The effect of Technology Innovation on Small and Medium Enterprises Perfomance:

Abstract

Technology innovation has triggered novel changes in Small and Medium Enterprises in both the developed and developing countries. Technology and entrepreneurship are vital tools used for national economies towards 21st century requirement and growth. Technology innovation has triggered novel changes in Small and Medium Enterprises in both the developed and developing countries. Technology and entrepreneurship are vital tools used for national economies towards 21st century requirement and growth. Realizing this the researcher decided to asses the Effect of technology innovation on small and medium enterprises performance in Arusha district, specifically the study identified the kinds of technology that are highly influencing technology innovation, the impact of technology innovation towards small and medium enterprises and the relationship between technology innovation and small and medium enterprises performance The study used survey research and it involved 40 SMEs. The structured questionnaires were distributed by the researcher to respondents from each SME for data collection.convenience sampling technique was used to select the SMEs involved in this study, data collected from survey questionnaires were analyzed by using statistical package for social sciences (SPSS) From the study it was found that most of the respondents are exposed to marketing technology, technology has made it easy to operate the businesses hence there is an impact of technology innovation on small and medium enterprises,and technology innovation brought information accessibility on new market opportunities hence there is a positive relationship between technology innovation and small and medium enterprises The study concluded that there was a positive impact of technology innovation on small and medium enterprises since most respondents agreed that technology innovation has made it easy to operate in the business than before, therefore there is a relationship between technology innovation and small and medium enterprises performance since technology innovation brought information accessibility on new market opportunities for small and medium enterprises and recommended to the government to reduce the costs of technology innovation related equipment and service and training and seminars to those participating in SMEs by the policy makers and the SMEs owners to educate them selves on how to utilize technology innovation in their activities.