Challenges of Digital Transformation in Rural Businesses: An Exploratory Paper

Abstract

Digital technologies enable businesses to compete in a digital landscape via automation, efficiency gains, and customer reach. However, micro-rural businesses face unique issues that leave these businesses vulnerable to competitive pressures because they are often unaware of these valuable digital systems. We surveyed 37 rural businesses in Maine using surveys and open-ended questions to understand their successes and challenges in technology adoption. Our results suggest that while rural businesses recognize the need for digital strategies, a lack of access, and awareness of integrated systems and resources to implement technology persists. In addition, many micro-rural businesses lack adequate broadband Internet which is crucial to digital transformation. Our findings show that a multi-pronged approach is needed to address connectivity, education, and resource constraints. These include affordable access to broadband Internet and a proactive approach by government or non-profit organizations to help these micro-rural businesses understand the need for integrated software solutions as well as the training to implement them. Because micro-rural businesses represent the lifeblood of remote rural communities and digital integration represents a vital part of survival and growth, these findings suggest that digital transformation represents a necessary condition for success in businesses and their communities.