Information and Communication Technology Adoption and the Growth of Small Medium Enterprises in Uganda

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International Journal of Academic Research in Business and Social Sciences
The study used a cross-sectional study design and data were collected from business owners operating within the divisions of Kampala Capital City Authority. The study found that the level of ICT adoption in Kampala Capital City Authority was moderate. ICT adoption was mostly marked by the establishment of separate IT departments, and the use of bulk SMS, printers, scanners, and photocopiers. Specialized ICT skills, regular updates, and outsourcing of ICT functions appeared to be key challenges businesses face in ICT adoption. The findings, however, indicated that the growth of SMEs is a conglomeration, of which the adoption of ICT is a microcosm. The study recommends that the Government of Uganda through the Ministry of Science Technology and Innovation and Ministry of Finance Planning and Economic Development should consider promoting ICT business growth by sponsoring business software development and distributing the same at subsidized costs. Training institutions should strengthen the ICT training programs by aligning them to the required job demands as dictated in the field of business. Government should also promote the application and adoption of ICT e-business by slashing the exorbitant taxes charged on the use of these products. Government should stimulate entrepreneurship development training to curb the shortfalls in staff competence, individual job creation, and profitability skills.