Analysis of barriers to scaling successful digital innovations in small and medium-sized enterprises

Abstract

The relevance of this study is driven by the growing role of digital solutions in the development of small and medium-sized enterprises, alongside a persistent gap between the successful local implementation of digital innovations and their subsequent scaling. In the context of the digital transformation of the economy, the ability of enterprises to move from pilot digital initiatives to scalable business models determines their level of competitiveness and long-term resilience. The purpose of this article is to substantiate the systemic nature of the barriers that hinder the scaling of digital solutions in small and medium-sized enterprises and to develop a general analytical approach to overcoming them, accounting for the sequential impact of different groups of constraints. The methodological framework of the study combines systemic and structural-logical analysis, comparative analysis of international index indicators, and the generalization of digital transformation practices in small and medium-sized enterprises. The information base includes data from the International Telecommunication Union (ICT Regulatory Tracker, G5 Benchmark), indicators of the Global Innovation Index 2025, and statistical data on the population’s digital skills. The findings indicate that barriers to scaling digital solutions arise at the institutional-regulatory, infrastructure-technological, human capital and competence-based, and business performance levels. These barriers do not operate in isolation but mutually reinforce one another. It is substantiated that their combined effect leads to the interruption of most digital initiatives at the local implementation stage. An analytical model and a scaling roadmap are proposed to systematize barriers across the stages of digital solution development and substantiate managerial guidelines for transitioning to scalable business models. The practical significance of the study lies in the possibility of using the obtained results to design managerial decisions and policy instruments aimed at supporting the digital development of small and medium-sized enterprises.