Digital Transformation in Small Enterprises: Technology Adoption, Barriers, and Growth Opportunities

Authors

  • Romandhon Universitas Sains Al-Qur'an
  • Fella Yunita Universitas Sains Al-Qur'an

Keywords:

SMEs, digital transformation, technology adoption, competitiveness, sustainability, innovation, infrastructure barriers

Abstract

Small and medium-sized enterprises (SMEs) are increasingly recognized as key drivers of digital transformation, particularly through their ability to adopt and integrate emerging technologies to improve operations and strengthen competitiveness. This study explores the extent to which SMEs implement digital tools to optimize business processes, enhance customer satisfaction, and promote innovation. A review of relevant literature was conducted to identify the main benefits and obstacles associated with digital adoption. Findings indicate that SMEs often encounter considerable challenges, such as limited financial capacity, insufficient technological knowledge, inadequate infrastructure, and shortages of skilled personnel. Despite these constraints, evidence suggests that digital transformation provides substantial advantages, including improved efficiency, greater adaptability, sustainability, and the ability to deliver customized services that meet evolving market demands. Furthermore, technology integration supports broader sustainable development goals by balancing economic growth with social and environmental responsibilities. However, adoption remains inconsistent, largely due to the absence of strategic direction and a lack of awareness regarding long-term benefits. The study concludes that SMEs must overcome these barriers through targeted policies, investment in skills, and improved infrastructure to fully realize the transformative potential of digital technologies (Philbin et al., 2022).

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Author Biographies

  • Romandhon, Universitas Sains Al-Qur'an

    Economics and Business Faculty

  • Fella Yunita, Universitas Sains Al-Qur'an

    Economics and Business Faculty

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Published

2025-11-06

How to Cite

Digital Transformation in Small Enterprises: Technology Adoption, Barriers, and Growth Opportunities. (2025). Future Economics and Business Studies, 1(1), 34-49. https://ejournal.garudarisetid.co.id/febs/article/view/46