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

Abstract

This dissertation investigated the contribution of Information Communication Technology (ICTs) in the growth of SMEs in Tanzanian context a case study of Ngorongoro District Council. Although more than 75% of Tanzanian poses mobile phones there is still lack of studies on mobile phones adoption, usage and impact within SMEs in Tanzania. Studies indicate that Most Tanzanian uses ICTs in social media mostly for non-business matters, Effective use of ICTs by SMEs possesses potential to help them to advance in their businesses. The objectives of the study were to explore type of Information and Communication Technologies (ICTs) suitable and available to the most SMEs in Tanzania; the extent ICTs usage enhances SMEs growth in Tanzanian business context and identify barriers to ICT adoption as a growth tool by SMEs. The study adopted innovation diffusion theory. Cross section research designed was used in collecting data based on both qualitative and quantitative research approach where by a well-structured questionnaire and checklist was used collecting data from 130 respondents randomly selected, data analysed using Statistical Package for Social Sciences (SPSS) version 20.0. Findings indicate that in the study areas the population is not aware of the available ICTs that can be used by SMEs to advance in their business. Although about 74.3% of SMEs posse's mobile phones, most of them they use it for WhatsApp in issue not related business growth and management. The district lacks strong internet with no internet café for public use. SMEs they have a fear in the safety of their business using ICTs but they can enhance their business when the available ICTs are effectively utilized. Other barriers to ICT adoption to SMEs, is lack of appropriate education, knowledge and skills on the part of managers, employees and customers in business sector in the Ngorongoro. The study recommends that government and private sector still have to modernize the availability and accessibility of reliable, affordable and strong source of internet for ICTs necessary for the emerging unfair globalization. Mobile phones manufacturers not only ought to ensure availability of affordable cell phones by the rural poorbut alsothe mobile phones shouldbewaterproof andnot easily broken.