BENEFITS AND BARRIERS TO THE ADOPTION OF E-COMMERCE BY SMES IN UGANDA

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Published: 2020-05-22

Page: 40-53


PROSCOVIA MAYANJA KATUMBA *

College of Business and Management Sciences, Makerere University, P.O. Box 7062, Kampala, Uganda.

BYAMBABAZI ROLAND RUKUNDO

College of Business and Management Sciences, Makerere University, P.O. Box 7062, Kampala, Uganda.

*Author to whom correspondence should be addressed.


Abstract

Electronic Commerce (E-Commerce) adoption is known to significantly influence the growth of Small and Medium-sized Enterprises (SMEs). It offers feasible and practical solutions for organizations to meet the challenges of a predominantly dynamic environment. However, available studies related to SMEs in developing countries, including Uganda, reveal that SMEs are slow in adopting e-commerce. Against that backdrop, this study set out with the following study aims: to identify the potential benefits of e-commerce to confectionery stores in Kampala City; to identify barriers to the adoption of e-commerce by confectionery stores in Kampala City; and to make recommendations on how best the barriers affecting the adoption of e-commerce by confectionery stores can be solved. The study employed a qualitative approach and a multiple case studies model, collecting empirical data through semi-structured interviews. Findings reveal that there are multiple potential benefits of e-commerce to SMEs in the Ugandan context, but these are eclipsed by a good number of mostly systemic impediments. By describing the situation surrounding the adoption of e-commerce in the case of confectionery stores in Kampala, this article might generate ideas necessary for the improvement of the e-trade environment not only in Uganda but also in some other developing countries.

Keywords: Electronic commerce, small and medium enterprises, benefits of e-commerce


How to Cite

KATUMBA, P. M., & RUKUNDO, B. R. (2020). BENEFITS AND BARRIERS TO THE ADOPTION OF E-COMMERCE BY SMES IN UGANDA. Journal of Global Economics, Management and Business Research, 12(2), 40–53. Retrieved from https://ikprress.org/index.php/JGEMBR/article/view/5077