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Saudi Journal of Business and Management Studies (SJBMS)
Volume-11 | Issue-05 | 181-187
Original Research Article
Digital Entrepreneurship in the Informal Economy Adoption, Modernization, and Profitability among Open Market Traders in Warri Metropolis, Nigeria
Justice O. Okei, Glory Ivie, Silver Ogboru
Published : May 21, 2026
DOI : https://doi.org/10.36348/sjbms.2026.v11i05.004
Abstract
This study explored the digital entrepreneurship in the informal economy: adoption, monetization, and profitability among open market traders in Warri Metropolis, Nigeria. The objectives of the study focused on exploring the adoption, modernization, profitability, barriers, and drivers of digital platforms use among open market traders in Warri, Nigeria. Employing a mixed methods design, survey data (200) were complemented with qualitative interviews to capture both statistical trends and lived experiences. Results show moderate adoption (mean – 3.05), with traders relying more on informal platforms such as WhatsApp and Facebook than on formal e-commerce system. Monetization remains limited (mean = 2.98), with indirect benefits, such as; boosting physical purchases than online income. Profitability perceptions are moderate (mean = 3,25), with digital marketing expanding customer reach but traditional walk-in customers remaining dominant, Barriers are significant (mean = 3.48), particularly unstable electricity and poor internet connectivity, while drivers such as education and social influence (mean = 3.23) encourage adoption. Correlation analysis revealed a positive and significant relationship between adoption and profitability (r = 0.414, p < 0.01), while regression analysis confirmed monetization as the strongest predictor of profitability (β = 3.636, p < 0.001). Qualitative findings reinforced these results, highlight infrastructural frustrations, trust concerns in online payments, and the role of younger relatives in facilitating digital engagement. Conclusively, this study demonstrate that adoption alone does not guarantee profitability; rather, effective monetization strategies are critical. The study then recommends that the constraints be addressed in order to achieve sustainable profitability.
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