Investigating the factors that lead to online micro enterprises success using financial wellness as indicator: a case study in Egypt

Micro enterprises comprise 91% of all firms in Egypt, making them a dominant force in the country, particularly in the online sector. The COVID-19 pandemic has accelerated the shift from offline to online businesses, and the Egyptian government's vision by 2030 further supports the growth of these online micro enterprises. Recognizing the significance and effectiveness of micro businesses in the economy, this study aims to investigate the factors that contribute to the success of online micro enterprises, using financial wellness as an indicator. The findings aim to assist owners, managers, and decision-makers in understanding the key factors that drive business success and encourage the authorities to streamline and update regulations.
This study employed a quantitative approach, involving the distribution of 420 questionnaires to owners and managers of online micro enterprises. The analysis of the responses, conducted using SPSS, revealed a positive and significant impact of customer relationship and marketing activities on the financial wellness of online micro enterprises in Egypt. This highlights the importance of prioritizing and enhancing both customer relationship management and marketing activities in online micro businesses. It also enables owners and managers to recognize the crucial role of these activities in achieving business success. On the other hand, management expertise was found to have the least significant impact on the financial wellness of online micro enterprises.
Furthermore, the study found that the external regulatory environment significantly and positively influences the financial wellness of online micro enterprises in Egypt. These findings underscore the importance for authorities and decision-makers in Egypt to consider these results and work towards facilitating and updating regulations accordingly.