Digital transformation has become fundamental to improving the competitiveness of microenterprises worldwide, and Huancayo, Peru is no exception. By adopting digital technologies, microenterprises can improve their operational efficiency, expand their market reach and enhance their abilities to make informed decisions. They have therefore found innovative ways to adapt to changing market conditions, such as incorporating information technologies, online sales, use of social networks and home delivery. Despite this, many microenterprises struggle to survive due to lack of access to financing and adequate government support. This study aimed to analyze how individual, group and organizational factors influence the digital transformation of microenterprises and its impact on their competitiveness. The research was carried out in a sample of 80 multi-sector microenterprises, using a non-probabilistic and cross-sectional research design of a quali-quantitative and explanatory nature, using SEM-PLS. The results of the study indicate a positive relationship between individual, group and organizational factors and digital transformation, as well as with the competitiveness of microenterprises. The coefficients of determination (R2) obtained were 0.8897 and 0.7931 for digital transformation and competitiveness, respectively, indicating a predictive ability in both cases. These findings are of great use to policy makers, business owners and researchers interested in fostering the growth and development of microenterprises in emerging economies.

The business context has been affected by the action of Covid 19, and companies must react to this new reality. The research analyzes people, processes and technology and their effect on the development of the respective business strategy in small companies in Huancayo, Peru. The study design was non-probabilistic, cross-sectional, qualitative-quantitative and explanatory in a sample of 99 business units. The analytical technique used was structural equation modeling based on PLS. The results indicate that there is a positive relationship between the processes and technology used and the implementation of actions to achieve their objectives. No significant relationship was found with people, given that in the face of the health emergency, economic paralysis, closure of markets and sectors, the companies had to make decisions and postpone concern for human resources. The coefficient of determination (R2) was 79.3%, which shows that the model presented allows predicting future results.