E-commerce Adoption by Formal Micro and Small Enterprises in Nairobi, Kenya
Abstract
The objective of the study was to identify the factors that influence the adoption and utilization
of e-commerce by the micro and small sized enterprises (MSEs) operating within the NCBD.
The research design adopted was a cross sectional survey.
The study population comprised of all MSEs with formal premises registered with the Nairobi
City Council operating within the NCBD. The main source of data was primary data. The
primary data collection instrument was a structured questionnaire with both open and close
ended questions developed by the researcher. The structured questionnaire was administered
through personal interviews with the business owners or the managers of the businesses.
The data collected was analyzed using the factor analysis statistical method to determine the
combination of factors that were most appealing to MSE managers or owners. Descriptive
statistics method was also used. This involved the use of frequency tables, percentages, rank
ordering and mean scores. Frequency tables were used for arraying data obtained to facilitate
working out percentages in order to address the objective of the study.
The results show that MSEs in Kenya are sole proprietorships and are mostly operated by young
people who have at least a secondary level of education and in most cases college education. The
findings further indicate that of the four factors considered skills and IT knowledge levels of
business owners and staff accounted for the greater adoption of e-commerce by formal MSEs in
Nairobi Kenya. Arising from the study findings the researcher therefore recommends that the
government should enact legislation to regulate the ICT industry in Kenya with a few of
reducing the cost of ICT applications. The management of formal MSEs should also ensure that
their employees are trained on ICT aspects.
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of NairobiPublisher
University of Nairobi School of Business