Adoption of digital technologies in Bangladeshi SMEs: barriers, enablers, and strategic responses post-Covid-19

Digitalization is now recognized worldwide and especially in Bangladesh as an essential pathway towards rapid growth, enabling Small and Medium Enterprises (SMEs) to enhance their competitiveness. Investigating barriers, enablers, and strategic responses to the adoption of digital technologies in Bangladesh SMEs: an exploratory study on the digital transformation era after COVID-19 Detailed in the research is a survey of 400 small and medium-sized enterprises (SMEs) within the retail, service, and manufacturing sectors. Results show that digital adoption is especially limited by financial constraints, insufficiently developed skills, and infrastructure. On the other hand, initiatives by the government and awareness of competition and training of employees are important enablers of digital transformation. Phased implementation, partnership with external entities, and other strategic responses to these barriers are quite common. While the digital transformation was already underway, the COVID-19 pandemic served as an accelerator, propelling the growth of e-commerce, digital payments, remote work tools, and more to unprecedented levels. Looking forward, more than half of all SMEs intend to maintain or even increase their investment in new digital technologies, suggesting a permanent move to digital resilience. A digital transition for SMEs will require targeted intervention to plug financial and skills gaps, the research highlights.