COST-BENEFIT ANALYSIS OF SMALL AND MEDIUM ENTERPRISES ADOPTING E-COMMERCE IN BUNGOMA,KENYA

Economics and Management

The study seeks the identification of factors that influence the cost-benefit analysis of adopting E-Commerce in Bungoma County, Kenya. The paper applies a cross-sectional survey as the research design to provide the best approach to the inquest. The target population are Small and medium enterprises with definite formal premises or structures at Bungoma County and comply with the Kenya Revenue Authority Regulations. The restriction serves as a basis to filter otherwise unstable and unrecognized ventures. The main source of data for the study was primary data collected through a structural questionnaire administered online. The questionnaire collects data from business Small and Medium Enterprise owners and managers allowing for further statistical analysis. The factor analysis statistical method was used in determining necessary combination of factors that were most attractive to Small and medium enterprises managers or owners. Descriptive and inferential statistics method was also used involving frequency tables, ratio, grouping, and mean score frequency tables that were used for formation of data obtained to ease working out percentages to label the intention of the study. The results show that Small and Medium Enterprises in Bungoma County Kenya are sole proprietorships and are mostly owned by the youth who have at least a secondary level of education. The uncovering further indicate that of the four factors accounted, skills and IT grasp levels of business owners, and staff accounted for the greater adoption of e-commerce by formal Small and medium enterprises in Bungoma County. A rising on the study findings, the researcher suggests that the government validate legislation to control the ICT industry in Kenya to minimize expenditure of ICT applications. The control of formal SMEs should also guarantee that their employees are well equipped on ICT details.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.