Exploring the Meaning of Digital Transformation in Micro and Small Business Owners’ Entrepreneurial Experience

Abstract

Digital transformation has become a defining force in entrepreneurship, reshaping how individuals conduct business and engage with technology. Within this evolving landscape, understanding the lived experience of entrepreneurs in adapting to digital environments remains a crucial but underexplored dimension of business studies. Although prior research has focused on behavioral and technological determinants of digital adoption, little is known about the subjective meanings and existential interpretations that entrepreneurs attach to this process. This study employs a hermeneutic phenomenological approach to explore how micro and small entrepreneurs experience, interpret, and give meaning to digital transformation in sustaining their business continuity. The methodological procedures involved three stages: (1) purposive selection of twelve micro and small business owners from diverse sectors, (2) in-depth semi-structured interviews conducted over two rounds to enhance narrative depth, and (3) a systematic six-step Interpretative Phenomenological Analysis (IPA) to identify emergent themes and interpret experiential meanings. Triangulation through reflective memos and peer debriefing was applied to enhance analytical rigor. Data were collected through in-depth semi-structured interviews with twelve entrepreneurs representing various industries and analyzed using Interpretative Phenomenological Analysis (IPA). The findings reveal four interrelated themes: identity redefinition, emotional adaptation, technology as a source of meaning-making, and community-based digital support. Entrepreneurs’ experiences indicate that digital adoption is not a technical act but a transformative journey that reconfigures their sense of self, resilience, and belonging. This interpretive insight deepens understanding of entrepreneurship as a human-centered practice, emphasizing meaning and adaptation over mere functional adoption. The study advances phenomenological inquiry in entrepreneurship by illustrating how digitalization is lived as a socio-cultural and emotional experience, thereby expanding theoretical and practical perspectives on sustainable digital entrepreneurship. However, the study is limited by its small sample size and context-specific focus, which may restrict transferability; future research could involve longitudinal designs or larger comparative samples to broaden interpretive insights.