Digital Tools adoption and business growth of Micro and Small Enterprises (MSEs) in Calapan City, Oriental Mindoro

Digital tools have become integral to modern business operations, enabling companies to navigate the challenges of an ever-evolving business landscape to ensure its growth and sustainability. While the importance of digital tools in promoting business growth is widely recognized, there is limited research on the specific relationship between digital tool adoption and business growth. This study investigated the correlation between digital tool adoption and business growth among Micro and Small Enterprises (MSEs). A descriptive-correlation research design was employed, and purposive sampling was used to obtain 46 MSEs in Calapan City Oriental Mindoro. A researcher-made questionnaire was used to assess the digital tools adoption and business growth. Pearson's Correlation Coefficient was conducted to examine the relationship between digital tools adoption and business growth. The study found a significant and strong positive correlation between digital tools adoption and business growth. Specifically, digital marketing was perceived as cost-effective and impactful for expanding customer reach, and customer relationship management systems were seen as beneficial for enhancing customer satisfaction and loyalty. However, some MSEs preferred face-to-face interactions, and cloud computing was recognized for improving operational efficiency, though concerns about cost and the necessity for data security remain. Overall, digital tools significantly contribute to competitive advantage, enhanced customer experience, and cost reduction.