THE LEVEL OF DEMAND FOR DIGITAL TRANSFORMATION AMONG SMALL BUSINESSES AND THE KEY CHALLENGES

Abstract

This study examines the level of demand for digital transformation among small businesses and identifies the key challenges associated with its implementation. Digital transformation is regarded as an important factor in enhancing business efficiency, optimizing operational costs, strengthening competitiveness, and adapting to evolving market conditions. The study explores the role of digital technologies, including electronic payment systems, e-commerce platforms, cloud computing, customer relationship management (CRM) systems, enterprise resource planning (ERP) systems, and data analytics tools, in improving the operational performance of small businesses. Particular attention is given to the financial, technological, informational, and institutional factors influencing digital transformation. These include access to financial resources, the development of digital literacy, the availability of technological infrastructure, financing opportunities, and the provision of qualified specialists. The study also emphasizes the importance of institutional reforms, government support programmes, tax incentives, and improved lending mechanisms in facilitating the digital development of small businesses. Special consideration is given to the development of the trade and information and communication technology (ICT) sectors at both the national level and in Samarkand Region. The study highlights that successful digital transformation requires not only access to digital technologies but also their effective integration into core business processes, the enhancement of managerial competencies, and the establishment of a supportive institutional environment. Strengthening these areas can contribute to the sustainable development, increased productivity, and improved competitiveness of small businesses within the evolving digital economy.