Small and medium-sized businesses (SMEs) can range greatly in size and scope, and there is a lot of room for interpretation when assessing their potential and viability in relation to broader socioeconomic factors. Economic progress necessitates an understanding of knowledge management inside SMEs, especially in cases when goals and practices inherited from large organizations prove to be ineffective or unwanted. To hasten the digital transformation of SMEs in manufacturing, this research examines the main obstacles faced by these companies while implementing KM and finds the crucial strategies for overcoming them. From multinational conglomerates to mom-and-pop shops, many businesses place a premium on knowledge management (KM) and the effective deployment of KMS. It has already been mentioned that SMEs are susceptible to knowledge loss. Use of KM methods in SMEs has been linked to several outcomes, such as knowledge development stage, organizational performance, and innovativeness. A deluge of information resources, organized and unorganized, are produced by this practice. Information that is structured comes from procedures like product life-cycle management (PLM), financial operations, monitoring, and testing throughout manufacturing.