Digital transformation (DT) has emerged as a critical enabler of competitiveness and innovation across industries; however, small and medium-sized enterprises (SMEs) face unique challenges in adopting and integrating digital technologies. This article explores the key barriers to digital transformation in resource-constrained SMEs, including limited financial capacity, skills shortages, inadequate infrastructure, and cultural resistance to change. Drawing on a combination of recent literature, case studies, and qualitative data, the study identifies practical strategies and enablers that have supported successful transformation initiatives. These include phased technology adoption, leveraging government and industry support programs, strategic partnerships, and agile change management approaches. The article highlights the importance of leadership commitment, digital literacy, and a clear digital vision in overcoming transformation inertia. It contributes to both academic and practitioner understanding by offering a framework for navigating digital transformation within the limitations of smaller firms. The findings are particularly relevant for policymakers, SME leaders, and support organisations seeking to foster inclusive and scalable digital innovation in the SME sector.