Digital evolution has become a transformative force reshaping global business landscapes, especially for Small and Medium-sized Enterprises (SMEs) in emerging economies. SMEs are vital contributors to employment and economic growth in these regions but face unique challenges that digital transformation can help mitigate. This study examines how digital technologies such as cloud computing, e-commerce, and data analytics impact the competitiveness and resilience of SMEs in developing markets. It also explores the role of government policies, infrastructure development, and digital literacy in facilitating or hindering this transformation. Through case studies and surveys, insights are gleaned into the real-world experiences of SMEs across sectors, highlighting successes and hurdles. While digital technologies enhance operational efficiency and market access for SMEs, barriers such as inadequate infrastructure and cybersecurity threats persist. Recommendations are provided to policymakers, industry leaders, and SME owners to foster a more inclusive and sustainable digital transformation landscape, ultimately driving economic development in developing markets.

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Keywords: Digital Evolution, SMEs, Developing Markets, Digital Technologies, Operational Efficiency.