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Micro and small enterprises (MSE) play a critical role in the Swiss economy but had no meaningfully adopted working from home (WFH) policy before the COVID-19 crisis. The timing of the study’s data collection allowed a unique assessment of Swiss MSEs’ adoption of WFH enabled by the adoption of digital technologies due to the first government-mandated COVID-19 lockdown. The study also set out to assess the permanence of any changes in the adoption of WFH by MSEs after initial government COVID-19 restrictions ended.

The study uses a threefold theoretical framework combining social, technical and spatial dimensions. Data were collected via telephone interviews. The utilised sampling frame included 153,000 small businesses with 4–49 employees, and the realised sample for the study was 503 interviews with MSE owners and managing directors (MDs).

The Swiss government’s COVID-19 crisis lockdown policies accelerated the digital transformation of work by employees in Swiss MSEs by increasing the number of employees WFH. However, the number of MSEs with WFH employees decreased after the first lockdown ended. Small business leadership is an important influence on the persistence of any increases in WFH.

The data collection uniquely captures the effects of externally driven digital transformation of work in small businesses by the adoption of WFH. The findings show that small businesses can rapidly learn new ways of working and support the claim that Swiss MSE MDs play a critical role in the adoption of WFH. They also confirm the importance of digital leadership and culture for realising the potential of WFH in small businesses.