Digital Entrepreneurship and Performance of Micro, Small and Medium Enterprises (Msmes) in South-West Nigeria

Micro, Small, and Medium Enterprises (MSMEs) in Nigeria particularly in the Southwest region operate in fast-paced, dynamic environments, similar to other global markets. Due to their size and nature, these businesses are constantly challenged to find innovative ways to adapt to ongoing changes in today’s skills-based and technology-driven economy. Against this backdrop, the present study focused on examining the role of digital entrepreneurship in enhancing the performance of MSMEs in Southwest Nigeria. The research explored the challenges and potential opportunities associated with the digitalization of business operations, in line with the study’s core objectives. Primary data served as the sole source of information, and a quantitative research approach was adopted, utilizing a field survey method. A structured questionnaire was employed as the primary research instrument to facilitate the identification of statistically significant outcomes from the data collected. Three states in the Southwest Lagos, Ogun, and Oyo were purposively selected due to their high concentration of MSMEs. Specifically, the capital cities of each state were targeted for the administration of questionnaires. The study population included 9,886,473 MSMEs, and the sample size was determined using Taro Yamane's formula, yielding approximately 400 respondents. Questionnaires were distributed randomly to owner-managers of MSMEs across the selected states, with the assistance of trained research personnel. A five-point Likert scale was used in the questionnaire, ranging from 5 (Strongly Agree) to 1 (Strongly Disagree). The collected data were analyzed using both descriptive and inferential statistical tools. Descriptive statistics included frequency, percentage, mean, and standard deviation, while regression analysis and ANOVA were employed for inferential statistics. Findings from the study revealed a significant positive impact of digital entrepreneurship on the efficiency of production and operations management among MSMEs in Southwest Nigeria (F = 167.239, p = 0.000). Based on this, the study concluded that digital entrepreneurship significantly influences the operational performance of MSMEs in the region. Consequently, it recommends that MSMEs seeking to improve operational efficiency should adopt digital solutions, leverage digital platforms, digitalize their entrepreneurial processes, and implement digitally driven business models to remain competitive and sustainable.