EXPLORING THE IMPACT OF DIGITAL TRANSFORMATION ON SMALL ANDMEDIUM-SIZED ENTERPRISES (SMES) IN SELECTED FIRMS IN ANAMBRA STATE

Abstract

This study investigates the impact of digital transformation on Small and Medium-sized Enterprises (SMEs) in developing economies, focusing on the challenges, opportunities, and policy implications for SME growth and development. A mixed-methods approach is employed, combining surveys of 300 SMEs with in-depth interviews of 10 business owners in elected SME organisations in Anambra State. The findings reveal significant relationships between digital transformation, innovation, and SMEs’ competitiveness, which improve customer engagement and increase access to new markets. However, infrastructure constraints, skills gaps, and regulatory barriers hinder the adoption of digital solutions. This study identifies key drivers of digital transformation for SMEs, including cloud computing, big data analytics, and social media. It also emphasizes the significance of government support, infrastructure development, workforce development, and training in facilitating digital transformation. Policy recommendations are provided to address the challenges and leverage digital transformation for inclusive economic growth.    These include investing in digital infrastructure, promoting digital literacy, and implementing policies that foster innovation and entrepreneurship. This research contributes tothe understanding of digital transformation’s impact on SMEs in developing economies, informing policymakers, practitioner,s and scholars.