Effect of technology adoption on performance of youth led micro and Small enterprises (mses)

Abstract

Despite the great role that micro and small enterprise (MSE) sector play in wealth generation, employment creation and poverty reduction and the Government’s effort to promote the sector, the MSE operators seem to be lagging behind in technology adoption. This study aimed at finding out the effect of technology adoption on youth led MSE performance. A descriptive research design was used to carry out the study. Stratified random sampling technique was employed to select a sample of 119 out of the target population of 396. A questionnaire was the main instrument for collecting both quantitative and qualitative data. Quantitative data was analyzed using SPSS software. From the study, it was revealed that those enterprises which used the four forms of technology adoption experienced improved enterprise performance. However the study found that use of appropriate technology was found not doing much to enhance youth led MSE performance due to insufficient finances and irrelevant skills; that quality improvement techniques are not being made use of due to lack of relevant skills and inefficient machines; that conformance to legal requirements is a major handicap to youth led MSEs due to too high license fee; that financial resource management has weak effect on MSEs due to insufficient funds and that ability to secure appropriate business location is hindered by too high rents charged. The study is important as it will give direction on areas to prioritize the expenditure of the donors and policy makers so as to effectively promote youth led MSE’s development.