The Impact of Digital Transformation on Small and Medium Enterprises (SMEs)

Abstract

Digital transformation has emerged as a critical driver of innovation and competitiveness across various industries, with a profound impact on Small and Medium Enterprises (SMEs). This paper explores the transformative effects of digital technologies on SMEs, investigating how they adapt, evolve, and thrive in the rapidly changing business landscape. The study employs a multidimensional approach to assess the impact of digital transformation on SMEs, considering technological, organizational, and societal dimensions. It investigates the adoption of digital technologies such as cloud computing, big data analytics, artificial intelligence, and the Internet of Things, and analyzes their implications for SMEs in terms of efficiency, productivity, and market competitiveness. Furthermore, the research delves into the organizational changes that accompany digital transformation, examining how SMEs restructure their processes, workforce, and business models to leverage emerging technologies effectively. The paper also explores the challenges and barriers that SMEs face during the digital transformation journey, including issues related to investment, skills, and cyber security.