Effect of information and communication technology (ICT) on performance of micro, small and medium enterprises

Volume : 9, Issue : 9, September - 2022

Abstract : Information and Communications Technology plays a central role in the economic, social and political life of every nation. Hence, this study examines the role of information and communication technology on the performance of micro, small, and medium enterprises (MSMEs) in FCT, Abuja. Participants were MSMEs owners who have spent a minimum of three years in operation. A total of 367 questionnaires were personally distributed to the participants but only 325 were returned out of which 300 copies were considered valid for analysis. The statistical package for social sciences (SPSS) was employed for data analysis. The study found that there is a positive and significant relationship between e-business platforms and performance of MSMEs. These platforms help MSMEs to reach a wider coverage of customers in the comfort of their homes. Also, statistical result demonstrates a positive relationship between access to internet facilities and performance of MSMEs. It implies that through internet facilities, MSMEs can operate unhindered, even during pandemics. Similarly, results indicate that information and communication technology management enhances MSMEs performance. It implies that the more MSMEs embrace ICT, the better their performance would be. Also, statistical results demonstrate a positive and significant relationship between effective information system and MSMEs performance. The result suggests that effective information management enhances MSMEs performance. Therefore, this study recommends that Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Abuja Enterprises Agency should formulate workable strategies that will encourage MSMEs owners/managers to easily embrace ICT in their business operations to enhance MSMEs performance.

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