E-COMMERCE ADOPTION AND PERFORMANCE OF SMALL AND MEDIUM SIZED ENTERPRISES IN UGANDA: A CASE STUDY OF NATETE TRADING CENTRE, LUBAGA DIVISION

Abstract

The purpose of the study was to assess the relationship between e-commerce adoption and performance of 
Small and Medium sized enterprises in Uganda, a case study of Natete Trading Centre. The study was based 
on three objectives that is, to determine the relationship between mobile money payment and the 
performance of SMEs, to examine the relationship between e-tax payment and the performance of SMEs 
and to findout the relationship between e-shopping and performance of SMEs in Uganda, a case study of 
Natete Trading Centre. The study adopted descriptive correlational design and employed both qualitative 
and quantitative methods of data collection. Both questionnaire and interviewing were the main methods of 
data collection. Simple random and purposive sampling techniques were used to select respondents. 
Correlation results revealed a very strong significant positive relationship between E-commerce adoption 
and performance of SMEs (r=.967, sig. 0.000), implying that e-commerce will have an impact on 
performance of SMEs. It’s significant because the significant level is above the stated significant of 0.000 
hence making e-commerce a great attribute towards Performance of SMEs. The study recommends that 
SMEs should put emphasis on mobile payments in order to make business to business transfer when making 
purchases from suppliers, customer to the business transfers when customers buy goods from the business 
and for debt collection for credit sales so as to ensure improved performance and growth. More still, the tax 
authority like Uganda Revenue Authority (URA) must to implement more programs aimed at raising 
taxpayer awareness of electronic taxes by supplying them with comprehensive information about the 
technology, along with details on its advantages and disadvantages. It is suggested that the practice of online 
buying platforms is on the rise for business owners. Hence, suggesting a market niche where in-store and 
online options coexist without appreciable differences in preferences.