(noob) 2D sprite jagged edges as smaller?

I am pretty new to graphic design and unity so I’ve been messing around a bit with illustrator and unity.

I made this little spaceship as a prototype but when I bring it into unity and attempt to scale it to a smaller size to fit the level it gets very jagged and ugly.

I understand its not vector anymore like it is in illustrator, but the fullsize image looks reasonable and when I make it smaller in unity it gets very ugly as you can see.

Is there a way around this? I see other unity games with nice crisp graphics and was wondering what process they did to do that?

here is an image of what I mena

Check your sprite import settings, looks like your import resolution is too low

23840-importsettings.png