Digital Factors Influencing Small and Medium-Sized Businesses in the Context of COVID

Makasheva R.S. Tussupova L.A.
2021 Institute of Economics Committee of Science MSHE RK

Economy: strategy and practice
2021 #16 Issue 4 6 - 17 pp.

Digital technologies have become one of the most important tools of present day economy. Especially, the level of economy digitalization was experienced during burst out of COVID pandemic in 2019. This has put all businesses, especially SMEs, in severe conditions.Total lockdown regime in Kazakhstan has challenged small businesses to unexpected and rapid change of the economy to the full digital regime. Where business owners were opposed to acquiring and learning new skills at a high speed.The aim of this article is to study the impact of digitalization on sustainable development of SMEs in the context of COVID-19. In this study, there was used statistical data on main indicators of digitalization. For the analysis of the indicators, SPSS software was used. It included definition of indicators, which have higher impact on the development of SMEs. Throughout the literature review there were identified four factors which had impact of the business development in terms of digitalization during COVID-19. Initially the research included four factors: Organizations with ICT Specialists, Organizations using Cloud service, Organizations using computers, Individual users of the Internet. However, according to the conducted research, ICT specialists and usage of Digital tools (as iClouds) have impact on the proficiency of SMEs. Whereas, ICT specialists in Companies had much greater impact. This study defines two main indicators of digital economy development under the COVID-19. The results of this study could be used in the development of the policy of Kazakhstan Digitalization and improvements of policies for SMEs development and support.

digital economy , digital tools , digitalization , SME , sustainable development

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