Abstract

Research object is the challenges and opportunities faced by small and medium-sized enterprises (SMEs) in Ukraine's tourism industry, specifically focusing on digital development and entrepreneurship. This article addresses the difficulties and advantages encountered by SMEs in Ukraine's tourism sector regarding digital development and entrepreneurship. It seeks to comprehensively analyze various facets of digitalization, encompassing distinct activities, trends in development, factors influencing trends and clusters, and pivotal areas for growth. Moreover, the study assesses the impact of European integration on the nation's tourism sector and evaluates the potential of innovative endeavors by small enterprises relative to their larger counterparts. In-depth perspectives on digitalization practices in the tourism industry of Ukraine are identified. The study investigates strategies for managing customer relationships and employs social media data to gauge customer satisfaction. Additionally, the article proposes an accelerated digitalization program for small businesses, coupled with collaborative efforts in clusters, as a means to attract investment and foster innovation. This approach is envisioned to enhance business productivity and create diverse channels for customer engagement. The study underscores the significance of advancing digital infrastructure to enhance the appeal and investment potential of Ukraine's tourism sector. Notably, the research emphasizes the importance of efficient SMEs, highlighting their potential for expansion when partnered with larger corporations. Simultaneously, it addresses the need to streamline inefficient SMEs to boost overall productivity. The article delves into the practical implementation of management strategies and the adoption of innovative practices. It underscores the value of reshaping SMEs' business models to embrace a more adaptable division of labor. Additionally, a proposed cluster strategy emerges as a potential solution to address various challenges, promoting innovation, regional development, and adaptation to evolving business environments.

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