Digital Entrepreneurship and Small and Medium Scale Enterprises (SMEs) Performance in Osun State, Nigeria

Abstract

This study examined the influence of digital entrepreneurship on the performance of Small and Medium Enterprises (SMEs) in Osun State, Nigeria. A survey research design was employed, and data were collected from 245 SME respondents across the Production, Trading, and Services sectors using structured questionnaires. Descriptive analysis revealed widespread adoption of digital entrepreneurship tools. Multiple regression results showed that E-commerce adoption (t = 6.64, â = 0.296), digital services (t = 7.45, â = 0.313) and software development (t = 6.73, â = 0.353) all had positive influence on SME performance, with digital services exerting the strongest impact. SMEs leveraging these tools reported improved operational efficiency, improved customer engagement, and increased financial performance. The results further highlighted the importance of contextual factors such as infrastructure quality, market readiness, and user capabilities in promoting the benefits of digital adoption. In conclusion, the study demonstrated that strategic adoption and integration of digital entrepreneurship tools, combined with skills development and supportive infrastructure, can enhance SME performance and competitiveness in Osun State. It recommended that policymakers, SME owners, and technology providers collaborate to strengthen digital literacy, optimize digital services, and improve enabling infrastructure to maximize performance outcomes, sustain growth, and foster long-term resilience.