The effect of ICT on financial performance of small enterprises :

Abstract

The study was carried out with the purpose of examining the effect of ICT on financial performance of small and medium enterprises in Pallisa district. The objectives for the study was; To determine the effect of systems integration on financial performance, to determine the effect of network capabilities on financial performance and to determine the effect of software application on financial performance. The researcher applied both qualitative and quantitative techniques in designing the research. A total of 30 respondents participated in the study and were selected using random sampling method. The data was collected using questionnaires and interviews and presented using tables, graphs and pie charts for easy analysis. The research findings revealed that how computerization has improved productivity in the business organization, safe storage of and quick access to business information which in turn quickens service delivery, and reducing the costs of doing business and also improves book keeping and accounting in the business. It was also found out that computerization increases transparency in handling funds in the organization. The study also highlighted some of the negative and positive effects that have been registered in financial management as a result of using computer technology in business organization which included; high cost of equipping and maintaining computerization, the effect of hackers into the organizations network causing a business risk, Data loss which is most common with computerization and the threat of ever developing computer viruses. It was however recommended that the business organization should put more emphasis on ensuring that data security is beefed in order to counter the threat of computer hackers and computer virus that most common with computerization. Also the study recommended training of employees in application of financial software’s and efficient use of these new packages in financial function of the business.