THE IMPACT OF INFORMATION TECHNOLOGY ON PRODUCTIVITY OF SMALL AND MEDIUM ENTERPRISES IN UGANDA A CASE STUDY OF SAFE BODA KYEBANDO, UGANDA.

Abstract

The study aimed at the relationship existing between information technology and the efficiency of small and medium-sized businesses in Uganda, focusing on SafeBoda, a transport service company situated in Kyebando. The purpose of this study was to establish the rate of adoption of IT, difficulties faced by SMEs in embracing technology, and its impacts on productivity. The focus groups, interviews, and surveys undertaken with stakeholders and workers in SafeBoda reported that the set-up of IT greatly increased revenue growth, customer happiness, and operational efficiency. A well-planned, well-trained staff and strong leadership installation of IT had been important elements in a successful installation. On the other hand, the survey also noted that some of the barriers to full adoption include a lack of technical support and high costs for IT equipment. Based on such findings, recommendations were developed in response to the policy recommendation toward wide technology utilization in the Ugandan SME sector. These are geared at enabling SMEs better to embrace IT for the uplift productivity.