The Role of ICT Business Infrastructure in The Provision of Business Development Services to Tanzanian Small and Medium Enterprises

Abstract

Purpose: The study intends to investigate the usage of ICT infrastructures in the provision of Business Development Services to SMEs in Tanzania. Specifically, the paper ascertains constraints to accessing ICT Business infrastructures by SMEs and proposes strategies for improving access.
 Design/Methodology/ Approach: The study used a mixed method approach, with purposive and simple random sampling, to recruit 28 entrepreneurs and two officials from TANTRADE and BRELA. To collect data, a Likert scale questionnaire with 32 statements was used, and the data was later analyzed using SPSS, where mean and standard deviation were obtained, as well as Cronbach Alpha for content validity.
 Findings: ICT has increased the value and nature of business operations by SMEs in Tanzania through an increase in the number of customers, increasing sales and reducing costs of operation among others. Also, factors limiting ICT usage have been identified to be, a lack of ICT skills by users, Lack of enough investment in ICT infrastructures by stakeholders and other reasons such as security concerns that entrepreneurs are not sure of their privacy and trust in the internet which was accompanied with high charges of the internet to users.
 Research Limitation: This study primarily focused on SMEs in Dar es Salaam's urban settings, specifically in the Ilala municipal council.
 Practical Implication: Improving SMEs' use of ICT will result in increased sales and profitability, as well as improved entrepreneur livelihoods and contributions to national development.
 Social Implication: The study recommends policy options for improving BDS-related constraints among SMEs, such as improving ICT infrastructure and improving ICT knowledge and skills among users, which will improve local and international business for SMEs.
 Originality / Value/ Novelty: Given that earlier studies on BDS did not offer comprehensive solutions for SMEs to access Business Development Services and Support, this study also contributes to more innovative and inclusive strategies for empowering urban SMEs. Despite the fact that some of these studies are quantitative, others have only focused on officially recognized businesses, leaving the vast majority of SMEs unattended.