Brazilian small businesses: impacts and challenges of digital transformation

This article explores how technological evolution shapes micro, small and medium-sized enterprises (MSMEs) in Brazil, highlighting the challenges and opportunities of digitalization. The research presents the historical importance of companies as agents of transformation of the economy and society, from the Industrial Revolution to the era of digital transformation, in which digital companies and technologies such as Web 4.0 are revolutionizing the market. As a result, social media has emerged as a powerful tool for communication and business, enabling direct interactions with consumers and providing new insights. To this end, an exploratory search methodology was used, based on a literature review, analyzing the impacts of digitalization on these organizations, addressing the importance of technological strategies and innovation. Despite their relevance in global and local economies, these companies face obstacles such as financial constraints, lack of infrastructure and resistance to change. The findings highlight that the adoption of technologies can increase competitiveness, connecting to new markets and consumers. However, challenges such as lack of technical training, limited access to credit and cultural barriers are identified as important obstacles. Therefore, investments in technical training and specific public policies are suggested to mitigate these difficulties. The text concludes that, for MSMEs to thrive in the digital age, it is essential to balance innovation and resilience, as information technology is seen as a competitive advantage, but its implementation requires strategic planning and cultural adaptation.