THE IMPACT OF DIGITAL TRANSFORMATION ON THE GROWTH AND

COMPETITIVENESS OF SMALL BUSINESSES FOUND IN ATENEO AVENUE,

SANTA CRUZ, NAGA CITY

Abstract

The current study analyzed and explored into the impact of digital transformation on the

growth and competitiveness of small businesses found in Ateneo Avenue, Santa Cruz, Naga

City. The research focused on small businesses operating in the community of small

businesses with fewer than 50 employees, specifically those located on Ateneo Avenue, Santa

Cruz, Naga City, Camarines Sur. The study primarily revolved around the experiences of

small businesses within the said community and disclosed the digital resources and services

they offered. In accordance with these two main topics, the researchers gathered detailed

information on the sub-topics to further expand on the main subjects. The researchers have

chosen to primarily utilize primary research methods, specifically conducting interviews, to

gather preliminary data. However, they have also incorporated secondary research by

accessing data resources from the business's online platform and gathering feedback from

customers posted on the internet. The results revealed that the owner of Business 1

emphasizes the importance of maintaining good relationships with customers and providing

quality service. They have implemented digital transformation strategies, including sales

monitoring applications, to improve performance and convenience. While acknowledging

potential drawbacks, the owner finds the technology helpful in monitoring sales performance

and maintaining consistency in business processes, contributing to a welcoming and friendly

atmosphere for customers. The challenges of maintaining consistency in processes, adjusting

operations during holidays, and offering budget-friendly food options are highlighted as

crucial factors impacting the success and competitiveness of the cafe. On the other hand, the

impact of digital resources and services on the food industry is significant, with social media
platforms like Instagram and Facebook being essential for marketing, food delivery apps

providing convenience, and cashless payments ensuring secure transactions. These digital

innovations have enabled food businesses to reach a wider audience, adapt to changing times,

and enhance customer experiences. Additionally, businesses have implemented various forms

of innovation, such as creating dedicated spaces for different customer preferences and

continuously improving products based on market research and customer feedback. The study

also revealed that feedback from customers and competitors plays a crucial role in shaping a

business's marketing strategy and success. By gathering feedback on convenience-related

aspects like payments and delivery, businesses can identify areas for improvement and

streamline processes to enhance customer experiences. Additionally, monitoring competitor

feedback helps businesses stay competitive by identifying opportunities to differentiate

themselves and offer unique conveniences to customers. Embracing digital payment methods

and staying updated with industry trends are vital for maintaining competitiveness in the

market. In conclusion, the study provided interpretations, implications, and recommendations

derived from its findings. The interpretations shed light on the implications of digital

transformation on small businesses, emphasizing its impact on competitiveness and growth.

The implications highlight the need for businesses to embrace digital resources and services,

establish an online presence, and leverage technology for improved operations and customer

engagement. The study's recommendations advise small businesses to invest in digital tools,

adopt innovative strategies, and continuously adapt to changing market trends to enhance

their competitiveness and achieve sustainable growth.