Digital entrepreneurship and small- and medium-scale enterprises (SME) development in South East Nigeria

Purpose This study investigates the influence of digital entrepreneurship on small- and medium-sized enterprises (SMEs) development in South East Nigeria. Design/methodology/approach A descriptive survey design was used. The sample size was determined based on the Borg & Gall formula, resulting in a total of 1,377 respondents. A structured questionnaire was developed and administered to 1,377 small- and medium-scale businesses cut across the States. Descriptive statistics, such as frequencies, percentages, means and standard deviations, were utilized to summarize survey responses. The study also used multiple regression analysis for data analysis at 5% level of significance. Findings Findings revealed that e-commerce transactions and digital business model adoption significantly and positively impact SME development, while digital skills show a modest effect. Access to digital financial services is not statistically significant, indicating persistent barriers to financial inclusion. Human capital variables, particularly education, work experience and managerial competence, also emerge as critical enablers. The findings underscore the need for integrated digital and human capital strategies to enhance SME resilience and growth. These relationships are interpreted through social network, social capital and institutional theory to explain how digital tools interact with embedded SME systems in South East Nigeria. Originality/value This study contributes to the literature on digital entrepreneurship in emerging economies by disaggregating it into four key dimensions of e-commerce transactions, adoption of digital business models, extent of digital skill acquisition as well as determining the extent of access to digital financial services and empirically assessing their effects on SME development in South East Nigeria. The study offers actionable insights for policymakers, SME support institutions, fintech firms and digital skills providers by identifying which digital components most effectively drive SME growth in institutionally constrained environments.