Integration of digital transformation and the concept of sustainable development in small and medium-sized businesses

The purpose of the study is to develop a concept that allows integrating sustaina-ble development and digital transformation in small and medium-sized businesses using an evaluation algorithm for determining the potential and risks for the sub-ject. The study uses such approaches as the rating method, methods of economic and statistical analysis, forecasting based on retrospective data, system and struc-tural method, causal analysis, expert evaluation method, matrix of potential as-sessment, as well as analysis and synthesis. As a result of the conducted research, the need for the introduction of digital transformation in small and medium-sized businesses was proved. Analysis of the results of ratings on indicators of sustaina-ble development and digital transformation shows a fairly high position of the Re-public of Kazakhstan on a number of indicators, which shows the high potential of the country in the context of further implementation and development of the con-cepts under study. An important incentive for small and medium-sized businesses in the context of the integration of digital transformation and sustainable devel-opment is the expansion of long-term lending opportunities for such entities in the Republic of Kazakhstan. The concept of integration of sustainable development and digital transformation in small and medium-sized businesses was established using an algorithm for assessing the potential of such entities and risk factors. The results obtained can find practical application and be useful for the management of small and medium-sized businesses in the process of implementing digital trans-formation and aspects of sustainable development.