Digital transformation has become an important factor in strengthening Micro, Small and Medium Enterprises (MSMEs) in the modern digital economy. The adoption of digital technologies such as cloud computing, e-commerce, digital payments, automation, artificial intelligence, and data analytics helps MSMEs improve productivity, operational efficiency, and market competitiveness. Digital tools enable enterprises to automate routine tasks, reduce operational costs, and make data-driven decisions. Through digital platforms, MSMEs can expand their market reach beyond geographical boundaries and enhance customer engagement. However, despite these advantages, many MSMEs face challenges in adopting digital technologies due to limited digital literacy, inadequate infrastructure, high cost of technology, and cybersecurity concerns. This paper examines the role of digital transformation in strengthening MSMEs and highlights its impact on productivity, efficiency, and competitiveness. The study is based on secondary data collected from research articles, journals, and government reports. The paper concludes that digital transformation is essential for the sustainable growth of MSMEs, and proper support through government initiatives, training programs, and improved digital infrastructure is necessary for successful adoption.
Padmja Chandrashekhar Kulkarni (Tue,) studied this question.
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