The Use Of Information Communication Technology And Performance Of Micro And Small Enterprises In Kenya: A Case Study Of Selected Smes In Isiolo County

Abstract

Small and Medium Enterprises (SMES) are enterprises in both formal and Informal sectors employing 5-99 fulltime employees. SMEs cut across all sectors of the economy, providing a prolific source of employment, income, and government revenue and poverty reduction. In Kenya, the total capital employed in the sector is 28 billion. The sector provides goods and services; promotes competition, innovation and an enterprise culture and provides opportunities for the development of appropriate technological and managerial competencies. The general objective of this study was to assess the effects of ICT use in the performance of SMES in Isiolo County. The target population was registered SMES in Isiolo County. There are 895 registered SMES in Isiolo County. A sample of 269 was obtained according to Krejcie and Morgan (1970) table. The study relied on Primary data that was collected using Questionnaires. Descriptive statistics were used to analyze data. Measures of central tendency (mean, mode and median) were used to find how data tended to agree. Qualitative data was analyzed by use of and inferences made. Data presentation was by use of frequency tables, percentages, pie charts and bar graphs. The study showed that 28% of respondents used internet to research, 37.5% used mobile phones to transact business and 12.5% used modern technology to market their products and service while 12.5% did not use modern technology in their business. The inference is that a large majority of the respondents used modern technology. The study also established that use of ICT led to growth and expansion of business, that there was a positive correlation in the use of ICT in Marketing, stocking and human Resource Management in registered SMEs in Isiolo County, it further concluded that ICT led to increased market accessibility by facilitating communication with customers, competitive positioning enabled information acquisition and production of competitive products, generation of market information, reduction of logistical costs, facilitates access to global markets and research, networking, market transactions and identification. The study recommended the Government should encourage the adaption and use of ICT in SMEs, by having policies that are favorable for SMEs to take up use of ICT in the operations. SMEs owners should also seek ways that ICT can be relevant to them so that they can rip the benefits as the ability of Kenyan SMEs to survive the global environment is dependent on their capacity to leverage ICT as a resource and therefore benefit from the value of information.