FACTORS OF SMALL BUSINESS DEVELOPMENT IN THE CONTEXT OF THE DIGITAL ECONOMY

Abstract

This study examines critical factors influencing small business development in the digital economy through mixed-methods research involving 340 small enterprises across five countries. Quantitative analysis reveals that digital adoption significantly enhances business performance, with e-commerce adoption increasing revenue by 58%, digital marketing improving customer acquisition by 73%, and cloud computing reducing operational costs by 42%. Regression analysis identifies digital infrastructure access (β=0.68), digital literacy (β=0.54), and financial resources (β=0.47) as primary determinants of digital transformation success. Qualitative findings highlight that entrepreneur mindset, technical support availability, and regulatory environment critically moderate digital adoption outcomes. Results demonstrate strong positive correlation between digitalization level and business growth (r=0.81, p<0.001).