Digitalization and MSMEs

Category: 2023 Series Written by Mayanja & Tambunan Hits: 1163

Sazir Nsubuga Mayanja
St Peter's University, Uganda

Tulus Tambunan
Centre for Industry, SME. & Business Competition
Studies, Universitas Trisakti, Jakarta, Indonesia

 

Introduction

Digitalization is applying digital technologies to improve business practices and facilitate exchanges. The digitalization of business processes positively and significantly enhances productivity (Yuan et al., 2021). This is true of large corporations and MSMEs as well. Recent studies argue that digitalizing business processes supports financial inclusion and triggers inclusive economic growth (Yuan et al., 2021; Alsufyani and Gill, 2022). Digitalization involves transforming conventional business processes into the emerging trend of utilizing digital capabilities to improve business performance (Alsufyani and Gill, 2022). The discussion is premised on the irrefutable fact that MSMEs are drivers of economic social and technological transformation of countries, regardless of whether they are underdeveloped, emerging or developed. (Tambunan, 2021; Sazir, 2020; OECD, 2019). .

 

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