Digital Entrepreneurship Competency and the Performance of MSMEs in North-Eastern Nigeria

Abstract

This study examined the relationship between digital entrepreneurship competencies and MSME performance in North-Eastern Nigeria. Specifically, the study investigated the effect of e-commerce skills on market reach, assessed how digital financial literacy influences revenue growth, and explored the impact of social media marketing on operational efficiency. The study adopted a survey design. Data were collected through a structured questionnaire from 393 MSME owners and managers across the six states in the region. Data were analyzed using descriptive statistics such as frequency counts, percentages and means, while linear regression was used to test the null hypotheses. Findings from the study revealed that e-commerce skills significantly affect MSMEs’ market reach (B = 0.473, R² = 0.068, p < 0.001). Digital financial literacy significantly influences revenue growth (B = 0.511, R² = 0.072, p < 0.001). Likewise, social media marketing significantly impacts operational efficiency (B = 0.430, R² = 0.160, p < 0.001). The study concludes that digital entrepreneurship competencies significantly contribute to MSME performance, although their explanatory power varies across the performance dimensions examined. The study recommends, among others, that MSME operators should receive targeted training, supportive policies, and capacity-building initiatives to maximize the benefits of digital entrepreneurship in the region..