ENTREPRENEURIAL ACCOUNTABILITY DEFICITS AND DIGITAL MECHANISMS: AN INVESTIGATION OF BUSINESS FAILURE AND SURVIVAL IN LAGOS STATE

Abstract

Entrepreneurial firms in emerging economies continue to experience high failure rates despite various policy interventions and support programmes. In Nigeria, particularly within Alaba International Market, Lagos State, many enterprises face accountability deficits such as weak financial reporting, poor governance, and limited transparency. This study examined the effect of entrepreneurial accountability deficits on entrepreneurial sustainability and the role of digital accountability mechanisms among 120 randomly selected entrepreneurs. Data were collected using structured questionnaires and analysed using descriptive statistics and multiple hierarchical regression. Findings revealed that weak financial record-keeping, poor internal controls, and low use of digital monitoring tools significantly reduce entrepreneurial sustainability, while fintech applications, blockchain systems, and AI-based tools significantly enhance transparency, accountability, and business resilience. The study further established a significant moderating effect of digital mechanisms on the relationship between accountability deficits and entrepreneurial sustainability (ΔR² = 0.054, p = 0.031), indicating a buffering effect. It concludes that digital accountability mechanisms improve both direct and conditional effects on sustainability and recommends stronger digital literacy and technology adoption support for SMEs.