TITLE:
Analysis of the Current Situation and Problems of Digital Transformation of Micro, Small and Medium Enterprises in the Context of Digital Economy
AUTHORS:
Yongtao Zhou, Jiahao Song
KEYWORDS:
Digital Transformation, Small and Medium-Sized Enterprises, Digital Technology, Current Problems
JOURNAL NAME:
Open Access Library Journal,
Vol.12 No.8,
August
12,
2025
ABSTRACT: Against the backdrop of the digital economy’s rapid evolution, the digital transformation of small and medium-sized enterprises (SMEs)—a pivotal driver of China’s economic growth, employment stability, and GDP contribution—has emerged as an imperative agenda. This study employs a questionnaire-based methodology to examine the current landscape and inherent challenges pertaining to the digital transformation of SMEs in China. The survey instrument encompasses 11 items, addressing domains such as operational and managerial bottlenecks, the deployment of digital technologies, assessments of digital transformation efficacy, and the underlying rationales for pursuing such transformation, upon which the research framework is constructed. The empirical findings indicate that Chinese SMEs generally suffer from inadequate cognition of digital transformation, underdeveloped foundational capacities, and multifaceted impediments. Specifically, during the course of digital transformation, SMEs encounter critical challenges including prohibitive costs, ill-defined strategic pathways, and talent scarcity. Moreover, significant heterogeneities across different categories of SMEs exacerbate the complexity of their digital transformation endeavors. In light of these observations, this paper puts forward a set of policy recommendations from a governmental standpoint, aiming to accelerate the digital transformation of SMEs. These recommendations entail the formulation of a suite of enterprise-oriented policies, the development of intelligent platform ecosystems, the sustained advancement of new infrastructure projects, and the establishment of mechanisms to integrate technological resources and talent supply with SME needs.