Digitization, Automation Problems and Solutions in Small Business on the Example of Azerbaijan

Digital transformation processes are having a significant impact on the business sector of Azerbaijan, creating new opportunities for the development of small and medium-sized businesses (SMEs), in particular. Automation is often associated with innovation, efficiency, and competitiveness, which are essential elements for the growth of SMEs in a developing economy. The study aimed to examine the technological, market, and cultural factors influencing the tendencies of SMEs to switch to automated management. The analysis of the tendencies of SMEs to switch to automated management in Azerbaijan is relevant due to its potential to contribute to economic development, reveal cross-cultural dynamics, and increase business adaptability. The article also examines the main problems of small and medium-sized businesses in the implementation of automation systems, such as cybersecurity, technical integration, and bureaucratic obstacles. In addition, the article explores how automation helps employees focus on more valuable activities, simplifying their work processes. The importance of increasing investments in training programs, strengthening collaboration with automation vendors, and developing risk management strategies to enhance the potential of SMEs in the field of digitalization was highlighted. The main purpose of the study is to study and gain a deep understanding of the factors influencing the transition of small and medium-sized businesses (SMEs) to automated management systems in Azerbaijan. This study, which analyzes the nuances of technology adoption, cultural influences, political factors, and market competitiveness, aims to provide valuable suggestions and recommendations to policymakers, businesses, and stakeholders investing in the development and sustainability of small and medium-sized businesses.