Small and Medium Enterprises (SMEs) in the Age of Digital Revolution: Navigating the Challenges and Opportunities for Sustainable Business Growth in India

Abstract

This research article aims to explore how small and medium enterprises (SMEs) navigate the challenges and leverage the opportunities provided by the digital revolution for sustainable business growth. This study aims to examine the impact of digital adoption, financing access, skilled labor, marketing competition, and government policies on SMEs’ growth sustainability. This research is based on a quantitative survey of 300 SMEs in the United States. Data analysis was conducted using structural equation modeling to test the hypotheses. The results of this study indicate that digital adoption, financing access, skilled labor, marketing competition, and government policies have a positive impact on SMEs’ growth sustainability. Additionally, the mediating effect of the business age was found to be significant in the relationship between digital adoption, financing access, skilled labor, marketing competition, government policies, and SMEs’ growth sustainability. This research contributes to the existing literature on SMEs in the digital age and provides insights into how SMEs overcome the challenges and leverage the opportunities provided by the digital revolution for sustainable growth. The findings suggest that policymakers should focus on creating an enabling environment that supports SMEs’ digital adoption, access to finance, skilled labor, and competition. Additionally, policymakers should develop policies that address the specific needs of SMEs at different stages of their business lifecycle. Overall, this study highlights the importance of SMEs in the economy and their potential to drive innovation, job creation, and economic growth.