Impact of Covid-19 on Digital Transformation and Resilience of Small and Medium Enterprises: The Case of Azerbaijan

Abstract

Currently, the digital economy has a huge impact on the development of the economy and the financial system in various countries of the world. Covid-19 has affected lives, businesses, economies, and the world at large. The virus has had a profound impact on business operations in many areas around the globe and more so if we look closely into what is happening now in Baku, Azerbaijan. This essay focuses on how Covid-19 may affect Baku’s digital transformation and resilience of small and medium enterprises. The first section deals with the introduction of technology in Azerbaijan and its current status, while the second part provides an analysis of how Covid-19 is affecting them. Lastly, the third section deals with future implications of these developments. The relevance of the chosen topic is expressed in the fact that the modernization of the domestic economy of states today is impossible without effective management of the development of the digital economy, which has a significant impact on the development of the financial system and business structures. The experience of foreign countries shows that the digitalization process , understood as the introduction of information and telecommunication technologies into economic processes, is objectively necessary and is accompanied by progressive changes in various areas of economic and social life. Due to the increase in the level of digitalization , the efficiency of the functioning of the business sector and individual sectors of the economy, as well as the financial system as a whole, increases. Among the tasks that modern commercial organizations face is to increase the efficiency of work and the level of competitiveness in a constantly changing market environment. It is possible to increase the efficiency of commercial activities by optimizing business processes, introducing modern equipment, using automation tools, and training personnel in new techniques and technologies for performing work. The article examined the impact of the pandemic on the digital transformation of small and medium-sized enterprises in Azerbaijan, as well as assessed the use of digital technologies in small and medium-sized businesses and their effectiveness during the pandemic. As a result of the study, it was revealed that the pandemic had a significant impact on the acceleration of digital transformation in most countries of the world, including the economy of Azerbaijan. The aim of the research work is to study the impact of the pandemic on the digital transformation and sustainability of small and medium-sized enterprises using the example of Azerbaijan.