Project – Effect of Digital Entrepreneurship Skills on the Growth of Youth-Owned Businesses. A Study of Selected Youth Entrepreneurs in Aba Market

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Entrepreneurship remains an important instrument for economic development because it facilitates employment creation, income generation, innovation, wealth creation and the utilisation of economic resources. This importance is particularly pronounced in developing economies such as Nigeria, where the formal labour market has not always expanded sufficiently to accommodate the growing number of young people entering the labour force. Youth-owned businesses therefore provide an alternative means through which young people can participate in economic activities, generate livelihoods and contribute to local economic development. The Global Entrepreneurship Monitor has consistently identified entrepreneurial activity as an important component of economic participation, while also noting that entrepreneurs in developing economies frequently encounter challenges relating to finance, skills, infrastructure and market access (GEM, 2024). In Nigeria, the development of entrepreneurship is also closely connected with the country’s large youth population and the need to create productive opportunities outside conventional wage employment. Consequently, strengthening the capacity of young entrepreneurs to establish, manage and expand sustainable businesses remains an important economic and developmental concern.

The rapid development of digital technologies has significantly transformed the nature of entrepreneurship and the way businesses create and capture value. Digital technologies have changed how entrepreneurs identify opportunities, communicate with customers, promote products, conduct transactions, access information and organise business operations. Digital entrepreneurship therefore extends beyond simply owning a business that uses computers or smartphones; it involves the strategic application of digital technologies in the identification, exploitation and development of entrepreneurial opportunities. Nambisan (2017) explains that digital technologies have fundamentally changed the entrepreneurial process by creating new forms of opportunities, resources and market interactions. Similarly, Sussan and Acs (2017) argue that digital entrepreneurial ecosystems provide entrepreneurs with access to digital platforms, networks, knowledge and other resources that can facilitate entrepreneurial activities. Nambisan, Wright and Feldman (2019) further contend that digital transformation has altered innovation and entrepreneurship by enabling firms to experiment with new business models and interact with markets in new ways. These developments suggest that the ability of entrepreneurs to understand and use digital technologies is increasingly becoming an important component of contemporary entrepreneurial capability.

Digital entrepreneurship skills refer to the knowledge, competencies and practical abilities that enable entrepreneurs to use digital technologies to establish, operate, market and expand their businesses. Such skills may include digital marketing, social media management, e-commerce, electronic payment management, online customer relationship management, digital content creation, digital communication, information management and the use of digital tools for business decision-making. The importance of these competencies is reinforced by the Organisation for Economic Co-operation and Development (OECD, 2021), which identifies digital capabilities as increasingly important for small businesses because digital technologies can improve access to markets, information, customers and business networks. The World Bank (2019) similarly identified digital skills as one of the foundations required for Nigeria to develop an inclusive digital economy. From the perspective of the resource-based view, skills and knowledge can constitute valuable organisational resources when they enable firms to perform activities better than competitors (Barney, 1991). Therefore, digital entrepreneurship skills may constitute a valuable human and organisational resource capable of improving the competitiveness and growth prospects of youth-owned businesses.

One major area in which digital entrepreneurship skills can contribute to business growth is digital marketing. Traditional marketing methods often require substantial financial resources and may restrict small businesses to customers within their immediate geographical environment. Digital marketing enables entrepreneurs to use social media platforms, messaging applications, websites, online advertisements and digital content to communicate with existing and potential customers. Dwivedi et al. (2021) explain that digital and social media marketing have transformed customer engagement by providing businesses with opportunities for real-time interaction, targeted communication and relationship development. For youth-owned businesses, particularly those operating with limited capital, digital marketing may provide relatively affordable ways of increasing visibility and attracting customers. Recent Nigerian evidence also supports the relevance of digital platforms to business performance. Ononye, Okwechime and Ehigiator (2025), in a study involving SME owners in Nigeria, found that social media use significantly improved SME performance, while digital literacy and entrepreneurial orientation also contributed positively to performance. This suggests that the benefits of digital platforms may depend partly on the skills and capabilities possessed by the entrepreneurs using them.

E-commerce and digital financial skills represent another important dimension of digital entrepreneurship. E-commerce enables entrepreneurs to display products online, communicate with customers, receive orders, process transactions and serve customers beyond their immediate physical location. Digital financial skills, on the other hand, enable entrepreneurs to use electronic transfers, mobile payments, online banking, digital records and other technology-enabled financial services. These skills can potentially improve the efficiency of transactions and expand the ways in which customers can interact with businesses. Research on digital entrepreneurship in Nigeria provides evidence that these capabilities are becoming increasingly relevant to enterprise development. Iyanda, Abbo and Shuaibu (2026), for example, found that digital entrepreneurship competencies, including e-commerce skills, digital financial literacy and social media marketing, were associated with dimensions of MSME performance in North-Eastern Nigeria. Similarly, Okonkwo, Orajaka, Ezeokafor and Oguejiofor (2026) found that e-commerce transactions and digital business-model adoption positively influenced SME development in South-East Nigeria, although the effect of digital skills itself was more modest. These findings indicate that digital entrepreneurship skills can potentially improve business outcomes, but the extent of their influence may depend on how effectively entrepreneurs integrate digital tools into their business processes.

The Nigerian entrepreneurial environment provides an important setting for examining the relationship between digital entrepreneurship skills and business growth. Nigerian entrepreneurs operate in an environment characterised by intense competition, changing consumer preferences, infrastructure challenges, economic pressures and increasing digitalisation. The World Bank (2019) noted that Nigeria possesses considerable potential for digital entrepreneurship because of its large population, entrepreneurial culture and growing technology ecosystem, but also identified weaknesses in digital skills and infrastructure as important constraints. The OECD (2021) similarly emphasises that small businesses may fail to obtain the full benefits of digitalisation where owners lack the skills and organisational capabilities required to integrate technology effectively. These challenges are particularly relevant to young entrepreneurs, who may possess enthusiasm and willingness to adopt new technologies but may have limited formal business training or financial resources. Thus, the availability of digital technology alone may not be sufficient to produce business growth; entrepreneurs must possess the competencies required to convert available technologies into productive business resources.

Aba provides a particularly relevant commercial environment for examining digital entrepreneurship and youth-owned businesses because it has long been recognised as an important entrepreneurial and trading centre in South-East Nigeria. The city’s commercial ecosystem includes manufacturing, wholesale and retail activities, fashion, footwear, leather products, electronics and other forms of enterprise. In such a competitive market environment, young entrepreneurs need to develop capabilities that enable them to identify customers, promote products, differentiate their businesses and respond quickly to changing market conditions. Recent research specifically examining SMEs in Aba found that the use of social media platforms such as Facebook, Instagram and WhatsApp was positively associated with business performance, with the platforms supporting product promotion, customer communication and transactional efficiency (Okechukwu, Jibril, & Nuhu, 2025). This evidence is important because it demonstrates that digital technologies are already relevant to businesses operating within Aba’s commercial environment. However, the effective use of these technologies requires practical skills, and differences in the digital capabilities of entrepreneurs may determine whether digital tools merely support routine communication or actually contribute to business expansion.

Business growth is an important indicator for assessing the success and sustainability of youth-owned enterprises. Growth may be reflected in increased sales revenue, expansion of the customer base, increased profitability, greater market reach, introduction of new products, increased business assets and expansion of business operations. Entrepreneurial competence has long been recognised as an important factor influencing the ability of small businesses to compete and grow. Man, Lau and Chan (2002) conceptualised entrepreneurial competencies as characteristics that enable entrepreneurs to perform effectively and improve the competitiveness of their enterprises, while Mitchelmore and Rowley (2010) emphasised the importance of competencies such as opportunity recognition, strategic thinking, organising and relationship-building in entrepreneurial success. In the digital economy, these traditional competencies increasingly intersect with digital capabilities. An entrepreneur may recognise an opportunity but still fail to exploit it if they cannot use digital platforms to reach customers, process transactions, analyse market information or manage online relationships. Thus, digital entrepreneurship skills can potentially strengthen the capacity of young business owners to convert entrepreneurial opportunities into measurable business growth.

The relationship between digital entrepreneurship skills and business growth can also be explained through the dynamic capabilities perspective. Teece (2007) argues that organisations operating in changing environments need the capacity to sense opportunities, seize them and reconfigure their resources in response to environmental changes. Digital technologies are particularly relevant to this process because they enable entrepreneurs to monitor customer preferences, identify emerging markets, communicate rapidly and adjust business strategies. Youth-owned businesses that possess strong digital capabilities may therefore be better positioned to respond to changes in consumer behaviour and competitive conditions. Recent research among youth-owned MSMEs in Nigeria found that social commerce and digital transformation are increasingly relevant to the sustainability and performance of young-owned enterprises, particularly through technologies such as social media and digital analytics (Muhammad, Adalier, & Adeshola, 2025). This suggests that digital entrepreneurship should be considered not merely as the use of technology but as a capability that can help young entrepreneurs continuously adapt their businesses to changing market conditions.

Despite the growing importance of digital technologies, there remains a distinction between having access to digital tools and possessing the skills required to use them productively. A young entrepreneur may own a smartphone and have social media accounts but may not know how to develop effective digital marketing strategies, analyse customer behaviour, manage online transactions, create compelling digital content or use digital information for business decisions. This skills gap can limit the contribution of technology to business growth. The World Bank (2019) and OECD (2021) both emphasise the importance of digital skills and capabilities for ensuring that businesses can obtain meaningful economic value from digital technologies. In the Nigerian context, recent evidence from South-East Nigeria indicates that digital entrepreneurship has significant potential for SME development, particularly through e-commerce and digital business-model adoption (Okonkwo et al., 2026). Therefore, understanding whether specific digital entrepreneurship skills contribute to the growth of youth-owned businesses is important for entrepreneurs, policymakers, business-support institutions and researchers.

Against this background, this study examines the effect of digital entrepreneurship skills on the growth of youth-owned businesses, using selected youth entrepreneurs in Aba Market as the study focus. The study concentrates on four major dimensions of digital entrepreneurship skills: digital marketing skills, e-commerce skills, digital financial literacy and digital business-management skills. These dimensions are considered relevant because they cover major areas through which young entrepreneurs can use digital technologies to attract customers, conduct transactions, manage finances and improve business operations. By examining their relationship with business growth, the study seeks to provide empirical evidence on whether possessing and applying digital entrepreneurship skills can improve the growth prospects of youth-owned businesses in Aba Market.

1.2 Statement of the Problem

Youth-owned businesses constitute an important part of entrepreneurial activity in Nigeria, yet many young entrepreneurs experience difficulties sustaining and expanding their enterprises. Although entrepreneurship provides opportunities for income generation and self-employment, establishing a business does not necessarily guarantee growth, profitability or long-term survival. Young entrepreneurs may encounter challenges such as limited finance, inadequate managerial knowledge, intense competition, limited market access and insufficient business skills. The World Bank (2019) identified skills deficiencies, infrastructure limitations and weaknesses in the broader entrepreneurial ecosystem as constraints to Nigeria’s digital economic development. Consequently, many young entrepreneurs may possess business ideas and entrepreneurial enthusiasm but lack some of the competencies necessary to transform those businesses into sustainable and growing enterprises.

A particular problem is the increasing gap between the availability of digital technologies and the ability of young entrepreneurs to use them effectively for business development. Smartphones, social media platforms, electronic payment systems and online marketplaces have become increasingly accessible, but access to these technologies does not automatically translate into effective digital entrepreneurship. Some youth entrepreneurs may use social media only for basic communication without applying digital marketing techniques, customer analytics or strategic content creation. Others may have access to electronic payment systems without possessing adequate digital financial-management skills. The OECD (2021) emphasises that digitalisation can generate benefits for small businesses only when entrepreneurs possess the skills and organisational capabilities necessary to integrate digital technologies into business activities. Thus, the problem is not simply lack of technology, but the extent to which young entrepreneurs possess and apply the appropriate digital skills.

Another problem concerns the ability of youth-owned businesses to achieve measurable growth in a highly competitive market environment. Aba’s commercial environment contains numerous businesses offering similar products and services, making customer acquisition, market differentiation and customer retention important challenges for entrepreneurs. Digital platforms can potentially help businesses overcome some of these challenges by expanding market reach, facilitating customer engagement and reducing the cost of promotion. However, recent evidence from Aba shows that social media platforms can improve SME performance when they are used strategically for product promotion, customer relationships and transactions (Okechukwu et al., 2025). Similarly, evidence from Nigerian MSMEs indicates that digital competencies such as e-commerce, digital financial literacy and social media marketing are relevant to business performance (Iyanda et al., 2026). Despite these findings, it remains unclear whether the specific digital entrepreneurship skills possessed by young entrepreneurs in Aba Market are sufficiently developed to produce significant business growth.

The central problem of this study, therefore, is the limited empirical evidence on the extent to which digital entrepreneurship skills influence the growth of youth-owned businesses in Aba Market. Existing studies have established the importance of digital technologies, social media, e-commerce and digital capabilities to SME performance, but findings from general SME populations or other geographical areas may not adequately explain the experiences of youth-owned businesses operating in Aba’s distinctive commercial environment. Furthermore, existing evidence suggests that different components of digital entrepreneurship may have different effects on business outcomes (Okonkwo et al., 2026; Ononye et al., 2025). There is therefore a need to specifically investigate whether digital marketing skills, e-commerce skills, digital financial literacy and digital business-management skills significantly affect the growth of youth-owned businesses in Aba Market. The findings of this study may provide useful evidence for young entrepreneurs, government agencies, entrepreneurship-development institutions and other stakeholders interested in strengthening youth enterprise development.

1.3 Objectives of the Study

The general objective of this study is to examine the effect of digital entrepreneurship skills on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market.

The specific objectives are to:

1. examine the effect of digital marketing skills on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market;
2. determine the effect of e-commerce skills on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market;
3. assess the effect of digital financial literacy on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market; and
4. examine the effect of digital business-management skills on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market.

1.4 Research Questions

The following research questions will guide the study:

1. What effect do digital marketing skills have on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market?
2. What effect do e-commerce skills have on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market?
3. To what extent does digital financial literacy affect the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market?
4. What effect do digital business-management skills have on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market?

1.5 Research Hypothesis

The following null hypothesis will be tested at the 0.05 level of significance:

H₀: Digital entrepreneurship skills have no significant effect on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market.

1.6 Significance of the Study

The study will be significant to youth entrepreneurs because it will provide evidence on the digital skills that may contribute to business growth. The findings may help young business owners understand the importance of developing competencies in digital marketing, e-commerce, digital financial management and digital business operations. Such knowledge may encourage youth entrepreneurs to move beyond basic use of digital devices and adopt digital technologies as strategic business resources.

The study will also be beneficial to business owners and managers in Aba Market. The findings may help entrepreneurs identify specific areas in which digital skills can improve customer acquisition, market reach, sales, financial management and operational efficiency. The study may also encourage entrepreneurs to integrate digital technologies into their existing business models rather than treating digital platforms as separate from their core business activities.

The study will be useful to government agencies and policymakers responsible for youth empowerment, entrepreneurship development and digital economic development. The findings may provide evidence that can support the design of entrepreneurship-development programmes that combine conventional business education with practical digital skills. Such programmes may include digital marketing, e-commerce, electronic financial management, online customer management and digital business analytics.

The study will also benefit financial institutions, entrepreneurship-support organisations and non-governmental organisations involved in youth enterprise development. The findings may help these organisations design training, mentoring and capacity-building programmes that address specific digital competency gaps among young entrepreneurs. This is important because access to finance alone may not guarantee enterprise growth if entrepreneurs lack the digital and managerial capabilities needed to effectively deploy business resources.

The study will contribute to the academic literature on digital entrepreneurship, youth entrepreneurship and business growth in Nigeria. It will provide empirical evidence from a major commercial environment and may assist researchers in understanding how specific digital competencies influence the performance and development of youth-owned businesses.

Finally, the study will be useful to future researchers who may wish to examine digital entrepreneurship in other markets, states or categories of businesses. The study may provide a foundation for comparative research involving different age groups, industries, geographical locations and dimensions of digital entrepreneurship.

1.7 Scope of the Study

The study focuses on the effect of digital entrepreneurship skills on the growth of youth-owned businesses among selected youth entrepreneurs in Aba Market.

The geographical scope is limited to selected youth-owned businesses operating within Aba Market, Aba, Abia State. The respondents will comprise young entrepreneurs who own or manage businesses within the study area.

The content scope of the study covers digital entrepreneurship skills as the independent variable and growth of youth-owned businesses as the dependent variable.

Digital entrepreneurship skills will be examined through four dimensions:

• Digital marketing skills;
• E-commerce skills;
• Digital financial literacy; and
• Digital business-management skills.

The growth of youth-owned businesses will be assessed using indicators such as:

• sales growth;
• customer-base growth;
• profitability;
• market expansion;
• product/service expansion; and
• general improvement in business operations.

The study does not cover every factor that may influence business growth. Factors such as access to finance, taxation, electricity supply, government policy, business location, competition, entrepreneurial orientation and general managerial competence may affect business growth but are outside the main variables examined in this study.

1.8 Operational Definition of Terms

Digital Entrepreneurship: The process of identifying, developing and exploiting business opportunities through the use of digital technologies, platforms and resources.

Digital Entrepreneurship Skills: The knowledge and practical abilities that enable an entrepreneur to use digital technologies effectively to establish, operate, market, manage and grow a business.

Digital Marketing Skills: The ability to use digital platforms and technologies to promote products, communicate with customers, build brand awareness and generate sales.

E-Commerce Skills: The ability to use electronic platforms to display products, receive orders, process transactions, communicate with customers and conduct business activities online.

Digital Financial Literacy: The knowledge and ability to use digital financial services, electronic payment systems and digital financial-management tools effectively and safely for business purposes.

Digital Business-Management Skills: The ability to use digital tools for business activities such as record keeping, inventory management, customer management, communication, data analysis and decision-making.

Youth Entrepreneur: A young person who owns, controls or manages a business enterprise and assumes responsibility for its decisions, risks and outcomes.

Youth-Owned Business: A business that is owned, controlled or substantially managed by one or more young entrepreneurs.

Business Growth: An increase or improvement in the size, performance, profitability, customer base, market reach or operational activities of a business over time.

Market Reach: The geographical and customer coverage through which a business is able to sell its products or services.

Social Media Marketing: The use of social networking and digital communication platforms to promote products, interact with customers, develop relationships and generate business opportunities.

E-Commerce: The buying, selling, marketing or exchange of goods and services through electronic or digital platforms.

Digital Financial Services: Financial services accessed or delivered through digital technologies, including electronic transfers, mobile payments, online banking and electronic payment platforms.

1.9 Organisation of the Study

The study will be organised into five chapters. Chapter One presents the introduction, background to the study, statement of the problem, objectives of the study, research questions, research hypothesis, significance of the study, scope of the study and operational definition of terms. Chapter Two will review relevant conceptual, theoretical and empirical literature on digital entrepreneurship skills and the growth of youth-owned businesses. Chapter Three will present the research methodology, including research design, population of the study, sample size, sampling technique, research instrument, validity and reliability of the instrument, method of data collection and method of data analysis. Chapter Four will present, analyse and interpret the data collected from respondents. Chapter Five will present the summary of findings, conclusion, recommendations and suggestions for further studies.

Project – Effect of Digital Entrepreneurship Skills on the Growth of Youth-Owned Businesses. A Study of Selected Youth Entrepreneurs in Aba Market