The Impact of Digital Transformation On Small and Medium Enterprises (SMEs) In The USA: Opportunities and Challenges

• Author(s): Reena Faisal ; Carl Selasie Amekudzi ; Samira Kamran ; Beryl Fonkem ; Obah Tawo; Martins Awofadeju
• Paper ID: 1705274
• Page: 400-413
• Published Date: 30-12-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 6 December-2023

Abstract

This paper discusses the impact of digital transformation on small and medium enterprises (SMEs) in the United States, both the opportunities it opens up and the challenges it poses. SMEs play a critical role in contributing to economic growth, yet many SMEs still lag behind larger firms in their adoption of digital technologies due to limited resources and technical barriers, among other things. This study highlights these benefits of digital transformation for SMEs — better operational efficiency, stronger customer relationships and wider market access — through a review of existing research. But it also highlights serious challenges, including high costs of implementation, cybersecurity risks and a lack of digital expertise. The study employs a mixed-methods approach, collecting insights from stakeholders of SMEs to gain a deeper understanding of the practical challenges and potentialities of digital adoption. The two however (surely for all SMEs), have one major caveat: Truly maximizing the opportunity presented by digital tools is considerable but many SMEs struggle to adopt these tools, largely constrained by finances and skills. The paper calling for focused approaches to support SMEs against these challenges — including government assistance, tailored training programs, and better co-operation between the public and private sectors. Overcoming these obstacles can enable SMEs to leverage the full potential of digital technologies, enhancing their competitiveness and sustainability in an increasingly digitalizing economy. The last pointers will focus on how to bridge the digital gap and promote digital transformation across the SME landscape.

Keywords

Digital Transformation, Small and Medium Enterprises (SMEs), USA, Opportunities, Challenges

Citations

IRE Journals:
Reena Faisal , Carl Selasie Amekudzi , Samira Kamran , Beryl Fonkem , Obah Tawo; Martins Awofadeju "The Impact of Digital Transformation On Small and Medium Enterprises (SMEs) In The USA: Opportunities and Challenges" Iconic Research And Engineering Journals Volume 7 Issue 6 2023 Page 400-413

IEEE:
Reena Faisal , Carl Selasie Amekudzi , Samira Kamran , Beryl Fonkem , Obah Tawo; Martins Awofadeju "The Impact of Digital Transformation On Small and Medium Enterprises (SMEs) In The USA: Opportunities and Challenges" Iconic Research And Engineering Journals, 7(6)