Abstract
The U.K. Small Business Digital Capacity Programme Challenge Fund 2014 aimed at disseminating information and training about the use of digital technologies among SMEs. Using a novel firm-level dataset of web technologies, our matched differences-test strategy shows that, following the implementation of the program, treated SMEs were more likely to increase their web presence, adopted more sophisticated web technologies, and enlarged their operating boundaries through e-commerce. The program reduced the digital divide between SMEs and large companies and enabled digitalization in more geographically remote locations. As a result, firms observed positive effects on performance, labor outcomes, and likelihood of survival.

Maria Marchica is Professor of Finance at the Alliance Manchester Business School with an Economic background. She has regular visitings in Cornell University and TAU in Israel. Her research contributions are mainly in empirical corporate finance and governance with papers published in Journal of Finance, Review Financial Studies, Journal of Corporate Finance, among others. Her research explores how investment and financial decisions are affected by shareholders' and managerial incentives; financial contracting; financial constraints and other market frictions.