Digital Entrepreneurship As Factors Fostering The Performance Of Small And Medium-Scale Enterprises (SMEs)

Abstract

The study examined digital entrepreneurship as a factor fostering the operational effectiveness of small and medium-scale enterprises (SMEs). Three research questions and two hypotheses guided the study. A correlation research design was used. The population comprised SME operators in the Sagamu local government area. A total of 50 SME operators were selected as the sample size. Researcher developed questionnaire tagged: ‘Digital Entrepreneurship and SMEs Performance Questionnaire (DESMEQ)’ with (r = .95) as reliability coefficient was used for data collection. Research questions were answered using descriptive statistics of mean and standard deviation. Hypothesis 1 was tested using regression analysis. The findings of the study revealed that lack of financial support, poor management, corruption, lack of training and experience, inadequate infrastructure, insufficient profits and low demand for products and services were among the factors affecting the effective performance of SMEs in Nigeria. Cost reduction, enhanced business flexibility, potential for business growth, improved customer experience, easier access to customers, increased return on investment, and faster data collection were among the benefits of digital entrepreneurship for SMEs' effective performance. There was a significant influence of digital entrepreneurship on the effective performance of SMEs. Schemes for promotional assistance should prioritise the building and managing of a robust online presence to improve SME performance further. The SMEs in Nigeria should prioritise the development of innovative technological solutions through extensive research and development, fostered by collaborative efforts, as this approach holds the greatest potential for driving sustainable growth.