An empirical assessment of the determinants of digital technology adoption among selected entrepreneurs in Lagos and Ogun state, Nigeria

Recently, the adoption of digital technology (DT) among entrepreneurs especially in developing countries is gaining economic recognition gradually especially with the advent of the covid-19 pandemic that had put most businesses to halt. In view of this, this study examines the factors that determine the adoption of DT among some selected entrepreneurs in Lagos and Ogun State, Nigeria; two lists were generated from the study areas. The first list consists of the list of entrepreneurs that have adopted DT in the study areas, from this list, systematic sampling method was used to select 156 entrepreneurs that have adopted DT in their businesses (96 from Lagos and 60 from Ogun State). The second list consists of those that have not adopted DT in their businesses and from this list, 92 entrepreneurs (54 from Lagos State, and 38 from Ogun State) were systematically selected from the list. This gives a total sample of 248 entrepreneurs. The Probit regression model was used to analyse the data through Stata version 9. The results of the probit regression indicated that among the variables that were used to measure the factors that determine the adoption of DT among entrepreneurs in the study area (number of years in business, nature of the business, gender of business owner, pressure from customers, access to smart device, availability of constant electricity, IT skills of the entrepreneur, security and privacy), only number of years in business and gender of business owner have been found to be  insignificant determinants of DT adoption in the study areas. Thus, it is recommended that emphasis should be placed on those significant determinants by stakeholders and those in authorities so that more adoption of DT can be embraced by business holders in the study areas. Halt