Perception of SMEs in East Java on Digitalization Transformation in Business

The COVID-19 pandemic has forced SMEs to be able to innovate and transform their businesses into business digitization. It certainly changes the traditional way of selling with an online system. This study aims to analyze the perception of SMEs toward digitalization in business, marketing strategies, and SMEs interest in digital marketing. This research method used is the descriptive quantitative method. Data collection was done using a Google survey. The study results showed that SMEs’ perception toward business digitization was excellent, as its easier for the sellers and buyers to make transactions without meeting. Business digitization can increase revenue turnover, have clearer operating hours, and make it easier to recap sales results. However, SMEs are still in the transition stage to online marketing. Some who have digitized their business prefer ads on free social media. Some still use the traditional method of distributing posters and pamphlets. The interest of SME actors is very high, but it is not followed by effective practice. Keywords: business, digitalization transformation, perception, small medium enterprise