Overcoming barriers to digitalization of small and medium-sized enterprises under martial law

Abstract

The object of this study was the digitalization of small and medium-sized enterprises under martial law. The problem being solved was to overcome obstacles that slow down the introduction of digital technologies into the business processes of small and medium-sized enterprises during periods of conflict or war. During the period of martial law, the consequences for small and medium-sized enterprises are instability, material losses, resource limitations, and security threats. Despite the reduction in the number of small and medium-sized enterprises in Ukraine during the military invasion by 29.39 %, most of them continued to function, adapting to the new conditions of the crisis situation. However, neither the crisis conditions nor the increase in Internet users prompted these enterprises to make significant changes in the use of digital technologies. This was due to a number of barriers, including the following. The lack of liquidity and financing, the forced nature of implementation, the need to constantly adapt business processes to external changes are more related to the crisis situation. Inappropriate digital tools, lack of package solutions, lack of sufficient knowledge and skills, low trust in the state, small size of the enterprise, lack of understanding of the need or direction of reformatting business processes do not depend on the state of war. Overcoming the barriers to digitization of small and medium-sized enterprises under martial law is envisaged through interaction and partnership with other stakeholders. Cooperation and partnership are based on financial and informational support, training, platform model, and shared use of resources. The necessity and possibility of applying the developed proposals to overcome the barriers of digitalization of small and medium-sized enterprises under the conditions of martial law predetermines the practical significance of reported results