E-Commerce Adoption and Growth of SMEs in Uganda

Wanzu Ibrahim,Peter Turyakira,Proscovia M Katumba

doi:10.5539/ijbm.v14n1p46

Wanzu Ibrahim, Peter Turyakira + Show 1 more

Open Access

https://doi.org/10.5539/ijbm.v14n1p46

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Abstract

Information and communication technologies (ICT), particularly e-Commerce, are considered very important to the growth and competitiveness of businesses globally. SMEs too need to embrace innovative e-commerce strategies if they are to stay competitive, profitable and successful in local and global markets. Increased use of the Internet offers potential benefits to SMEs, such as cost reduction, improved operational efficiencies, access to new customers and enhanced business growth. However, SMEs, particularly in Uganda, have generally been slow in adopting e-commerce. Empirical research into the challenges SMEs in Uganda face in adopting electronic commerce is also limited. This study sought to explore the factors affecting e-commerce adoption among SMEs; and to establish the influence of e-commerce adoption on SMEs&rsquo; growth in Uganda. A structured, self-administered questionnaire was used to collect data from 172 owners/managers of SMEs in the Kampala District in Uganda. The empirical results of this study indicate that e-commerce adoption significantly influence the growth of SMEs.

Highlights

Introduction and Problem StatementThe socio-economic importance of small and medium enterprises (SMEs) is certainly unquestionable
Results further indicated that aspects with the least felt presence of adoption were; firms handling orders online (Mean=2.89, SD=1.404); SMEs having a developed Information and communication technologies (ICT) infrastructure (Mean=2.84, SD=1.494); and organizations having a provision for online customer registration and log in (Mean=2.79, SD=1.344)
The findings clearly indicate that the adoption of e-commerce is affected by internal and external factors, some of which are macro and others micro, the factors may at times be beyond the internal capacity of an organization to control

Summary

Introduction

Introduction and Problem StatementThe socio-economic importance of small and medium enterprises (SMEs) is certainly unquestionable. In Uganda, it is estimated that SMEs employ over 80% of the population (Nangoli, Turinawe, Kituyi, Kusemererwa & Jaaza et al, 2013), constitute up to 90 percent of the private sector, contribute over 70% to total gross domestic product In spite of their contribution to economic growth, the survival rate of SMEs in Uganda remains very low Poor saving culture, lack of entrepreneurial skills and their inability to exploit new opportunities for growth have been underscored as some of the main factors for the low survival rate (Nangoli et al, 2013)

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Conclusion