Exploring the Role of Critical Technologies and Artificial Intelligence in SMEs and Entrepreneurial Ventures

Abstract

The Fourth Industrial Revolution (4IR) has introduced critical technologies—artificial intelligence (AI), machine learning, blockchain, and the Internet of Things—that are transforming entrepreneurial ecosystems and business models (Schwab, 2017

Chalmers et al., 2020). Among these, AI has emerged as a general-purpose technology capable of augmenting human cognition, automating complex tasks, and enabling predictive insights (Kaplan & Haenlein, 2019). While large corporations have leveraged AI to optimize operations and scale innovation, small and medium enterprises (SMEs) and entrepreneurial ventures face unique challenges in adopting these technologies due to resource constraints, limited technical expertise, and infrastructural gaps (OECD, 2021

Wei & Pardo, 2022).

Background:

AI offers significant benefits for SMEs and start-ups, including enhanced opportunity recognition, improved decision-making, personalized customer engagement, and operational efficiency (Shepherd & Majchrzak, 2022

Huang & Rust, 2018). In marketing, AI-driven analytics enable tailored experiences and dynamic pricing strategies, strengthening competitiveness (Kumar et al., 2019

Paschen et al., 2019). Digital platforms have emerged as critical enablers, providing modular architectures that allow SMEs to integrate AI incrementally without extensive in-house development (Lusch & Nambisan, 2015). However, despite these opportunities, adoption remains uneven, and many SMEs struggle to translate technological potential into tangible business outcomes.

Research Gap:

Existing literature emphasizes AI’s transformative potential but offers limited insights into how SMEs and entrepreneurial ventures practically integrate these technologies within their organizational structures and market strategies. Most studies focus on large corporations or single-industry contexts, leaving a gap in understanding sectoral variations, platform-driven adoption models, and the interplay between technology and entrepreneurial processes. Furthermore, ethical and governance challenges—such as algorithmic bias, transparency, and data privacy—remain underexplored in the SME context (Chalmers et al., 2020

Isaak & Hanna, 2018).

Aim:

This research aims to explore how critical technologies, particularly AI, influence entrepreneurial processes, organizational design, and marketing strategies in SMEs and new ventures.

Some Objectives:

1. Examine the role of AI-enabled platforms in facilitating technology adoption among SMEs.

2. Investigate how AI reshapes opportunity identification, innovation practices, and customer engagement.

3. Analyze organizational design and governance mechanisms emerging in AI-driven ventures.

4. Identify sector-specific challenges and best practices for integrating AI and related technologies.

By addressing these objectives, the study will contribute to theory and practice by offering actionable insights for SMEs, policymakers, and technology providers. It will also inform strategies for inclusive digital transformation, ensuring that smaller firms can harness the benefits of AI without exacerbating resource disparities. Ultimately, this research seeks to advance knowledge on how critical technologies can drive sustainable growth and competitiveness in entrepreneurial ecosystems.