In recent years, the world has faced numerous developmental challenges, such as the Russia-Ukraine war, the Israeli-Palestinian conflict, and inflation, all of which have exerted unprecedented pressure on businesses, especially small and medium-sized enterprises (SMEs). Digital transformation has become a crucial strategy for overcoming these development obstacles. This article draws on PwC’s 2023 report, "2022 Taiwan SME Digital Transformation Survey," and the OECD’s 2023 "SME and Entrepreneurship Outlook" to understand the current state of digital development and the challenges faced during the transformation process for SMEs both domestically and internationally.