The digital economy accounts for a larger share of the overall economy in low-friction countries than it does in high-friction countries.

#1 The Internet economy—as a percentage of GDP—in a country in the top quintile of the BCG e-Friction Index is more than twice as large, on average, as that of a country in the bottom quintile.

#2 Because the digital economy is growing quickly (often outpacing the offline economy), high e-friction countries are in danger of missing out on a high-impact propellant of growth and job creation.

#3 High-friction countries that address their sources of e-friction have the potential to add significant value to their economies.

The countries with the lowest e-friction tend to score well in all four components.

#1 Their infrastructures are strong, and their supportive business and regulatory environments have created vibrant Internet economies.

#2 At the other end of the scale, problems related to basic access, price, and speed are widespread, as are shortcomings related to capital, labor, and consumers’ ability to conduct business online.

If e-friction is reduced, small and midsize enterprises (SMEs) will perform better in the digital economy.

#1 SMEs that are heavy Web users are almost 50 percent more likely to sell products and services outside of their immediate region and 63 percent more likely to source products and services from farther afield than are medium or light Web users.

#2 SMEs encounter friction from a range of sources that slow or prevent them from fully exploiting the Internet’s potential. The biggest single concern for SMEs is the protection of consumer data online—a prevalent issue for consumers as well.