STRATEGIES FOR ENHANCING SMALL BUSINESS COMPETITIVENESS IN THE DIGITAL ECONOMY
Abstract
The digital economy has become a defining driver of global economic transformation, reshaping production, trade, and business models across all sectors. For small and medium-sized enterprises (SMEs), digitalization is no longer optional but essential to remain competitive in an increasingly technology-driven marketplace. This paper explores theoretical and analytical perspectives on strategies for enhancing small business competitiveness within the digital economy. It synthesizes academic literature, international reports, and policy frameworks that address digital transformation and SME development. The research highlights that digital competitiveness depends not only on technology adoption but also on institutional readiness, digital literacy, innovation capacity, and supportive government policies. The findings suggest that the successful integration of digital tools—such as e-commerce platforms, artificial intelligence (AI), cloud computing, and data analytics—enhances productivity, market reach, and customer engagement for small enterprises. The paper further emphasizes the need for digital infrastructure, policy incentives, and capacity-building programs to foster sustainable SME growth. Ultimately, the study offers a conceptual framework and policy recommendations for developing countries, including Uzbekistan, aiming to strengthen their small business sectors through digital transformation.
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