Small and Medium Enterprises (SMEs) play a crucial role in the global economy but often face significant challenges when adopting new technologies like Big Data. While Big Data offers opportunities for improving decision-making, operational efficiency, and gaining a competitive edge, many SMEs struggle due to financial constraints, limited technical expertise, and concerns over data security and privacy. This paper explores the challenges SMEs encounter in adopting Big Data and identifies the opportunities it provides for growth and innovation. A mixed-methods approach is employed, combining qualitative interviews with SME managers and quantitative surveys from 150 SMEs to gather comprehensive data. The findings reveal that SMEs face barriers such as high implementation costs and lack of skilled personnel, but they also recognize the potential for Big Data to enhance customer insights, improve business processes, and foster new business models. Recommendations include exploring cost-effective solutions, investing in employee training, strengthening data security, and adopting modular systems that integrate easily with existing operations. This study underscores the importance of overcoming these challenges and leveraging Big Data as a key driver of digital transformation for SMEs, ultimately helping them to compete more effectively in an increasingly data-driven marketplace.