This study aims to clarify and comprehensively discuss the core success factors for digital transformation among small and medium enterprises (SMEs). The authors use a systematic literature review and thematic analysis to identify these factors, which include considering baseline, limitations, and idiosyncratic aspects to develop a strategic digitalization plan, starting with incremental improvements, and investing in education and continuous learning. The study highlights that while digital transformation can enhance organizational and financial performance, SMEs face challenges due to limited knowledge, financial constraints, cultural barriers, and collaboration issues. Previous research has often focused on specific aspects of digital transformation, such as managerial, manufacturing, supply chain, and information system aspects, but this study aims to provide a holistic framework by integrating these aspects. The paper also embeds SME digitalization within endogenous growth theory, integrating it with information systems and organizational financial aspects to offer a comprehensive framework for SME digitalization.This study aims to clarify and comprehensively discuss the core success factors for digital transformation among small and medium enterprises (SMEs). The authors use a systematic literature review and thematic analysis to identify these factors, which include considering baseline, limitations, and idiosyncratic aspects to develop a strategic digitalization plan, starting with incremental improvements, and investing in education and continuous learning. The study highlights that while digital transformation can enhance organizational and financial performance, SMEs face challenges due to limited knowledge, financial constraints, cultural barriers, and collaboration issues. Previous research has often focused on specific aspects of digital transformation, such as managerial, manufacturing, supply chain, and information system aspects, but this study aims to provide a holistic framework by integrating these aspects. The paper also embeds SME digitalization within endogenous growth theory, integrating it with information systems and organizational financial aspects to offer a comprehensive framework for SME digitalization.