Abstract
small and medium-sized enterprises (SMEs) are vital to Kazakhstan's economy for employment and industrial diversification. Within global digital and Central Asian integration trends, digital transformation enables Kazakh SMEs to improve competitiveness. Based on literature review and status analysis, this paper identifies major barriers including capital shortage, insufficient digital talent, uneven infrastructure and cybersecurity risks. It finds digitalization reduces transaction costs and expands cross-border trade, though outcomes are limited by policy implementation and corporate digital capacity. This study proposes strategies covering government support, firm capacity building and regional digital cooperation to support sustainable SME development and offer references for Central Asian peers.