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.