The global business landscape is undergoing rapid digital transformation, significantly impacting small and medium enterprises (SMEs). This study focuses on the role of digital technologies in driving economic empowerment among SMEs in Gauribidanur Taluk, Karnataka. It explores the benefits of digital adoption in enhancing productivity, expanding market access, and improving profitability. Despite these advantages, challenges such as inadequate infrastructure and digital illiteracy persist. The study proposes actionable recommendations for addressing these issues and highlights future research opportunities.