Assessment of the impact of ICT on small and medium scale enterprises in Uganda

Abstract

The role of ICT is not limited to few sectors but it can as well be felt in the business environment. Much as the firms employing ICT in their activities are few, it’s impact can be seen not only in Uganda but worldwide. The study sought to assess the impact of ICT on SMEs in Uganda using Uganda Enterprise Survey data which was conducted in Uganda between January 2013 and August 2013 as part of the Africa Enterprise Survey 2013 roll-out, an initiative of the World Bank. Data from 640 establishments was analyzed. Stratified random sampling was used to select the surveyed businesses. The study employed three levels of analysis, that’s univariate analysis, Bivariate analysis and Multivariate analysis. The findings from the study showed that a bigger percentage of firms in Uganda are located in Kampala (49.8%), and Lira had the least percentage of firms (4.99%). This difference is probably brought about by the advantages Kampala has over towns it being the Capital city with improved infrastructures, good security, availability of market attracts more investors compared towns like Lira. Furthermore, it was found out from the study that ICT has an impact on the firm’s business through widening of the market and attracting more customers. Thus, the study recommended that Firms should appreciate the impact of ICT in their daily running of the activities as this will help them to widen their markets and ease their transactions and that the Government of Uganda should provide a conducive investment environment in other towns Lira which had few firms as compared to Kampala. Such better facilities like improved transport means, improved security and better accommodation facilities should be extended to all parts of the country to encourage investment.