ADOPTION AND USE OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) BY SMALL ENTERPRISES IN THIKA TOWN, KENYA

Abstract

Information and communications technology  (ICT) has  assumed a critical role  in facilitating socio-economic development in many countries. The contribution of ICT to enterprise development has been recognized and many countries including Kenya have made  deliberate  efforts in integrating ICT into  small enterprise  (SE) development agenda. However, the adoption and use of ICT by small enterprises has been below expectations. The study sought to determine factors affecting the adoption and use of ICT by (SEs) Kenya. The study was conducted through a survey questionnaire covering a stratified sample of 78 respondents drawn from 390 SEs in  Thika.   Both qualitative and quantitative methods were  used to analyze data. Chi-square tests  were conducted to establish the relationship between variables.  Results indicated that most  SEs  use basic communication tools such as mobile (75%), internet (34.6%). Adoption and use of ICT tools has not been well embraced  by  SEs. Most  SEs  are characterized by weak financial capacity and hand-to-mouth financial existence.  The chi-square value was 7.890 with  0.049  significance level, indicating a statistically significant relationship between financial capacity and ICT adoption and use. SE operators perceive the cost of ICT to be very high, with a negative effect on adoption and use. Communication infrastructure was also found to have a significant effect on adoption and use, having a chi-square value was 21.65 with a 0.001 significance level. The level of knowledge and education also has significant effect on adoption and use having a chi-square test value of 16.063 and a 0.013  significance level. The study concludes that adoption and use of ICT has not been well embraced by SEs. All the variables under study have a statistically significant effect on ICT adoption and use. To help improve ICT adoption and use by  SEs  in Kenya, the  Government  should  develop  an appropriate programme to encourage ICT adoption and use by SEs, eliminate all taxes on ICT, establish a special fund to support ICT adoption;  support training programmes to develop the capacity of SEs to embrace  ICT;  invest in appropriate communication infrastructure for SEs, and  there  should be deliberate efforts by Government to encourage SEs to invest in basic ICT tools to help improve their business and make them more competitive.