Innovation and Transformation: Keys to the Success of SMEs in the Digital Age

Abstract

This article examines the strategic importance of Small and Medium Enterprises (SMEs) in the global economy, emphasizing their agility and innovation alongside the challenges they encounter in adopting new technologies. SMEs, constituting 90-95% of all global enterprises and responsible for 60% of employment, contribute to GDP, economic diversification, and community development. The study reviews a broad spectrum of literature to highlight the role of emerging technologies in enhancing operational efficiency and decision-making within SMEs while recognizing significant obstacles such as financial and human resource limitations and increased cybersecurity risks. Using a mixed-methods approach, this research assesses the impact of technological advancements on a diverse range of SMEs, ensuring generalizability and reinforcing the study’s validity and reliability. It identifies a gap in empirical knowledge on technology integration and offers insights into the dual opportunities and challenges digital tools present. The findings suggest that while SMEs greatly benefit from technological progress, adequate policy support is crucial for overcoming implementation hurdles, guiding strategic technology investments, and fostering economic sustainability and competitiveness in the digital era.