The diffusion of information and communication technologies in the informal sector in Kenya
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Date
2012
Authors
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Publisher
University of Zululand
Abstract
The purpose of this study was to investigate the diffusion of information and
communication technologies (ICTs) in the informal sector in Kenya. The study
specifically focused on micro and small enterprises (MSEs) in two provinces in
Kenya, namely Nairobi Province and Central Province.
Information for the study was gathered through a literature review, a field survey,
and personal observation. Questionnaires were used to solicit information from
micro and small enterprise participants drawn from the two provinces. A
combination of purposive and probability random sampling was used to generate
the sample frames of MSE clusters and respondents respectively.
The sample of respondents was drawn from the central business district in the city
of Nairobi, two markets (Gikomba market and Kenyatta market) and a
horticultural products’ depot next to Jomo Kenyatta International Airport in
Nairobi Province. Two urban centers and two market centers were selected from
Central Province, namely Kiambu and Thika towns and Kabati and Makutano
market centers in Muranga District. Questionnaires were administered to a sample
of 390 MSE participants comprising of owner/managers and selected employees.
The overall results revealed that the majority of MSEs are small and are started
with little preparation and scarce capital. Only 5.6% of the enterprises had more
than five employees, while less than one percent had over ten employees. The
majority of the MSEs (over 90%) therefore fell in the micro-enterprises category.
The use of ICTs by the micro enterprises’ participants, with the exception of the
mobile phone and mobile money services, was found to be quite low. The use of the
mobile phone and mobile phone services was over 90%. . Access to formal business
information sources was also poor, and the majority of the MSE participants relied
mainly on their knowledge and experiences, customer reactions, telephone contacts,
and friends and relatives. Information was rarely sourced from government
agencies and other formal sources like the internet and mass media.
MSEs face many challenges in the use of ICTs because of the nature and small scale
of their businesses, which do not allow them to focus on much else beyond survival.
The MSEs lacked institutional capacity and support in the form of affordable
telecommunications facilities and ICTs as formal sources of information.
The mobile phone has been embraced by MSE workers, as an affordable and quick
way to communicate and perform business transactions. The mobile phone
technology has been quickly adopted and is heavily relied on in MSE operations.
The study recommends accelerated government involvement in order to address the
various challenges of providing the necessary infrastructure, developing and
implementing effective policies, improving the distribution of economic resources,
improving business premises and infrastructure that can reach the MSEs,
improving skills and training to enable the use of ICTs, raising awareness,
facilitating access to credit and finance, as well as improving information structures
for formal information sources and dissemination.
The study recommends more research to gain a deeper understanding of the context
and information needs of small business enterprises in order to be able to offer a
strategic framework for appropriate intervention in providing information for
MSEs.
Further research is also recommended in the area of mobile telephony, given its
rapid adoption and use in a short span of ten years, to bring out its full potential
and benefits.
Description
Thesis submitted in fulfilment of the requirements for the award of the Degree of Doctor of Philosophy in the Department of Library and Information Science at the University of Zululand, South Africa, 2012.
Keywords
Diffusion of information and communication technologies, Information and communication technologies -- informal sector -- Kenya., Micro and small enterprises -- Kenya