Artificial intelligence adoption and small business growth in sub-Saharan Africa

Edafe Bawa Dogo; Oluwajuwon Gabriel Ariyo; Temitayo Ayomide Joshua; Nneoma Benita Amos-Fidelis

Edafe Bawa Dogo Babcock University
Oluwajuwon Gabriel Ariyo Redeemers University, Ede, Nigeria
Temitayo Ayomide Joshua Redeemers University, Ede, Nigeria
Nneoma Benita Amos-Fidelis Valley View University, Oyibi, Ghana

Keywords: Artificial intelligence adoption, business growth, customer engagement, emerging economies, small businesses, sustainable development goals

Abstract

Small businesses are critical to the development of Sub-Saharan African emerging economies, as they contribute significantly to economic growth and advance sustainable development goals. However, these enterprises face persistent challenges to their growth potential, as evidenced by declining firm size, low market growth, and poor market position. Artificial intelligence (AI) adoption has emerged as a transformative force, offering innovative pathways to solving diverse business problems. It provides transformative solutions that enable small businesses to optimise operations, improve customer engagement, and enhance decision-making. Despite the current emphasis on AI Adoption, the impact of AI on business growth in developing economies remains underexplored. This study therefore examined the effect of adopting artificial intelligence on the growth of small businesses in Sub-Saharan Africa, with a focus on Nigeria, Ghana, and Sierra Leone. The survey research design was used. Primary data were collected from 404 owners/managers of small businesses in Sub-Saharan Africa. An adapted and validated research instrument was used to collect data. Data were analysed using descriptive and inferential statistics. Findings showed that the adoption of artificial intelligence had a positive and significant effect on the business growth dimensions of market growth (β = 0.384, t = 7.370), market position (β = 0.373, t = 6.453), and firm size (β = 0.345, t = 6.453). This study, therefore, revealed that AI adoption improved the growth of small businesses. The study recommends investing in and adopting artificial intelligence interventions, backed by supportive policies and capacity-building initiatives, to drive sustainable growth and bridge the digital divide in sub-Saharan Africa. The study suggests future research directions for expanding knowledge in this critical area.