Small and medium-sized enterprises (SMEs) still depend heavily on tacit, experience-based know-how that rarely makes its way into formal documentation. This paper introduces a large-language-model (LLM)-driven conversational assistant that captures such knowledge on the shop floor and converts it incrementally and interactively into standards-compliant Business Process Model and Notation (BPMN) 2.0 diagrams. Powered by Gemini 2.5 Pro and delivered through a lightweight Gradio front-end with client-side bpmn-js visualisation, the assistant conducts an interview-style dialogue: it elicits process details, supports clarifying dialogue and on-demand analysis, and renders live diagrams that users can refine in real time. A proof-of-concept evaluation in an equipment-maintenance scenario shows that the chatbot produced an accurate "AS-IS" model, flagged issues via on-diagram annotations, and generated an improved "TO-BE" variant, all within about 12-minutes, while keeping API costs within an SME-friendly budget. The study analyses latency sources, model-selection trade-offs, and the challenges of enforcing strict XML schemas, then outlines a roadmap toward agentic and multimodal deployments. The results demonstrate that conversational LLMs can potentially be used to lower the skill and cost barriers to rigorous process documentation, helping SMEs preserve institutional knowledge, enhance operational transparency, and accelerate continuous-improvement efforts.

The adoption of artificial intelligence (AI) offers transformative potential for small and medium-sized enterprises (SMEs), particularly in enhancing financial decision-making processes. However, SMEs often face significant barriers to implementing AI technologies, including limited resources, technical expertise, and data management capabilities. This paper presents a conceptual model for the adoption of AI in financial decision-making for SMEs. The proposed model addresses key challenges faced by SMEs, including limited resources, technical expertise, and data management capabilities. The model is structured into layers: data sources, data processing and integration, AI model deployment, decision support and automation, and validation and risk management. By implementing AI incrementally, SMEs can optimize financial forecasting, budgeting, investment strategies, and risk management. This paper highlights the importance of data quality and continuous model validation, providing a practical roadmap for SMEs to integrate AI into their financial operations. The study concludes with implications for SMEs adopting AI-driven financial processes and suggests areas for future research in AI applications for SME finance.

We provide non-asymptotic convergence rates for LSE and SME under i.i.d.

Small and medium-sized enterprises (SMEs) represent 99.9% of U.S. businesses yet remain systematically excluded from AI due to a mismatch between their operational scale and modern machine learning's data requirements. This paper introduces SmallML, a Bayesian transfer learning framework achieving enterprise-level prediction accuracy with datasets as small as 50-200 observations. We develop a three-layer architecture integrating transfer learning, hierarchical Bayesian modeling, and conformal prediction. Layer 1 extracts informative priors from 22,673 public records using a SHAP-based procedure transferring knowledge from gradient boosting to logistic regression. Layer 2 implements hierarchical pooling across J=5-50 SMEs with adaptive shrinkage, balancing population patterns with entity-specific characteristics. Layer 3 provides conformal sets with finite-sample coverage guarantees P(y in C(x)) >= 1-alpha for distribution-free uncertainty quantification. Validation on customer churn data demonstrates 96.7% +/- 4.2% AUC with 100 observations per business -- a +24.2 point improvement over independent logistic regression (72.5% +/- 8.1%), with p < 0.000001. Conformal prediction achieves 92% empirical coverage at 90% target. Training completes in 33 minutes on standard CPU hardware. By enabling enterprise-grade predictions for 33 million U.S. SMEs previously excluded from machine learning, SmallML addresses a critical gap in AI democratization. Keywords: Bayesian transfer learning, hierarchical models, conformal prediction, small-data analytics, SME machine learning

Artificial Intelligence (AI) and Large Language Models (LLMs) are revolutionizing today's business practices; however, their adoption within small and medium-sized enterprises (SMEs) raises serious trust, ethical, and technical issues. In this perspective paper, we introduce a structured, multi-phased framework, "SME-TEAM" for the secure and responsible use of these technologies in SMEs. Based on a conceptual structure of four key pillars, i.e., Data, Algorithms, Human Oversight, and Model Architecture, SME-TEAM bridges theoretical ethical principles with operational practice, enhancing AI capabilities across a wide range of applications in SMEs. Ultimately, this paper provides a structured roadmap for the adoption of these emerging technologies, positioning trust and ethics as a driving force for resilience, competitiveness, and sustainable innovation within the area of business analytics and SMEs.

Small and Medium-sized Enterprises (SMEs) are known to play a vital role in economic growth, employment, and innovation. However, they tend to face significant challenges in accessing credit due to limited financial histories, collateral constraints, and exposure to macroeconomic shocks. These challenges make an accurate credit risk assessment by lenders crucial, particularly since SMEs frequently operate within interconnected firm networks through which default risk can propagate. This paper presents and tests a novel approach for modelling the risk of SME credit, using a unique large data set of SME loans provided by a prominent financial institution. Specifically, our approach employs Graph Neural Networks to predict SME default using multilayer network data derived from common ownership and financial transactions between firms. We show that combining this information with traditional structured data not only improves application scoring performance, but also explicitly models contagion risk between companies. Further analysis shows how the directionality and intensity of these connections influence financial risk contagion, offering a deeper understanding of the underlying processes. Our findings highlight the predictive power of network data, as well as the role of supply chain networks in exposing SMEs to correlated default risk.

We provide non-asymptotic convergence rates for LSE and SME under i.i.d.

Artificial Intelligence (AI) has transitioned from a futuristic concept reserved for large corporations to a present-day, accessible, and essential growth lever for Small and Medium-sized Enterprises (SMEs). For entrepreneurs and business leaders, strategic AI adoption is no longer an option but an imperative for competitiveness, operational efficiency, and long-term survival. This report provides a comprehensive framework for SME leaders to navigate this technological shift, offering the foundational knowledge, business case, practical applications, and strategic guidance necessary to harness the power of AI. The quantitative evidence supporting AI adoption is compelling; 91% of SMEs using AI report that it directly boosts their revenue. Beyond top-line growth, AI drives profound operational efficiencies, with studies showing it can reduce operational costs by up to 30% and save businesses more than 20 hours of valuable time each month. This transformation is occurring within the context of a seismic economic shift; the global AI market is projected to surge from $233.46 Billion in 2024 to an astonishing $1.77 Trillion by 2032. This paper demystifies the core concepts of AI, presents a business case based on market data, details practical applications, and lays out a phased, actionable adoption strategy.