IMPACT OF DIGITAL PROFICIENCY ON ECONOMIC GROWTH OF SMEs

Research Objectives

This research will be conducted in order to identify the impact of digital

proficiency as to the economic growth of SMEs in Koronadal, specifically on:

1. To identify the profile of selected respondent in terms of:

1.1 Number of Employees

1.2 Types of Business

1.3 Years of Existence

2. To know the impact on SMEs economic growth of Digital proficiency as to:

2.1 Content Creation

2.2 Strategic

2.3 Communication

2.4 Information

3. To determine what extent that may influence economic growth of SME's.

4. To know the significant relationship between digital proficiency and economic

growth of SME's.
 Chapter III

RESULTS

This chapter covers the presentation of data gathered from the questionnaires. It

covers the analysis, and interpretations of data from the responses of the respondents.

Those data were analyzed, discussed and interpreted according to the responses and

researcher’s basis of interpretations to give emphasis to the final result of the study.

The impact of digital proficiency as to the economic growth of SMEs were

evaluated and was addressed accordingly. Tables were given appropriate explanation

after analyzing and interpreting them.

The study also determines the significant relationship between the impact of

digital proficiency as to the economic growth of SMEs. In order to provide a clearer

understanding of the findings of this study, the analysis of the responses is presented

using mean and Pearson Product Moment Correlation Coefficient.

Table 1.1 Profile of the SMEs in terms of Number of Employees

Number of Employees Frequency Percentage

10 below

11 – 99 4 80%

100 – 199 1 20%

Total 5 100%

Eighty percent (80%) of the respondents were small businesses with between

eleven and ninety-nine employees. Only one respondent, or 20% of the total, falls into

the category of medium-sized businesses with 100–199 employees.

Table 1.2 Profile of the SMEs in terms of Type of Business

Type of Business Frequency Percentage

Merchandising 1 20%

Manufacturing

Services 4 80%

Total 5 100%

Eighty percent (80%) of the respondents were businesses that provided food

services. These businesses made up the majority of our sample. We only have one

business, a merchandising type establishment that employs 20% of the population.

Table 1.3 Profile of the SMEs in terms of Years of Existence

Years of Existence Frequency Percentage

1 – 5 years 3 60%

6 – 10 years

11 – 15 years 1 20%

16 years and above 1 20%

Total 5 100%

SMEs that had been in operation for 1-5 years made up 60% of the respondents.

There is only one business that has been in the business sector for approximately 11–

15 years, and there is only one business that has been in the business sector for

approximately 16 years, specifically 31 years, which accounts for 20% of the population.
Table 2.1 Impact on SMEs economic growth of Digital proficiency as to Content

Creation

Statement Mean Description

1. My business create digital content for Always

different purposes like business. (For Example:

Marketing, Presentation, Operation, etc.) 4.60

2. My business is using different platforms or Often

tools in creating digital content. (For example:

Canva, YouTube, WordPress, Excel, etc.) 4.40

3. My business keeps the content creation Often

skills and knowledge updated and relevant. 4.40

4. My business is evaluating the quality and Always

impact of our digital content. (For example:

feedback, analytics, self-reflection, etc.) 4.60

5. My business plan, design, and produce our Often

digital content. (For example: brainstorming,

researching, scripting, editing, etc.) 4.00

6. My business is confident in the ability to Often

create digital content that is effective,

engaging, and appropriate for your audience

and context. 4.20

Weighted mean 4.37 Often

Legend: 1.00 – 1.49 Never, 1.50 – 2.49 Rarely, 2.50 – 3.49 Sometimes, 3.50 –
4.49 Often, 4.50 – 5.00 Always
 This table shows when can digital proficiency has an impact on economic growth

of SMEs in terms of creating content about their business. When SMEs create digital

content for different purposes like business and evaluating the quality and impact of

their digital content, it has always an impact on their economic growth, which has a

mean of 4.60. When SMEs are using different platforms or tools in creating their digital

content, keeping their content creation skills and knowledge updated and relevant, and

plan, design, and produce their digital content, it can often impacted their economic

growth as a business and they are often confident in their ability on creating digital

content that is effective, engaging, and appropriate for their audience and context,

which it has garnered a mean between 3.50-4.49. In overall, when SMEs are creating

content about their business, it can often has an impact to their economic growth since

it garnered a weighted mean of 4.37 which falls in the category of often.

Table 2.2 Impact on SMEs economic growth of Digital proficiency as to Strategic

Statement Mean Description

1. My business is using digital technologies Always

(such as computers, smartphones, tablets,

etc.) in planning and organizing our tasks or

projects. 4.60

2. My business is using digital tools or Always

platforms in managing our time, resources, and

progress. (For example: calendars, reminders,

to-do lists, project management software, etc.) 4.80

 3. My business is using digital technologies in Often

innovating or creating new solutions or

products that meet our needs or the needs of

others. (For example: design, coding,

prototyping, etc.) 4.00

4. My business is using digital technologies in Often

communicating and collaborating with others in

achieving our goals. (For example: email,

social media, instant messaging, video

conferencing, etc.) 4.40

5. My business is using digital technologies in Often

accessing and using information that is

relevant and reliable to our goals. (For

example: search engines, online databases,

websites, etc.) 4.00

6. My business is using digital technologies in Sometimes

enhancing our learning and professional

development. (For example: online courses,

webinars, podcasts, etc.) 3.00

Weighted mean 4.13 Often

Legend: 1.00 – 1.49 Never, 1.50 – 2.49 Rarely, 2.50 – 3.49 Sometimes, 3.50 –
4.49 Often, 4.50 – 5.00 Always

This table shows when can digital proficiency has an impact on economic growth

of SMEs in terms of creating strategies for their business. When SMEs are using digital
technologies (such as computers, smartphones, tablets, etc.) in planning and organizing

their tasks or projects and using digital tools or platforms in managing their time,

resources, and progress, it can always have an effect on their economic growth which it

has a mean of 4.60 and 4.80, respectively. When SMEs are using digital technologies in

innovating or creating new solutions or products that meet their needs or the needs of

others, are using digital technologies in communicating and collaborating with others in

achieving their goals and using digital technologies in accessing and using information

that is relevant and reliable to their goals, it often has an impact on their economic

growth, which it has a mean of 4.00, 4.40, 4.00 respectively. Lastly, when SMEs are

using digital technologies in enhancing their learning and professional development, it

sometimes impacted their economic growth, which it has a mean of 3.00. In summary,

when SMEs are creating strategies using their digital proficiency skill it can often

affected their economic growth which has a weighted mean of 4.13.

Table 2.3 Impact on SMEs economic growth of Digital proficiency as to

Information

Statement Mean Description

1. My business is using different sources or Always

platforms in finding information online. (For

example: search engines, social media, online

databases, websites, etc.) 4.60

2. My business is sharing information about 4.80 Always

our products online with others. (For example:

 email, social media, blogs, podcasts, etc.)

3. My business is choosing the most relevant Often

and reliable information from the vast amount

of information available online. 4.40

4. My business protects our own intellectual Often

property and privacy rights when we are

creating or sharing information online. 4.40

5. My business deals with information Often

challenges or problems online. (For example:

information overload, misinformation,

disinformation, etc.) 4.00

6. My business is keeping our information skills Sometimes

and knowledge updated and relevant online. 3.00

Weighted mean 4.20 Often

Legend: 1.00 – 1.49 Never, 1.50 – 2.49 Rarely, 2.50 – 3.49 Sometimes, 3.50 –
4.49 Often, 4.50 – 5.00 Always

This table shows when can digital proficiency has an impact on economic growth

of SMEs in terms of creating information about their business. When SMEs are using

different sources or platforms in finding information online and sharing information about

their products online with others it can always has an effect on their economic growth,

which has a mean of 4.60 and 4.80, respectively. When SMEs are choosing the most

relevant and reliable information from the vast amount of information available online,

protects their own intellectual property and privacy rights when we are creating or

sharing information online and deals with information challenges or problems online it
can often has an impact on their economic growth which has a mean of 4.40, 4.40 and

4.00, respectively. Lastly, when SMEs are keeping their information skills and

knowledge updated and relevant online, it can sometimes has an impact in their

economic growth which has a mean of 3.00. In overall, when SMEs are creating

information about their business it can has an often impact on their economic growth

which has a weighted mean of 4.20.

Table 2.4 Impact on SMEs economic growth of Digital proficiency as to

Communication

Statement Mean Description

1. My business is using digital technologies Always

(such as computers, smartphones, tablets,

etc.) in communicating with others. 4.80

2. My business is using different platforms or Often

tools for online communication. (For example:

email, social media, instant messaging, video

conferencing, etc.) 4.40

3. My business is confident in our ability to Always

communicate effectively online. (For example:

expressing your ideas clearly, asking relevant

questions, maintaining respect, building trust,

etc.) 4.60

4. My business is dealing with online 4.20 Often

communication challenges or problems. (For

 example: misunderstanding, conflict,

cyberbullying, misinformation, etc.)

5. My business is maintaining our physical and Always

mental well-being when communicating online. 4.60

6. My business is keeping our online Always

communication skills updated and relevant. 4.60

Weighted mean 4.53 Always

Legend: 1.00 – 1.49 Never, 1.50 – 2.49 Rarely, 2.50 – 3.49 Sometimes, 3.50 –
4.49 Often, 4.50 – 5.00 Always

This table shows when can digital proficiency has an impact on economic growth

of SMEs in terms of creating information about their business. When SMEs using digital

technologies (such as computers, smartphones, tablets, etc.) in communicating with

others, in maintaining their physical and mental well-being when communicating online,

keeping their online communication skills updated and relevant and when they are

always confident in our ability to communicate effectively online, it can always has an

effect on their economic growth which has a mean of 4.80 and 4.60, respectively.

Additionally, when SMEs are using different platforms or tools for online communication

and dealing with online communication challenges or problems, it can often has an

impact on economic growth of their business which has a mean of 4.40, and 4.20,

respectively. Overall, when SMEs are communicating with their customers using digital

platforms with proficiency skill, it always has an impact on their economic growth which

has a weighted mean of 4.53.

Table 3. Extent that may influence economic growth of SME’s

 Statement Mean Description

1. Creating content using digital platforms with Often

proficiency affects my business economic

growth. 3.80

2. Developing strategies with proficiency on Often

digital platforms impacts the financial growth of

my business. 4.40

3. The economic growth of my business is Often

being affected by our ability to communicate

effectively with customers through digital

platforms. 4.20

4. My business can expand financially if I use Often

digital platforms to efficiently manage records

and other crucial business information. 4.40

5. An employee with digital competency can Often

contribute to the financial expansion of my

company. 4.40

6. My business can grow financially if we will Often

use digital devices and platforms to efficiently

record my accounting records and business

transactions. 4.20

Weighted mean 4.23 Often

Legend: 1.00 – 1.49 Never, 1.50 – 2.49 Rarely, 2.50 – 3.49 Sometimes, 3.50 –
4.49 Often, 4.50 – 5.00 Always
 This table shows in what extent digital proficiency can an impact on

economic growth of SMEs has. When SMEs are creating content, strategies,

information about their business and communicating effectively with their

customers, it often has an impact on their economic growth which has a weighted

mean of 4.23.

Table 4. Correlation
Variables r p-value Decision Interpretation
Impact of digital proficiency
as to the economic growth 0.70 0.000 Reject H O Significant/High
of SMEs Relationship
Legend:
Computed p-value > α =0.05 = No Significance
Computed p-value < α=0.05 = Significant

This part reveals the results on the test of a significant relationship between the

impact of digital proficiency as to the economic growth of SMEs. Table 4 shows the

details of the results, which used Pearson r in testing the relationship between the

variables. It reveals that there is significant relationship between the variables as

supported by p-value less than 0.05 level of significance, therefore, rejecting the null

hypothesis. The coefficient of correlation, r=0.70, between the impact of digital

proficiency as to the economic growth of SMEs indicates a high correlation (marked

relationship).

Chapter IV

DISCUSSION
 CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the conclusion and recommendations of the study. The

main focus of this study is to study the Impact of Digital Proficiency on Economic

Growth of SMEs here in Koronadal City. Specifically it tried to answer questions on:

Demographic profile of the respondents in terms of number of employees, type of

business, years of existence and the relationship between digital proficiency and

economic growth of SMEs in terms of content creation, strategic, information and

communication.

Conclusions

Statement Problem Number 1. To identify the profile of selected respondent in terms

of number of employees, types of business, years of existence.

The data implies that majority of the respondents has 10-99 number of

employees where in 80% of the total respondent thus belong to small enterprises and

20% is belong to medium enterprises with 100-199 employees according to the

Department of Trade and Industry (DTI). In terms of types of business 80% are

business that provide services and 20% is merchandising. As to years of existence 60%

of the total respondent are new stablish business with 1-5 years of operation and the

20% is over one decade of operation and the remaining 20% is over 3 decades of

operation. To sum it up, since the majority of respondents are small businesses, they

will have a good chance of growing economically when they use digital technology

proficiently, just like the medium-sized business that has been in business for nearly 31

years due to its digital proficiency.

Statement Problem Number 2. To know the impact on SMEs economic growth of

Digital proficiency as to Content Creation, Strategic, Communication, Information.

The result shows that most of the statements described as often and one of the

indicators described as always. Among these indicators, indicator (4) as to

communication got the highest mean of 4.53. This was followed by indicator (1) as to

content creation with the second highest mean of 4.37 and describe as often. On the

other hand, indicator (3) as to information got the second to the last mean of 4.20 which

describe as often. The lowest mean 4.13 was in the indicator (2) as to strategic. Overall,

the grand total was 4.31 described as often. In short, SMEs can always experience

economic growth if they are able to communicate with their customers effectively and

proficiently through digital means. Additionally, when SMEs develop content, strategies,

and information about their company, they frequently experience economic growth.

Statement Problem Number 3. To determine what extent that may influence economic

growth of SME's.

The result on the extent that may influence economic growth of SME's described

as often. All of these statements got the result of often. Overall, the weighted mean was

4.23 described as often. In summary, small and medium-sized enterprises can often

experience economic growth when they leverage their digital proficiency.

Statement Problem Number 4. To know the significant relationship between digital

proficiency and economic growth of SME's.

There are significant relationships between all the indicators of digital proficiency

on SMEs economic growth. As the indicators of digital proficiency supported by p-value

less than 0.05 level of significance, therefore, rejecting the null hypothesis. The

coefficient of correlation, r=0.70, between the impact of digital proficiency as to the

economic growth of SMEs indicates a high correlation (marked relationship). Finally, it

should be noted that the economic expansion of SMEs in Koronadal City was

significantly influenced by digital proficiency. Businesses can therefore stay in the

business world longer and expand financially when they constantly use digital

proficiency skills.

Recommendation
Based on the conclusions drawn from the study, the following recommendations

are presented for consideration:

 In order to ensure that their business grows more profitably, small and medium-

sized enterprises (SMEs) must enhance and be confident in their ability on digital

proficiency and learn more techniques in creating their content about their

business. They must be more creative in making their content and they must

make a content that is one of the kind to attract the attention of the customers.

 SME's need to continue using and developing their strategic digital proficiency.

Businesses should make investments in research and development, talent

development, and digital technologies or tools to be used for their planning and

communication with their employees and customers. Businesses can work

together to accomplish goals by using online communication platforms for

communication. Innovative digital technologies, such online courses and

webinars, can improve professional development by facilitating communication,

 coordination, and cooperation inside teams, across departments, and with

external stakeholders.

 To protect innovation, reputation, and competitive advantage, businesses must

always select pertinent and trustworthy information from the internet while

developing strategies to expand more profitably. Encourage the organization to

have a learning and knowledge-sharing culture as well. SMEs need to become

more proficient in using digital tools and acquire new methods for creating

information about their company. For their employees' skills to improve, they

must continue to learn how to create information using digital platforms. Security

is a crucial consideration when it comes to maintaining company records. To

safeguard their documents and company data, their company needs a security

system. This includes not just a security password but a strong one that can keep

hackers from accessing their records.

 Communication is an important aspects when dealing with customers for every

business. For SMEs, they must always use or create more digital platforms or

tools like messenger, emails, social media accounts, etc. for online

communication with their customers to gain more trust from them and to address

their concerns regarding their products. Since communication has a vital role in

every transactions of the business, they need to be flexible and always has a

room in dealing with communication problem like misunderstanding in order for

their business run smoothly and exist longer in the business world.

 For small and medium-sized businesses (SMEs) to remain profitable and

experience economic growth, they must improve and expand their digital
proficiency in content creation, business strategy, and customer communication.

In order to immediately and simply record their daily transactions and increase

both customer base and revenue for their business, they also need to invest

more in digital media devices.