitisation Projects – in 2024 EIMIN has increased funding for business digitization projects, allocating over EUR 18 million to support 545 projects that have been positively evaluated. This initiative aims to strengthen the e-commerce and services sectors by enabling businesses to implement digital solutions for online transactions, product and service visualization, and configuration, thereby enhancing their competitiveness and resilience. (Source)
Also to improve the situation, several strategies have been implemented:
- National Digital Decade Plan: This plan sets out the country’s digital transformation priorities and actions, focusing on digital skills development, secure and sustainable digital infrastructure, digital transformation of enterprises and digitisation of public services. The plan is based on the European Union’s Digital Decade Programme and provides specific objectives and measures in each area. (Source).
- Economic Recovery and Resilience Plan “New Generation Lithuania“: This strategy focuses on economic recovery after the COVID-19 pandemic, with an emphasis on environmental sustainability and digital transformation. The plan provides for investments in digital technologies to increase the resilience and competitiveness of the economy. (Source).
- Guidelines for the digitalization of education: In order to ensure that the education system meets the requirements of the digital age, guidelines have been developed covering hardware and software, digital content creation, improving teachers’ digital competencies, and infrastructure development.(Source).
- EU Funds Investment Programs: Lithuania participates in various European Union financial programs dedicated to digital development. These programs provide financing for projects related to the implementation of digital technologies, innovation, and business digitization.
- Lithuanian Industrial Digitalization Roadmap 2020–2030: The aim is to integrate advanced technologies into the industrial sector, promoting innovation and competitiveness (Source).
Digital Maturity: Where Do Lithuanian SEEOs Stand?
The DO Impact survey, which gathered responses from 50 organisations across 13 countries, including Lithuania, paints a diverse picture of digital maturity. Digital transformation is underway, but progress is uneven. More than a half Lithuanian organisations report an intermediate level of digitalisation, indicating regular use of digital tools for marketing, customer management, and basic data tracking. However, these tools are mostly limited to essential functions, and deeper integration with advanced technologies is still lacking.
Meanwhile, 35% of organisations are at a basic level, relying on fundamental digital tools such as email, office suites, and simple task management platforms. These organisations have yet to explore more sophisticated digital solutions that could enhance their operational efficiency. Only 5% of SEEOs have reached an advanced stage of digitalisation, where technology is fully integrated across all operations, leveraging automation, data-driven decision-making, and AI-powered tools.
These findings indicate that the majority of SEEOs are in the intermediate phase of digitalisation. To fully unlock the potential of digital technology, a strategic shift towards advanced digital integration is needed. This transition will require targeted support, strategic investment, and a focus on capacity-building to enhance digital capabilities.
Moving Forward: Embracing Digital Transformation
The survey’s findings highlight that while digital transformation is underway among SEEOs in Lithuania, there is still a long way to go. The majority of organisations are at an intermediate level of digitalisation, and only a small fraction have reached advanced integration. By embracing more sophisticated technologies and data-driven approaches, SEEOs can significantly enhance their efficiency, impact, and resilience in an increasingly digital world.
However, the journey towards advanced digitalisation requires more than just access to digital tools. It demands a strategic approach that includes capacity-building, tailored consulting, and financial support to address existing challenges. Potential solutions could include DO Impact’s Strategy:
- Capacity-building workshops focused on digital strategy, cybersecurity, and data management.
- Local digital and data-driven training programs to transition organisations from basic to advanced digitalisation.
- Sector-specific support tailored to different industries within the social economy.
Also it is important Financial support and subsidies – to encourage investment in digitalization solutions by reducing the financial burden. By investing in digital skills and fostering a culture of innovation, SEEOs can not only optimise their operations but also amplify their societal impact.
To accelerate digitalisation, the DO Impact initiative is planning transnational capacity-building workshops on funding opportunities, digital tools, cybersecurity, and data management. Local digital and data-driven programs will also be introduced to support SEEOs in their transition from intermediate to advanced digitalisation. By addressing the digital skills gaps and providing the necessary resources, these initiatives aim to empower SEEOs to fully leverage digital opportunities, driving sustainable growth and strengthening their societal impact.
As digitalisation continues to reshape the social economy, supporting SEEOs in Lithuania with the right skills, tools, and resources will be crucial for boosting innovation and driving sustainable growth. The DO Impact initiative is committed to guiding this digital transformation, empowering SEEOs to navigate the digital future with confidence and purpose.
Are you part of a Social Economy Enabling Organisation? Join us in shaping the digital future of Lithuania’s social economy!
