Driving Digital Innovation: Opportunities and Recommendations

Micro, small, and medium enterprises (MSMEs) drive ASEAN economies, comprising 97 percent of private sector businesses, 85 percent of the workforce, and 45 percent of regional GDP. Yet despite their economic importance, many MSMEs face a range of structural barriers to participating in the region’s growing digital economy due to fragmented policies on advancing digitization, limited access to affordable and relevant training, and scarcity of digital infrastructure and financing.

With funding from Google.org, Google’s philanthropic arm, The Asia Foundation designed and implemented the Go Digital ASEAN initiative to address these challenges by expanding digital skills participation across the region, reaching individuals and communities with the most to gain from digital literacy.

In 2020, the ASEAN Coordinating Committee on Micro, Small, and Medium Enterprises endorsed the program. Since its launch, it has trained more than 400,000 individuals, 60 percent of whom are women, across its two phases. By providing targeted, practical training, Go Digital ASEAN empowers aspiring and established entrepreneurs to navigate the digital landscape with greater confidence.

Over the program’s life, MSMEs improved their understanding and ability to use online tools, deepened their financial knowledge, and enhanced their resilience against cyber threats, enabling them to unlock their digital potential and grow their businesses and revenues. By increasing sales, boosting financial inclusion, and opening access to new markets, this knowledge also contributed to broader economic recovery, job creation, and reduced dependence on aid.

This report provides an overview and key outcomes of the program, drawing insights from its impact on MSMEs and offering recommendations to inform future digital training initiatives and policy development across the region.