WHY SMALL BUSINESSES FAIL AT DIGITAL TRANSFORMATION — AND HOW TO FIX IT
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Despite contributing up to 70% of global employment and GDP, small and medium-sized enterprises (SMEs) face serious challenges in the digital transformation process. Research indicates that 70% of digital transformation projects fail, and according to Bain & Company’s 2024 analysis, this figure may reach as high as 88%. This article analyzes the key barriers to digital transformation in SMEs — including financial constraints, lack of technical skills, organizational inertia, infrastructure deficiencies, and cybersecurity risks — based on reports and statistical data published between 2020–2025 by international organizations such as OECD, McKinsey, World Economic Forum, and Bain. The findings demonstrate that investing in technology alone is insufficient for successful digital transformation — a comprehensive approach combining financial support, improved digital literacy, and strategic leadership is required.
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