Information and Communication Technology Adoption and the Growth of Small Medium Enterprises in Uganda: Empirical Evidence from Kampala City Council Authority

Abstract

The study used cross sectional study design and data were collected from business owners operating within the divisions of Kampala Capital City Authority. The study found out that the level of ICT adoption in Kampala Capital City Authority was moderate. ICT adoption was mostly marked with establishment of separate IT department, use of bulk SMS, printers, scanners and photocopiers. Specialized ICT skills, regular updates and outsourcing of ICT functions appeared to be a key challenge businesses face in ICT adoption. The findings however, indicated that growth of SMEs is a conglomeration, of which adoption of ICT is a microcosm. The study recommends that Government of Uganda through Ministry of Science Technology and Innovation and Ministry of Finance Planning and Economic Development should consider promoting ICT business growth by sponsoring business software development, and distributing the same at subsidized costs. Training institutions should strengthen the ICT training programs by aligning them to the required job demands as dictated in the field of business. Government should also promote the application and adoption of ICT e-business by slashing the exorbitant taxes charged on the use of these products. Government should stimulate entrepreneurship development training to curb the shortfalls in staff competence, individual job creation and profitability skills.