The Impact of Digital Transformation on Small and Medium Enterprises (SMEs) in Latin America

Abstract

Digital transformation is reshaping small and medium enterprises (SMEs) across Latin America by improving efficiency, competitiveness, and customer engagement. This study explores how digital adoption—such as e-commerce, cloud computing, and automation—affects SME growth in Argentina and Brazil. The research highlights challenges such as digital skill gaps, financial constraints, and cybersecurity risks. Findings indicate that while digitalization enhances market reach and operational efficiency, government support and training programs are essential to bridge the digital divide. The paper provides recommendations for policymakers and business owners to accelerate digital transformation in the SME sector.