The Contribution of Information Communication Technology on The Performance of Small Business in Tanzania

Abstract

Numerous academics in the field of entrepreneurship have demonstrated that Information and Communication Technology (ICT) can unquestionably have a more significant impact on the success of small businesses. To fully understand the complex link between these two variables, more research is still needed. With a focus on Dodoma City specifically, this study aimed to determine the role that ICT plays in the performance of small businesses in Tanzania. The main goals of the study were to determine the degree to which ICT adoption has impacted small business performance, what kind of ICT is most appropriate and accessible to small businesses, and finally, what ICT infrastructure limitations are common among Tanzanian small businesses. Small businesses in the relevant district that employ one or more categories of ICT equipment and applications were the study's target audience of which four Key Informants and a fair representation of 97% of the respondents took part in the study. The results of the survey indicated that the most widely used devices in the study region are the computer, mobile phone, and CCTV camera. The most widely used apps in the study area are the internet, websites, Microsoft Office programs, and statistical software. The majority of respondents believed that ICT had a stronger impact on their organizations' performance, indicating the strong correlation already identified between ICT usage and small business performance. Nevertheless, several limitations prevent the efficient application of ICT to many small enterprises.Financial limitations, ignorance of the newest gadgets and applications, inexperience with certain ICT technologies, high ICT operating expenses, and subpar network services from service providers are some of the most frequently cited barriers.Since small businesses in the study area were found to be lagging behind in the use of modern technologies, these findings are very concerning to activists who specialize in the development of small businesses. As a result, both public and private support is required to take corrective measures in order to help small businesses acquire the maximum benefits from integrating ICT in their businesses.