Choosing an ERP for a small or medium business is no longer simply a technical decision. It has a direct impact on financial accuracy, team productivity, and how quickly a company can adapt to new regulations or customer demands. According to a 2023 report from Software Path, SMEs spend an average of €7,200 in the first year of ERP implementation, and the most expensive part is often not the software. The hidden cost is the time spent learning it, customizing it, and recovering from errors.
This is why many SMEs do not necessarily need the most complex ERP. They need one that is efficient, modular, and financially sustainable. Below are three ERP solutions that consistently prove effective for small and medium-sized businesses in Europe and beyond, and the reasons why they work.
1. Dolibarr ERP
Dolibarr is an open-source ERP and CRM widely adopted by SMEs and freelancers. Its strongest advantage is modularity. A company can activate only what it needs: invoicing, inventory, HR, project management, or accounting. Because it is open source, costs are predictable and generally lower than proprietary tools. Companies can self-host it or use a cloud version depending on their internal skills.
Dolibarr is increasingly popular in French-speaking countries and Europe due to its active community and constant updates. Companies appreciate that they can improve automation gradually by adding small modules instead of rebuilding their workflow.
2. Odoo
Odoo is another open-source option, but positioned slightly differently. While Dolibarr aims to remain lightweight, Odoo offers a large ecosystem of applications that resemble enterprise-level systems. Odoo can manage commerce, production, logistics, accounting, marketing and more. This gives it a strong appeal for SMEs that are planning fast growth. However, customization and deployment costs can sometimes be higher due to the need for specialized consultants.
A study from TechTarget in 2024 indicates that Odoo’s implementation cost can vary from €4,000 to €50,000 depending on customization. For some SMEs this is justified, but for others it may exceed their operational needs.
3. ERPNext
ERPNext has gained recognition among manufacturing and service-oriented SMEs. Its strength is strong inventory, production and maintenance features built into the core system. Many industrial SMEs choose ERPNext because it focuses on operational workflows rather than simple administrative management.
However, ERPNext requires more technical knowledge to host, customize and maintain. Without an internal technical team, SMEs often need external support, which can increase costs over time. Its adoption is growing, especially in Asia and emerging markets, but remains less widespread in Europe.
Choosing the Right ERP for an SME
No ERP is universal. The most effective choice depends on company size, industry, internal skills and how much automation is required. Some companies need a tool that intelligently manages production or logistics. Others simply need reliable invoicing and financial workflows without complex deployment. What matters most for SMEs is to choose an ERP that can start small, automate progressively, and avoid expensive over-engineering.