The role of information and communication technology on the performance of small businesses in Tanzania

Abstract

This study assessed the role of information communication technology on the performance of small businesses in Tanzania, using the selected small businesses in Arusha District Council. A total sample of 80 were used with the population consists of Arusha District Council business officials and small businesses. Both probability and non- probability sampling were used in this study. This study employed descriptive research design the data were collected from 80 respondents. Quantitative data were analyzed using descriptive statistics such as mean and standard deviation. Qualitative data were analyzed using content analysis. The respondents of the study believe to a good extent that use of information and communication technology has led to the growth and expansion of small business through provisioning of market opportunities, growth on the volume of sales and international marketing penetration. The study also shows that, the use of information and communication technology has led to better quality of products and services offered by small businesses as well as resulting to improved customer satisfaction. It is recommended that Provided that this study has concluded that the use if ICT has a significant positive impact on the performance of small businesses in Arusha District Council, the researcher suggests the following measures to be taken into consideration to help small business boost their performance through the use of information and communication technology around the area as well as for other local government authorities in Tanzania. It is recommended that, the government of Tanzania should consider mobilizing resources geared at creating awareness on and encouraging use of available information and communication technology tools at the disposal of the business entities to the maximum possible extent in order to enhance their performance. It should also provide incentives and support to encourage the upcoming of business support ventures that develop ICT based solutions for the small business operators such as software applications for business management at the affordable costs. All these will help improve the general understanding of the importance of ICT tools on business operations in the existing business competitive environment as well as ensuring that the adequate and suitable ICT tools are available at any point in time. They should progressively expand the knowledge base of the SMEs owners and operators by organizing more workshops and seminars to expose the business owners and operators on to the grounds of such technology.