Factors influencing adoption of e-commerce among youth entrepreneurs in Nakuru town, Kenya

Abstract

In the past few years, significant growth has been realized in the internet based services in the pure internet business as well as the traditional enterprise, which are coming of age and advancing their online presence. This study seeks to investigate the factors influencing the adoption of e-commerce among the youth entrepreneurs in Nakuru Town. Variables under this study include the perceived benefits, internet service diffusion, access patterns and security and privacy concerns. The study was conceived due to the fact that there was lack of comprehension to the real issues that entail enhanced adoption of electronic commerce in developing nation like Kenya. There was great concern on the reluctance, and even the sluggish pace that the SMEs have adopted towards the adoption of electronic commerce platforms. This study incorporated the use of an exploratory research design. The target population comprised of young entrepreneurs in Nakuru town. The size sample was 198 entrepreneurs. Questionnaires and oral interviews were used to collect the data required. The collected data was coded and analyzed by use of descriptive statistics. The data was the analyzed using SPSS v.20. The findings established that, the number of small enterprises that had so far adopted some aspects of e-commerce was low. The findings further point to the strong influence of perceived benefits, internet diffusion and security/ privacy concerns on adoption of e-commerce. Internet access patterns influence but not as strongly as the other three attributes. It was evident that ‘cost consciousness’ remains a key determinant of decisions made. The entrepreneurs expressed their concerns on inherent risks that could lead to financial, technical or even time losses. It would be advisable for the Government, in partnership with the key players from the private sector, to undertake nationwide campaigns to further raise the levels of awareness, and possibly demystify the integration of e-commerce into normal business routines. Young entrepreneurs, and their staff, should also be encouraged to invest in their IT and other technical skills in order to fully take advantage of the ICTs. Similar studies should however be undertaken in less urban areas of Kenya so as to address this challenge of sluggish e-commerce adoption from both perspectives of an urban, and a rural population.