Chapter One — 1.1 Background to the Study

In recent years, Digital Skills Acquisition has emerged as a critical factor shaping business growth of informal sector businesses across organizations operating in and around Lagos State. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how digital skills acquisition relates to business growth of informal sector businesses has become an important area of both scholarly and practical concern.

Lagos State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While digital skills acquisition is widely discussed in policy and industry circles, empirical evidence on its actual effect on business growth of informal sector businesses within Lagos State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to digital skills acquisition are helping or hindering business growth of informal sector businesses — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Digital Skills Acquisition on business growth of informal sector businesses in Lagos State.
2. To assess the extent to which digital skills acquisition influences business growth of informal sector businesses within the study area.
3. To identify the challenges associated with digital skills acquisition in relation to business growth of informal sector businesses.
4. To recommend strategies for optimizing digital skills acquisition in order to improve business growth of informal sector businesses.

1.4 Research Questions

1. What is the effect of digital skills acquisition on business growth of informal sector businesses in Lagos State?
2. To what extent does digital skills acquisition influence business growth of informal sector businesses within the study area?
3. What challenges are associated with digital skills acquisition in relation to business growth of informal sector businesses?
4. What strategies can be adopted to optimize digital skills acquisition in order to improve business growth of informal sector businesses?

1.5 Significance of the Study

Beyond its academic contribution to the field of entrepreneurship, this study has practical value for management teams within Lagos State seeking to understand how digital skills acquisition translates into measurable outcomes around business growth of informal sector businesses. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this study confines itself to Lagos State, focusing specifically on how digital skills acquisition relates to business growth of informal sector businesses within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.