DIGITAL TRANSFORMATION IN SMES: CHALLENGES AND OPPORTUNITIES FOR GROWTH

Abstract

The digital transformation (DT) of Small and Medium-sized Enterprises (SMEs) has become a critical avenue for growth, operational efficiency, and competitive advantage. SMEs, despite being the backbone of many economies, often face significant challenges in leveraging digital tools due to resource constraints, lack of expertise, and resistance to change. This paper explores the multifaceted challenges SMEs encounter in their digital transformation journey, including financial limitations, inadequate infrastructure, and skills shortages. Additionally, it identifies the opportunities that digital technologies provide, such as enhanced customer engagement, improved operational efficiencies, and access to new markets. The study emphasizes the strategic role of leadership, innovation, and a gradual approach to DT, which can aid SMEs in overcoming barriers and seizing growth opportunities. Ultimately, embracing digital transformation allows SMEs to improve resilience, adapt to market dynamics, and sustain long-term business growth.