ICT FOR FOSTERING SMALL AND MEDIUM SCALE ENTERPRISES IN TANZANIA: WHAT ARE THE BLOCKING FACTORS?

This paper presents the results of a research carried out to identify the major barriers of adopting and use of Information and Communication Technologies on Small and Medium Scale Enterprises in Dar es salaam, Tanzania. Information and Communication Technologies is a pathway to economic development in both developed and neighbouring countries than it is in Tanzania. Data on these aspects of ICT was collected from 98 SMEs through a questionnaire. The results of the study show that SMEs in Tanzania are aware of some of the critical barriers of ICT adoption. Majority of the firms participated on this study use the ICT business mainly for general business information, and hardly doing mobile transactions and e-commerce. Lack of reliable power, skilled IT experts, suitable legal and regulatory practical framework, limited availability of online banking service, poor telecommunication infrastructure, high cost of internet connectivity and language barrier were the major barriers in adopting ICT. It is concluded that TCRA and body of electrical power should work hand in hand to tackle the problem of infrastructure in the country. There is a need for more focus and concerted efforts on increasing awareness among SMEs on the limitations of ICT adoption Keywords: Information and Communications Technology (ICT), Small and Medium sized Enterprises (SMEs), ICT adoption, ICT barriers, e-commerce. Information and Communications Technology (ICT), Small and Medium sizedEnterprises (SMEs), ICT adoption, ICT barriers, e-commerce.