In today’s economic environment, small and medium-sized enterprises (SMEs) play a vital role. They are not only a major source of employment but also drivers of innovation and economic growth. However, with the rapid development of technology and changes in market demand, SMEs are facing increasingly severe challenges. As an important strategy to address these challenges, digital transformation has become an inevitable path for the development of SMEs. This paper aims to explore the current status and challenges of the digital transformation of SMEs and provide a framework for practical paths, so as to help SMEs better respond to the opportunities and challenges brought by the digital era.