ABSTRACT
The study explores the awareness of digital transformation among small and medium enterprises (SMEs) in Nigeria, emphasizing the potential of digital technologies to enhance business performance and economic growth. Despite the significant role SMEs play in addressing Nigeria’s socio-economic issues, they face numerous challenges, including high failure rates and market pressures exacerbated by globalization and technological advancements. This research investigates SMEs’ awareness of the impact of digital transformation on their operations, their current utilization of digital technologies, their intent to implement digital transformation strategies, and the challenges they encounter in doing so.
Using the Spearman Correlation Method (SCM) and the Statistical Package for Social Sciences (SPSS), data were statistically analyzed to test four null hypotheses related to the awareness and implementation of digital transformation among Nigerian SMEs. The findings indicate that SMEs are aware of the potential impacts and benefits of digital transformation and intend to implement such strategies. However, they face significant challenges, including inadequate ICT infrastructure, unfavorable government policies, and technological constraints.
The study focuses on SMEs In Ugbowo, Benin City, Edo State, providing a case study that reflects broader trends and issues within the Nigerian SME sector. The findings highlight the critical need for enhanced digital skills among SME managers and employees, improved infrastructure, and supportive government policies to facilitate the successful adoption of digital technologies. This research underscores the transformative potential of digitalization for SMEs in Nigeria and the urgent need to address the barriers hindering their digital progress.
