Defining Essential Digital Skills for MSMES in Balanga City: Setting Standard for Technical Adoption on Government Compliance

For many MSMEs in Balanga City, Bataan, navigating government compliance is a daunting, paper-filled journey. But what if a few key digital skills could transform this process, saving time, money, and stress? The objective of this quantitative research paper is to identify the current state of digital skills among MSMEs in Balanga City, Bataan and establish a framework to enhance their digital skills and comply with government agencies’ requirements. It was employed with 333 respondents selected through stratified random sampling. The data collected were analyzed using statistical techniques such as percentage, mean, Mann-Whitney U test, Kruskal-Wallis H test, which are the non-parametric versions of the independent sample t-test, and analysis of variance (ANOVA). The study identified a lack of proficiency in basic digital skills. It is crucial for MSME owners to enhance their digital skills to adapt to digital accounting practices and leverage technology for improved efficiency and competitiveness. Basic digital literacy serves as a foundation for developing digital accounting literacy, enabling MSME owners to successfully embrace the digital age. Keywords: digitalization, basic digital skills, basic record-keeping, e-filing, micro small, and medium enterprises