ASSESSING THE IMPACT OF INFORMATION TECHNOLOGY ON THE DEVELOPMENT OF ENTREPRENEURSHIP AND SMALL BUSINESS IN TANZANIA A CASE OF UBUNGO MUNICIPAL COUNCIL DAR ES SALAAM.

Abstract

ABSTRACT The study aimed to assess the impact of information technology on the development of entrepreneurship and small businesses in Tanzania, in the case of the Ubungo Municipal Dar Es Salaam region. The research reviewed different studies related to the usage of ICT in the development of SME and entrepreneurs' businesses. A case study research design was employed in this study. The study used a sample of 100 respondents who fall under the SME and entrepreneur categories. Questionnaires, interviews, document reviews, and observation were data collection methods that the researcher was interested in using in the field. The researcher collected data, processed it, and analyzed it using statistical software (SPSS). Therefore, the study at hand determined the extent to which SMEs and entrepreneurs in Dar es Salaam use ICT in their daily operations. The study identified key attributes of SMEs and entrepreneurs. These attributes include years in business, sales, ICT use, and related performance measures (i.e., working capital, sales, and number of employees). The findings on ICT-related factors that influence the performance of SMEs and entrepreneurs found that computerized management systems have a positive influence on business sales; on the other hand, physical procurement influences negatively the sales of the business. The study further identified factors that have a significant influence on decreasing the number of workers in SMEs, and the results show that the introduction of ICT in the business management system has a positive influence on decreasing the number of workers. Lastly, a computerized management system and the use of both e-procurement and physical procurement in SMEs and entrepreneurs will increase the level of capital in the business.