The purpose of this study is to identify the relevance of the problem of adaptation of small and medium-sized businesses (SME) in Latvia to the rapid development of technology. The authors raise fears that in the modern era of technology development there can be a big gap in the innovation of business models of SMEs in comparison with large enterprises that have the resources necessary for innovation. As a result, SMEs will be under rough conditions to develop their consumer segment, while maintaining the competitiveness of the enterprise. A question is raised about the need to create accessible tools for digital transformation of business models for small and medium-sized businesses. Methods used for this study: 1) analysis of scientific and business literature, research conducted by world and local organizations, 2) interviews, and 3) generalization of the research experience of authors. The paper has been elaborated within the project 5.2.2 “The Development of Innovation and Entrepreneurship in Latvia in Compliance with the Smart Specialization Strategy” of the National Research Programme 5.2 “Economic Transformation, Smart Growth, Governance and Legal Framework for the State and Society for Sustainable Development – A New Approach to the Creation of a Sustainable Learning Community (EKOSOC-LV)”.