Bridging Digital Gaps: Industry-Specific Challenges and Opportunities for Guangxi’s SMEs in Digital Transformation

Abstract

This paper explores the challenges and opportunities faced by small and medium-sized enterprises (SMEs) in Guangxi Province, China, in their journey toward digital transformation. As digital technologies continue to reshape business practices globally, SMEs in China are under increasing pressure to adopt these innovations to remain competitive and enhance operational efficiency. However, digital transformation remains a complex and multifaceted process, particularly for SMEs in less-developed regions such as Guangxi. The study examines industry-specific barriers, opportunities, and strategies in the context of digital transformation, with a particular focus on the manufacturing, hospitality, and retail sectors. Drawing on qualitative data from in-depth interviews with senior management and decision-makers from five SMEs across these industries, the research identifies common obstacles including financial constraints, technological limitations, and a lack of skilled personnel. It also highlights key opportunities such as improved customer engagement, operational efficiency, and the potential for new revenue streams. By situating these findings within the broader literature on digital transformation, this study contributes to a deeper understanding of the unique challenges SMEs in Guangxi face and the role of government policies in facilitating digital adoption. The paper concludes with practical recommendations for SMEs and policymakers aimed at overcoming these challenges and accelerating digital transformation in the region.