Conference Paper

Digital Transformation Tools and Inclusive Growth of Micro-Enterprises in Ogun State, Nigeria

This study examines the effect of digital transformation tools on the inclusive growth of micro-enterprises in Ogun State, Nigeria; focusing on digital payment adoption, e-commerce adoption and social media marketing. A survey research design was used and data was gathered from 127 micro enterprise operators by administering structured questionnaire. Cronbach's alpha coefficient of 0.768 was used to test the reliability of the instrument. Descriptive statistics, Pearson correlation and multiple regression analysis were used to analyse the data. The results showed that the dimensions of the digital transformation together accounted for 77.1% of the variance in inclusive growth (R2 = 0.771, F = 138.223, p < 0.001). The adoption of digital payment was found to have a negative and insignificant impact on inclusive growth (β = -0.058, p = 0.187). The adoption of e-commerce, however, had a positive and significant influence (β = 0.262, p < 0.001) and social media marketing showed the highest positive influence (β = 0.676, p < 0.001). The study therefore concludes that the adoption of e-commerce and social media marketing are key factors that can contribute to inclusive growth of the micro-enterprises in Ogun State. To boost business growth and economic inclusion, the study calls for more investment in enhancing digital marketing skills, e-commerce platforms, and digital skills training. The study also recommends that financial institutions and fintech should make digital payment systems more accessible, affordable and reliable. Also, the service providers need to invest more in the network, especially in underserved and rural areas. The expansion of fibre networks, transmission facilities and base stations will increase the coverage and quality of the network, plus decrease congestion. Keywords: Digital transformation, digital payment adoption, e-commerce adoption, social media marketing, inclusive growth, micro-enterprises.