Effect of Digital Skills on the Performance of Nano, Micro, Small and Medium Scale Enterprises in Akure, Ondo State

ABSTRACT
The increasing role of digital technology in the global economy has made digital skills essential for the survival and growth of businesses, particularly among Nano, Micro, Small, and Medium-Scale Enterprises (NMSMEs). This study examines the effect of digital skills on the performance of NMSMEs in Akure, Ondo State, Nigeria. The research aims to assess the current level of digital skills among NMSMEs, investigate how they perceive the importance of digitalization, and evaluate the impact of digital skills on performance indicators such as revenue growth, profitability, market share, and customer satisfaction.
A descriptive research design was adopted, utilizing both qualitative and quantitative approaches. Data were collected through structured questionnaires administered to 190 NMSME owners and managers in Akure. The data were analyzed using descriptive statistics, such as frequency and percentage distributions, and inferential statistics, including correlation and regression analysis, to examine the relationships between digital skills and business performance.
The findings reveal that the majority of NMSMEs in Akure possess basic digital skills, with a significant portion using digital tools for marketing, customer engagement, and financial management. However, advanced digital skills such as data analytics and e-commerce integration are less prevalent. The study further shows that NMSMEs recognize the importance of digital skills in enhancing their competitiveness and performance. Moreover, the regression analysis indicates a positive and statistically significant relationship between digital skills and key performance indicators, particularly revenue growth and customer satisfaction.
The study concludes that improving digital skills among NMSMEs is crucial for enhancing their performance and competitiveness in the digital economy. It recommends that government agencies, business development organizations, and stakeholders should prioritize digital skill training and provide accessible digital tools to support the growth of NMSMEs in Akure.
Keywords: Digital Skills, Business Performance, NMSMEs, Akure, Revenue Growth, Customer Satisfaction