DIGITAL TRANSFORMATION IN SMALL AND MEDIUM ENTERPRISES IN DEVELOPING ECONOMIES: CHALLENGES AND OPPORTUNITIES

Digital transformation has become a critical driver of economic growth and competitiveness in developing economies, particularly for small and medium enterprises (SMEs). This article examines the key challenges and opportunities associated with digital transformation in SMEs across developing countries. Based on analysis of international reports, academic studies, and institutional data, the study identifies infrastructural limitations, financial constraints, and skills gaps as primary barriers. At the same time, increased access to digital platforms, financial technologies, and global markets provides significant opportunities for SME growth. The findings highlight the importance of policy support, capacity building, and technological investment in accelerating digital adoption.