Digital Transformation in Small and Medium Enterprises (SMEs): Challenges and Opportunities

Abstract

The digital transformation (DT) of Small and Medium Enterprises (SMEs) is crucial for their competitiveness and growth in the 21st century. This paper explores the challenges and opportunities associated with the digital transformation process in SMEs, highlighting how technology adoption can enhance operational efficiency, customer engagement, and overall business performance. Although SMEs face significant barriers such as limited financial resources, inadequate digital skills, and resistance to change, digital transformation also offers numerous opportunities to drive innovation, improve decision-making, and open new market avenues. This research discusses key strategies for overcoming challenges and maximizing the potential benefits of digital transformation for SMEs.