Introduction:

In recent years, the business world has witnessed a profound shift in the way

companies operate, communicate, and engage with their customers. This

transformation has been driven by the relentless advancement of digital

technologies, which are reshaping industries across the globe. Among the most

affected are small enterprises, which often form the backbone of local economies.

Poblacion, like many other regions, has seen the emergence of these digital winds

of change. As small enterprises navigate the complexities of this digital

transformation, it becomes imperative to examine the level of impact it has on their

operations, competitiveness, and sustainability.

Digital transformation encompasses the integration of digital technologies

into all aspects of business operations, from customer interactions and marketing to

supply chain management and internal processes. It extends beyond the mere

adoption of new tools and systems; it signifies a fundamental shift in how

businesses approach their strategies and operations in the digital age. While larger

corporations may have the resources and infrastructure to readily embrace digital

transformation, small enterprises often face unique challenges and opportunities on

this journey.
 Small enterprises in Poblacion represent a diverse spectrum of businesses,

ranging from family-owned stores to boutique services and local manufacturing

units. Their resilience and adaptability have been tested over time, but now they

face a new set of challenges and opportunities presented by the digital age.

Understanding the level of impact that digital transformation has on these

enterprises is not only crucial for their individual success but also for the broader

economic growth and vitality of the region.

This study seeks to delve into the intricate dynamics of digital

transformation within the context of small enterprises in Poblacion. Specifically, it

aims to answer two fundamental questions: Firstly, to what extent have small

enterprises in Poblacion adopted digital transformation strategies and technologies

in their operations, marketing, and customer engagement? Secondly, what is the

level of impact of digital transformation on the performance, competitiveness, and

sustainability of these small enterprises in Poblacion?

By addressing these questions, this research intends to provide valuable

insights that can guide small enterprises in Poblacion towards effective digital

transformation strategies and inform policymakers, business associations, and

stakeholders about the evolving landscape of small business in the digital age. The

findings will not only contribute to the existing body of knowledge on digital
transformation but also offer practical recommendations to empower small

enterprises in Poblacion to thrive in the ever-changing business environment.

Statement of the Problem:

Small enterprises in Poblacion are facing numerous challenges in the rapidly

evolving business landscape. The advent of digital technologies has ushered in a

new era of business operations, communication, and customer engagement.

However, it remains unclear to what extent these small enterprises in Poblacion

have embraced and adapted to digital transformation and how this transformation

has affected their overall performance and competitiveness.

Therefore, the problem statement for this study is twofold:

1. To what extent have small enterprises in Poblacion adopted digital

transformation strategies and technologies in their operations, marketing,

and customer engagement?

2. What is the level of impact of digital transformation on the performance,

competitiveness, and sustainability of small enterprises in Poblacion?

This research aims to provide a comprehensive understanding of the current

state of digital transformation among small enterprises in Poblacion and assess its

implications for their growth and success in the evolving business environment.
3. GAP

This particular study presented 3 possible research gaps, the first gap is the lack of

information or understanding about how small businesses are affected by and adapt

to digital transformation. There is a need for the development and evaluation of

practical frameworks or guidelines tailored to the unique needs and limitations of

small enterprises in their digital transformation journeys. Many small businesses

lack structured roadmaps for digital adoption, and research efforts should focus on

providing actionable guidance to address this issue. Small enterprises face barriers

to accessing practical guidance, such as limited awareness of available resources,

time constraints, and the cost of professional services. Overcoming these barriers is

crucial for ensuring that small businesses can benefit from practical guidance

(Strohmeyer et al., 2017).

The second research gap discusses how it is critical to comprehend how e-

commerce and digital technologies affect revenue growth in small businesses in an

increasingly digital business environment. Research should examine how small

enterprises can increase their revenue through the use of digital tools, online
marketing strategies, and e-commerce platforms. Businesses that implemented

digital tools for personalized guest interactions experienced higher customer

satisfaction scores, leading to repeat business and increased revenues (Brown and

Davis, 2021).

The very last research gap talks about the lack of exploration on the role of

technology in cost reduction. Research should explore the adoption of digital tools,

automation, and software solutions in small enterprises and how these technologies

impact operational costs. It's crucial to identify which technologies are most

effective and how small businesses can implement them. Enterprises with

integrated e-commerce experienced reduced costs associated with traditional brick-

and-mortar operations (Chen and Kim, 2020).

6. SOLUTION

The research gap stating the lack of information or understanding about how small

businesses are affected by and adapt to digital transformation, has a possible

solution in terms of Promoting digital inclusion, addressing the "digital divide" by

ensuring equal access to digital solutions for all Filipinos is crucial. This can be

achieved through initiatives such as providing affordable internet access,

promoting digital literacy programs, and supporting the development of inclusive

digital services. Digital inclusion is a crucial determinant of competitiveness in the

modern business landscape (Smith and Johnson, 2018).

For the second research gap stating difficulty in comprehending how e-commerce

and digital technologies affect revenue growth in small businesses in an

increasingly digital business environment, has a possible solution in terms of the

government providing digital skills training and education for small businesses.

The government needs to provide funding programs to finance digital

transformation, create a digital learning platform for small businesses, and promote

digital tools. The government can also support digital transformation in small

businesses by building a digital platform for small businesses for collaboration and

networking. Businesses participating in these programs experienced improved

operational efficiency and, consequently, higher productivity levels (Jones et al.,

2019).

For the third research gap that talks about the lack of exploration on the role of

technology in cost reduction, has a possible solution in terms of Investing in

technology infrastructure. The Marcos Administration has announced its intention

to continue the previous Duterte Administration’s digital transformation program.

Under the digital transformation program, the immediate priorities include a cloud

data center, software development for business process improvement, the

conversion of local government units into smart cities, cybersecurity solutions for

data privacy protection, and improving the internet and mobile services landscape

through a national broadband plan. Businesses that strategically allocated resources

towards technology infrastructure experienced improvements in operational

efficiency, market competitiveness, and overall performance (Smith and Johnson,

2018).

9. SIGNIFICANCE

The study "The Level of Impact of Digital Transformation in Small

Enterprises" was conducted to determine how digital changes affect small

businesses, like using computers and the internet. Researchers conducted this study

to see whether these digital changes help small companies grow, save money, or

satisfy customers. This information is essential for the reason that it may help

small businesses make more informed choices regarding the usage of digital tools

and strategies, which are becoming more and more crucial in today's business

environment.
 The researchers of this study are qualified enough to conduct the study

simply because they are senior high school students in the strand of Accountancy,

Business, and Management and are quarterly enrolled in the foundation of basic

accounting and organization management. One of the researchers is a verified user

of this particular application, and they have firsthand knowledge of its application.

Through this study, we can assist the entire need for this study.

The study "The Level of Impact of Digital Transformation in Small

Enterprises" offers valuable insights for small businesses, consumers, nonprofits,

and researchers. It provides insights into how digital technologies can improve

operations, expand customer bases, and boost profitability. Consumers gain a

better understanding of digital transformation's impact on their interactions with

small businesses, while nonprofits and community organizations can explore

innovative digital tools for community development. For researchers, it offers

valuable data and trends for further academic and practical research on digital

transformation's impacts. This knowledge helps individuals and organizations

make informed decisions in the digital age, stay competitive, and improve their

overall quality of life.

Reference
Role of Government to Enhance Digital Transformation in Small Service Business

https://doi.org/10.3390/su13031028