The effect of ICT adoption and performance of small medium enterprises: a case study of in Pallisa town council.

Abstract

The study was carried out with the purpose of examining the effect of ICT adoption on performance of small and medium enterprises in Pallisa Town Council. The objectives for the study were; to assess the impact of software application on the performance of Small medium enterprises in Pallisa Town Council, to investigate the effect of Record keeping and SMEs performance in Pallisa Town Council and to analyze the effect systems integration on the performance of small medium enterprises in Pallisa Town Council. The researcher applied a quantitative technique in designing the research. A total of 60 respondents participated in the study and were selected using stratified random sampling method. The data was collected using close ended questionnaires and statistical package for social sciences was used for analyzing data from which frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study findings depict that software application positively impacts on performance and that in order to improve on performance; SMEs need to increase e-commerce, coordination function and doing their tasks using software applications. The findings also demonstrated that record keeping has a positive significant effect on performance. Where concentration on record keeping of small and medium scale businesses, maintains proper records facilitating efficient and timely decision-making and maintenance of accounting records which plays an important role in the performance of small businesses. The researcher therefore concludes that in order to improve performance, SMEs need to propagate reinforce, supplement and extend skills as these will allow them to identify areas for improvement and make necessary adjustments to the integration strategy.