Digital Human Capability and Youth SMEs Performance in Zanzibar

Purpose: The study examined how the digital human resource capability influenced the performance of youth SMEs in Zanzibar. The digital human resource sub-variables of training in the use of business digital tools, using digital platforms to attract customers, using digital tools to manage incentive payments, and using digital tools to evaluate and monitor business performance were analysed in this study to examine their influence on the performance of youth SMEs.Design/Methodology/Approach: The study applied the scientific positivist philosophy, the causal-based explanatory approach, the theory-based deductive approach, and a survey-guided approach. The random-based sampling procedure was used to select 400 SME owners in Zanzibar for the investigation. The structured constructed questionnaires collected the quantitative data. The descriptive and the ordinary least squares regression techniques analyzed data.Findings: Training in the use of business digital tools, using digital platforms to attract customers, using digital tools to manage incentive payments, and using digital tools to evaluate and monitor business performance positively and significantly influence the performance of youth SMEs in Zanzibar.Implications/Originality/Value: The presence of digital capabilities enables youth to operate SMEs more effectively than with manual methods. The study recommends that stakeholders facilitate the easy application of digital capabilities by many youths in Zanzibar. Policymakers should formulate a policy that enforces proper use of digital human resource capability tools and functions.