Exploring the Digital Transformation Path of Small and Medium-Sized Enterprises Under the Background of Digital Economy

In recent years, the digital economy has emerged as a new engine for world economic growth. In that context, SMEs, as key drivers of the Chinese economy, ar e proactively promoting digitalization, which conforms to the trend of this epoch and is an inevitable way for realizing high-quality growth. Article analyzes the importance of digitization to the growth of SMEs and presents an in-depth discussion on major internal factors and external environment issues faced by small and medium-sized enterprises confront at the present stage of digital transformation. Covering internal bottlenecks such as weak awareness, insufficient investment, and lack of personnel and skills, and other outside issues like poor markets, heavy platform dependency, or major security threats. In this paper, we propose the four support systems and guarantee mechanisms for government enterprise collaboration, platform empowerment, talent support, and security protection, and provides actionable transformation suggestions. Studies indicate that the digital transition of small andsmaller business is not possible to be achieved without active cooperation between state, businesses as well as other sectors of society. With wide range of assistance from various parties, the digitization upgrade of these firms can be promoted more effectively, raising their level of digital development.