The Impact of Artificial Intelligence on the Development of Small Enterprises

Authors

  • Dawoud Ali Wanis Department of Civil Engineering, College of Science and Technology, Umm al-Aranib, Libya
  • Jumaa Saad Mohammed Department of Social Sciences, Libyan Commission for Scientific Research, Sabha, Libya

DOI:

https://doi.org/10.61952/jlabw.v1i4.312

Keywords:

Artificial Intelligence, Small Enterprises, Project Management, Digital Marketing, Performance Improvement

Abstract

This study investigates the impact of artificial intelligence (AI) technologies on the development of small enterprises, focusing on operational efficiency, administrative decision-making, and digital marketing enhancement. The research employed a descriptive-analytical methodology, collecting data from 30 small enterprises in [Country/Region] using questionnaires and interviews. Results indicated that enterprises adopting AI achieved significant improvements in operational efficiency (46.7% high-level performance), decision-making effectiveness (53.3% effective), and digital marketing strategies (43.3% effective). Additionally, integrating AI tools enhanced competitiveness and reduced operational errors. The study recommends gradual AI adoption strategies and training for employees and business owners to achieve sustainable growth and improved managerial performance.3 There is a significant (positive) correlation between all dimensions of the Organizational Knowledge Creation Model (SECI) – the independent subvariates – and the dependent variable, Simplifying Work Processes. The correlation between the total dimensions of the SECI model – the main independent variable – and the dependent variable, Simplifying Work Processes – was 0.638, with a significance level less than 0.05.

References

Radović-Marković, M. (2023). A theoretical review of organizational resilience: Contributions and scope conditions. Journal of Entrepreneurship and Business Resilience, 6(2), 7-13.

OECD. (2025). SME Digitalisation to manage shocks and transitions: 2024 OECD D4SME survey. OECD Centre for Entrepreneurship, SMEs, Regions & Cities.

Abdulhamid, F., & Abubakar, A. R. (2024). An overview of the role of artificial intelligence on the performance of small and medium-scale enterprises in Nigeria. Austin Journal of Business Administration and Management, 8(1), 1071.

Carayannis, E. G., et al. (2025). Enhancing SME resilience through artificial intelligence and strategic foresight: A framework for sustainable competitiveness. Technology in Society, 81, 102835. https://doi.org/10.1016/j.techsoc.2025.102835

Li, J. (2023). Application of artificial intelligence in enterprise digitalization. BCP Business & Management, 44, 805-814. https://doi.org/10.54691/bcpbm.v44i.4958

Schönberger, M. (2023). Artificial intelligence for small and medium-sized enterprises: Identifying key applications and challenges. Journal of Business Management, 21, 89-112. https://doi.org/10.32025/JBM23004

Khan, S. A. R. (2025). The implications of artificial intelligence for small and medium-sized enterprises’ sustainable development in the areas of blockchain technology, supply chain resilience, and closed-loop supply chains. Sustainability, 17(1), 334. https://doi.org/10.3390/su17010334

Radović-Marković, M., Farooq, M. S., & Marković, D. (2017). Strengthening the resilience of small and medium-sized enterprises. Conference “Management, Enterprise and Benchmarking in the 21st Century”, Budapest.

Bianchini, M., & Kwon, I. (2021). Enhancing SMEs’ resilience through digitalisation: The case of Korea. OECD SME and Entrepreneurship Papers.

Wilczynska, M., et al. (2024). Potential impact of artificial intelligence on small and medium enterprises innovation in the EU: A perspective from Poland. Markets, Globalization & Development Review, 9(2), Article 2. https://doi.org/10.23860/MGDR-2024-09-02-02

Sudirman, I. D., Astuty, E., & Aryanto, R. (2025). Enhancing digital technology adoption in SMEs through sustainable resilience strategy: Examining the role of entrepreneurial orientation and competencies. Journal of Small Business Strategy, 35(1), 97-114. https://doi.org/10.53703/001c.124907

Brüggemann, I., Buse, S., & Villarreal, N. (2025). How AI can increase resilience in small and medium-sized companies. Working Paper, No. 117, Hamburg: University of Technology (TUHH), Institute for Technology and Innovation Management (TIM).

Published

2021-11-20

How to Cite

Dawoud Ali Wanis, & Jumaa Saad Mohammed. (2021). The Impact of Artificial Intelligence on the Development of Small Enterprises. Journal of Libyan Academy Bani Walid, 1(4), 178–190. https://doi.org/10.61952/jlabw.v1i4.312

Issue

Section

العلوم التطبيقية