ICT and financial performance of small and medium scale enterprises: a case study of Kibuku district

Abstract

The study assessed the relationship between ICT and the financial performance of small and medium-sized enterprises located in Kibuku district. The study utilized a descriptive quantitative design to assess the relationship between ICT and the financial performance of SMEs. Descriptive research design is flexible and allows for a comprehensive exploration of the problem while capturing the characteristics of the target population. Quantitative methods were employed as they offer objectivity and facilitate the investigation of relationships between identified variables. 86 SMEs were considered for the study using nonprobability sampling (purposive). The analysis indicates a positive significant relationship between ICT and SME financial performance. Further research and analysis with a larger sample size or the inclusion of additional variables may be necessary to gain a more comprehensive understanding of the relationship between ICT and SME financial performance. Recommendations were made for SMEs managers to sensitize, educate and train their employees on ICT and the role of individual owner-manager in learning how to use and adopt ICT to enhance value and improve on financial performance.