DIGITAL READINESS OF SMALL AND MEDIUM ENTERPRISES IN KAZAKHSTAN: CONCEPTUAL FOUNDATIONS AND DEVELOPMENT FACTORS

Abstract

Digital readiness refers to an organization's preparedness to adopt and effectively utilize digital technologies, and it has become a critical factor for the competitiveness of small and medium-sized enterprises (SMEs). This article examines the digital readiness of SMEs in Kazakhstan by exploring its conceptual foundations and the internal and external factors influencing it. A review of the literature shows that SMEs globally often lag in digital transformation, and Kazakhstan's SMEs are no exception. We discuss key models and frameworks of digital maturity and readiness, and highlight factors such as financial capacity, workforce digital skills, infrastructure quality, leadership commitment, and policy support. Drawing on recent data and studies, we find that despite national initiatives like the Digital Kazakhstan program, many Kazakhstani SMEs remain at early stages of digital adoption. Internal challenges (limited resources, lack of skills and strategic foresight) and external barriers (insufficient broadband connectivity, regulatory hurdles) hinder their digital development. The Results and Discussion section presents a summary of these challenges, including a comparative snapshot of SME digital indicators. In conclusion, we emphasize the need for strengthening both internal capabilities and the external enabling environment to improve SME digital readiness in Kazakhstan. This study contributes a consolidated perspective on digital readiness and offers insights for policymakers and SME leaders aiming to drive digital transformation