Digital transformation as a driver for sustainable development of small and medium-sized enterprises

Abstract

This article examines the critical barriers to the digital transformation of Ukrainian small and medium-sized enterprises (SMEs), based on an analysis of statistical data from the last fifteen years. The main issues identified include the disparity between existing digital infrastructure and innovative enterprise activity, the difference between capital expenditure and investment in research and development, and the insufficient use of ICT for environmental practices. The dynamics of enterprise profitability and the structure of innovation costs are analysed. The article substantiates the role of European digital innovation hubs as a mechanism for overcoming the identified gaps through technological consulting, training, and ecosystem cooperation. Tools for integrating green-digital technologies to boost the international competitiveness of SMEs are also suggested.