Abstract

Business Analytics (BA) has emerged as a critical tool for improving decision-making processes in organizations worldwide, including Small and Medium Enterprises (SMEs) in emerging economies like Bangladesh. SMEs form the backbone of Bangladesh’s economy, but they face unique challenges such as resource constraints, limited access to reliable data, and a rapidly changing market environment. Despite the advantages that BA tools offer in enhancing operational efficiency, competitiveness, and overall business performance, SMEs in Bangladesh are slow to adopt these technologies due to various barriers, including high implementation costs, lack of technical expertise, and resistance to change. This study investigates the adoption of BA in SMEs in Bangladesh, focusing on the factors, challenges, and benefits that influence their decision-making processes. A mixed-method approach was adopted, incorporating both quantitative surveys and qualitative interviews with SME owners, directors, and industry experts. The research identifies key drivers and obstacles to BA adoption, with a focus on factors such as technological infrastructure, data access, skills gaps, and organizational culture. Additionally, it explores how SMEs utilize BA tools, such as predictive analytics, data visualization, and business intelligence, to address marketing problems, including market forecasting, customer targeting, and supply chain management. The findings reveal that SMEs that integrate BA into their decision-making processes experience improvements in customer satisfaction, inventory control, and profitability. BA tools help these businesses allocate resources more efficiently, identify market opportunities, and enhance their competitive advantage. However, significant challenges persist, especially with regard to the high costs associated with BA adoption and a lack of skilled personnel. Furthermore, the reluctance of traditional business leaders to embrace technological change continues to hinder the widespread adoption of BA practices. This research highlights the importance of government and institutional support in facilitating the adoption of BA in SMEs. Recommendations include the provision of skills enhancement programs, technology adoption incentives, and increased awareness campaigns to overcome existing barriers. Cloud-based BA solutions are identified as a practical and cost-effective alternative for SMEs with limited financial resources. Additionally, partnerships with technology vendors and business consultants are crucial for the successful implementation and sustained use of BA tools in SMEs. This study contributes to the growing body of literature on the role of business analytics in SME decision-making, particularly in developing countries. By offering insights into the advantages and barriers to BA adoption, this research provides valuable recommendations for policymakers, business leaders, and academics interested in enhancing the competitiveness of SMEs in Bangladesh. The study suggests that while the adoption of BA in Bangladeshi SMEs is still in its early stages, there is significant potential for improving business processes and making SMEs more competitive in the global market. Ultimately, the adoption of business analytics can transform SMEs in Bangladesh by improving efficiency, enabling data-driven decision-making, and enhancing their role in the country’s economic development.