EXPLORING THE DIGITALIZATION ISSUES CONFRONTED BY SMALL ENTERPRISES

Micro, Small, and Medium Enterprises (MSMEs) are widely recognized for their vital contribution to sustainable
and inclusive development, particularly through their role in employment generation and national economic
growth. In the context of a rapidly evolving digital economy, the sustained growth and resilience of MSMEs
increasingly depend on their capacity to adopt and integrate digital technologies. This study examines the
digitalization challenges confronted by small enterprises. Using a qualitative research design, six participants
were purposively selected based on asset classification and level of digital technology adoption. Thematic analysis
of the interview data revealed five significant challenges: (1) the persistence of manual processes and hybrid
operational practices; (2) workforce adaptability gap; (3) infrastructure and digital system constraints; (4) financial
and trust barriers in digital systems; and (5) enablers of digital readiness. The findings highlight that while small
enterprises recognize the potential benefits of digitalization, structural constraints and capacity limitations
continue to hinder full adoption. The study emphasizes the importance of targeted capacity-building programs,
affordable digital solutions, and supportive policy interventions in promoting the inclusive and sustainable
digitalization among small enterprises.