Digitalization of economic processes as a driver of regional business development

The article investigates the impact of digitalization on the transformation of regional business in Ukraine, considering modern economic, technological, and institutional challenges. The study aims to analyze the influence of digital technologies on regional business development, identify problems and prospects for their implementation, and develop proposals to improve state support mechanisms for digital transformation. The research methodology includes general scientific methods such as analysis, synthesis, comparison, and generalization. In addition, structural-functional and system analysis methods and content analysis of strategic documents and statistical sources were used. The article examines the current state of digital transformation in the regions of Ukraine and reveals significant differences in access to digital technologies, infrastructure provision, and digital competence of entrepreneurs. The main problems include digital inequality, uneven development of digital infrastructure, insufficient institutional support, and a lack of motivation among small and medium-sized businesses to adopt digital tools. The article’s scientific novelty lies in clarifying the essence of digital transformation in the context of regional business development and the systematization of the main factors influencing its success. The practical significance of the research lies in developing recommendations aimed at strengthening state policy in the field of digitalization, increasing support for small and medium-sized enterprises, and overcoming institutional barriers to digital development at the regional level. The article outlines prospects for further research on assessing regional digital strategies’ effectiveness, local authorities’ role in supporting digital business, and the potential of public-private partnerships in accelerating digital transformation. Keywords: digitalization, regional business, digital infrastructure, digital competence, state support, transformation processes, institutional environment.