Industrial parks of Ukraine: current situation and development prospects in the conditions of digitalization of innovative economy
Year: 2025
Type: article
Abstract: Introduction. The smartization of small and medium-sized enterprises (SMEs) represents a crucial transformation that enhances business efficiency, automation, and competitiveness. However, the digital transition of SMEs faces numerous challenges, including financial constraints, technological barriers, organizational issues, and regulatory limitations. The purpose of the paper is to examine the key risks and barriers associated with implementing smart technologies in SMEs, assess their impact on business development, and propose practical recommendations for overcoming these obstacles. Results. The research highlights that digital transformation offers SMEs opportunities to optimize operational processes, reduce costs, and enhance their ability to adapt to market fluctuations. The study identifies financial constraints, technological challenges, and regulatory issues as the main obstacles to SME smartization. Financial constraints include high initial implementation costs, insufficient government support, and difficulties in attracting investment. Technological challenges involve the lack of necessary digital infrastructure, cybersecurity risks, and incompatibility of smart solutions with existing business processes. Regulatory barriers are primarily related to an underdeveloped legal framework, the absence of incentive programs for digitalization, and bureaucratic obstacles in obtaining support for smart transformation. The research also identifies the unique characteristics of SMEs that influence their smartization process. While SMEs benefit from greater flexibility in adapting to market changes, they also face financial limitations, lack specialized IT expertise, and are highly dependent on external factors. Moreover, their relatively small scale requires digital solutions that are cost-effective and scalable. Conclusion. Smartization is a critical factor in maintaining the competitiveness of SMEs in the digital economy, but its implementation requires overcoming significant financial, technological, and regulatory obstacles. A comprehensive approach that combines financial support, technological development, and regulatory adjustments is essential for successful digital transformation.
Source: Economics Finances Law
Institution: Lviv Polytechnic National University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408652473