Afretec backs UNILAG on MSMEs digital growth

The University of Lagos has been awarded a seed grant by the African Engineering and Technology Network to research digital growth in youth-led micro, small, and medium enterprises across Africa.

The study, which will involve collaboration with the University of Nairobi, Kenya and the University of the Witwatersrand, South Africa, was announced in a statement obtained by The PUNCH on Saturday.

The research lead from UNILAG’s Faculty of Management Sciences, Dr. Obigbemi Imoleayo, explained that the one-year project will focus on evaluating digital transformation and maturity within MSMEs across Sub-Saharan Africa.

The research will cover various sectors, including health, energy, environment, and sustainability.

Dr. Imoleayo noted that the study aims to identify the key challenges and opportunities that could accelerate digital adoption in Africa’s MSME ecosystem.

She, however, lamented that these enterprises face high failure rates, often lacking the digital maturity needed to compete and grow sustainably.

Recognising the transformative potential of digital technology, particularly for youth-led businesses, she said the study aims to assess the state of digital transformation in various sectors.

It will also create a clear understanding of MSMEs’ digital capacities and offer solutions to boost resilience and sustainability, she added.

According to her, the structured research will proceed through distinct phases over the coming year. In the initial months, the research team will set objectives, refine methodologies, and build partnerships.

“A comprehensive literature review and framework development are planned for months three and four, setting the groundwork for a digital maturity assessment survey and qualitative interviews,” she said.

“These surveys and interviews will gauge digital capabilities and capture the lived experiences of MSMEs in adapting to new technologies. In the final stages, findings will be analysed and disseminated through workshops, conferences, and academic publications, ultimately informing policies that will accelerate MSMEs’ digital transformation,” she explained.

Dr. Imoleayo reiterated that despite the advantages digital transformation offers, MSMEs often struggle to adopt necessary technologies due to resource constraints, including limited budgets, knowledge gaps, and time constraints.

“This research will investigate several key questions, including the current level of digital maturity in MSMEs across sectors; the challenges and opportunities MSMEs encounter when adopting digital technologies; the impact of digital maturity on MSMEs’ business performance, innovation, and sustainability; and strategies and interventions to enhance MSMEs’ digital maturity,” she said.

“Outcomes of the study will be shared with industry stakeholders, policymakers, and academia, aiming to foster a supportive environment for African MSMEs in the digital era. As part of this commitment, findings will also appear in policy briefs, book chapters, and journal articles,” she stated.