TECHNOLOGY COST AND BUSINESS GROWTH AMONG WOMEN-OWNED SMALL AND MEDIUM ENTERPRISES IN KENYA

ABSTRACT Despite the increasing use of digital technologies by Women-owned Small and Medium Enterprises (WSMEs), technology costs may influence business growth among WSMEs. The purpose of this study was to assess the influence of technology cost on business growth among Women-owned Small and Medium Enterprises (WSMEs) in Kenya. The specific objective of the study was to assess the influence of acquisition costs, implementation costs, and training costs on business growth among Women-owned Small and Medium Enterprises (WSMEs) in Kenya. The research was theoretically anchored in the Technology Acceptance Model (TAM), and Schumpeter’s Theory of Entrepreneurship. Methodologically, the study adopted a post-positivist philosophical approach with an explanatory quantitative correlational research design. The target population comprised 10,505 registered WSMEs operating across three selected border points: Busia, Malaba, and Namanga. Using Yamane’s formula, a sample size of 385 WSMEs was determined through stratified simple random sampling. Primary data were collected using a structured questionnaire administered to business owners or managers. To ensure the robustness of the research instrument, pretesting was conducted using 39 WSME respondents, representing 10% of the sample. The reliability of the measurement scales was assessed using Cronbach’s Alpha (α), with a threshold of α ≥ 0.70 considered acceptable. Content and construct validity were assessed through expert review and pretesting. Diagnostic tests for normality, multicollinearity, heteroscedasticity, and linearity were conducted to ensure compliance with the assumptions of linear regression. Data were analysed using descriptive statistics and simple linear regression at a 0.05 level of significance. The findings revealed a positive and statistically significant relationship between technology cost and business growth (B = 0.720; β = 0.704; t = 18.175; p < .001). Consequently, the null hypothesis that technology cost had no statistically significant influence on business growth was rejected. The study concluded that technology cost had a positive and statistically significant influence on business growth among WSMEs in Kenya. The findings provided evidence-based guidance for WSMEs, financial institutions, and policy implementers in developing affordable financing mechanisms and cost-effective approaches to technology acquisition, implementation, and training to support WSME business growth.