The impact of business analytics on global financial performance and economic contribution of small and mid-sized enterprises

The application of business analytics has become a critical success factor for improving the performance and economic impact of SMEs in competitive markets. With advancements in digital transformation, SMEs can now leverage analytical tools to enhance decision-making, understand complex markets, and compete effectively with larger organizations. This study employed an exploratory and quantitative research approach, collecting primary data from SME owners and managers and secondary data on financial performance, market dynamics, and economic impact. Statistical and thematic analyses revealed a strong positive relationship between business analytics adoption and improved financial performance, operational efficiency, and economic contribution. Key gains were observed in inventory management, customer relationship management, and strategic decision-making, with businesses adopting analytics achieving higher revenue growth and resilience during economic volatility. The findings underscore the importance of organizational readiness, data quality, and strategic alignment in ensuring successful analytics implementation. This research highlights the managerial and policy implications of supporting SMEs in building analytics capacity to drive economic growth. Further studies are recommended to explore specific implementation models and address barriers to analytics adoption, emphasizing the pivotal role of business analytics in enhancing the competitiveness and sustainability of SMEs.