Digital Transformation in Entrepreneurship: Implications for Innovation and SME Performance

Digital transformation important role in promoting entrepreneurship, innovation, and the performance of small and medium-sized enterprises (SMEs). This study reviews existing literature to examine how digital technologies influence business innovation and organisational outcomes. Technologies include digital platforms, information and communication technology, and automation can support process improvement, customer engagement, and innovative business models. The review draws on perspective to explain how digital resources, managerial competencies, and organisational adaptability contribute to business performance. Digital transformation can improve operational efficiency, competitiveness, and responsiveness to changing market conditions. However, SMEs often face challenges, including financial constraints, inadequate infrastructure, limited digital skills, and resistance to organisational change. These barriers may reduce the effectiveness of technology adoption. The review highlights the importance of strategic planning, employee development, and collaborative networks in strengthening digital capabilities. Overall, successful digital transformation requires integrating technology with organisational objectives and innovation strategies. The findings offer useful insights for entrepreneurs, managers, and policymakers seeking to enhance SME competitiveness and sustainable business development.