Small enterprises are essential to economic expansion but need help implementing new technology and promoting creativity. In order to analyze the main forces behind, obstacles to, and effects of technology adoption and innovation in the small company sector, this literature review synthesizes current research. The results show that while resource limitations, a lack of skilled workers, and a sense of risk are the main obstacles to technology adoption, strategic vision, competitive pressure, and perceived advantages are essential drivers. Small organizations frequently need to catch up with organizational and procedural innovation but fall behind in product innovation. Resource constraints may be addressed through open innovation and collaboration. Although a broad correlation exists between increased company success and technology adoption and innovation, this link is nuanced and context-dependent. Small business leaders should create strategic technological roadmaps, deal with budget limitations, improve digital skills, and promote an innovative culture to use these insights. Governments may help small enterprises by implementing focused initiatives and providing forums for information exchange. A small business's ability to successfully use innovation and technology is essential in the digital age.