Hans Praat discusses how to support small and medium enterprises (SMEs) in becoming smart factories under Industry 4.0. He presents two examples: 1) a joined transition initiative involving 40 partners and pilot projects to develop model-based product design and autonomous manufacturing, and 2) a shared smart factory that provides an alternative to in-house or outsourced manufacturing, optimized for high-mix/high-volume production of smart products for SMEs and startups. The smart factory offers customized, on-demand manufacturing within hours using modular, robotized processes that businesses control themselves.