Determinants of WhatsApp, Facebook and Tiktok utilization for business purposes among SME's in Kikuubo, Kampala

Abstract

This study investigates the determinants of WhatsApp, Facebook, and TikTok utilization for business purposes among small and medium enterprises (SMEs) in Uganda. While social media platforms have become ubiquitous tools for global connectivity, Ugandan SMEs—which provide over 80% of private sector employment and contribute approximately 20% to the Gross Domestic Product (GDP)—face significant challenges in optimizing these tools for commercial growth. The research specifically focuses on Kikuubo traders within the Kampala Central Business District (CBD), an area characterized by high commercial density and smartphone penetration exceeding 75%. The study is guided by four primary objectives: to examine current utilization levels of the specified platforms; to determine the relationship between company size and utilization; to assess the role of internet access and digital awareness; and to evaluate the influence of marketing budgets and perceived benefits on usage levels. Theoretically, the research is anchored in the Technology Acceptance Model (TAM), which posits that "perceived usefulness" and "perceived ease of use" are the core drivers of technology adoption. A cross-sectional research design was employed to collect data at a single point in time. Using the Yamane formula, a sample size of 113 participants was determined from the target population of MSME owners in Kikuubo. Data collection was conducted through self-administered questionnaires featuring 5-point Likert scales to measure demographics, social media habits, and TAM constructs. Analysis included univariate (frequencies and central tendency), bivariate (chi square tests), and multivariate (linear regression) methods to identify significant predictors of platform utilization. Preliminary findings indicate that while platforms like WhatsApp and Facebook are widely used for interpersonal networking, strategic commercial application remains nascent due to high data costs, limited digital literacy, and a lack of customized training. The study concludes that addressing these socio-economic barriers through appropriate training frameworks and improved infrastructure is essential for maximizing the digital competitiveness of Uganda's entrepreneurial sector.