E-COMMERCE ADOPTION AND ITS EFFECT ON SMALL AND MEDIUM ENTERPRISES IN NOTHERN NIGERIA

Abstract

This study focuses on E-commerce adoption and its effects on Small and Medium Enterprises (SMEs) in Northern Nigeria. The objective of the study is to identify the extent to which e-commerce has been adopted by SMEs in Northern Nigeria, identify the various challenges affecting the adoption of e-commerce among SMEs in Northern Nigeria and identify strategies that can facilitate the successful adoption of e-commerce among SMEs in Northern Nigeria. Using data from 400 SMEs, the research employs descriptive statistics and multivariate regression analysis. The findings of the study reveal that 50% of SMEs have fully adopted E-commerce, 30% have partially adopted, and 20% have not adopted E-commerce at all. Key challenges include lack of internet infrastructure (mean score = 3.88), high implementation costs (mean score = 3.80), lack of technical skills (mean score = 3.45), security concerns (mean score = 3.58), resistance to change (mean score = 3.30), and regulatory issues (mean score = 3.18). The study findings identify critical strategies such as improving internet infrastructure, reducing implementation costs, offering training and skill development, enhancing security measures, promoting awareness of E-commerce benefits, providing financial incentives, and simplifying regulatory requirements. The regression analysis for the hypothesis indicates that E-commerce adoption significantly enhances Sales Growth, Market Reach, Operational Efficiency, and Profitability, while Customer Satisfaction shows no significant impact. The study recommended that governmental and non-governmental organizations should provide training and skill development, strengthen security protocols, upgrade internet infrastructure, increase benefit awareness, offer financial incentives, and simplify regulatory requirements in order to encourage SMEs to adopt e-commerce. Also, in order to improve their overall business performance, SMEs should give priority to tactics that increase sales growth, penetrate new markets, and improve operational efficiency. This research contributes to the understanding of digital transformation in SMEs and provides actionable insights for policymakers, industry stakeholders, and business owners.