Electronic Business System Adoption and Growth of Small and Medium Enterprises in Selected Companies in Nakawa Division, Kampala Uganda

ABSTRACT The study sought to establish the association between adoption of electronic business system and growth of small and medium enterprises in selected companies in Kampala-Uganda. The study was guided by the following objectives; i) to investigate the level of adoption of electronic business system in selected companies in Kampala-Uganda; ii) to determine the growth level of small and medium enterprises in selected companies in Kampala-Uganda; and iii) to establish the significant relationship between adoption of electronic business system and growth of small and medium enterprises in selected companies in Kampala-Uganda. The study employed descriptive correlational design. [)ata was collected using researcher devised questionnaires. Pearson correlation (r) was used to establish the relationship between adoption of electronic business system and growth of small and medium enterprises in selected companies in Kampala-Uganda. The level of adoption of electronic business system, (average mean 3.23) was satisfactory. The growth level of small and medium enterpises (average mean 3.03) was satisfactory. The study also established a positive but weak correlation between the adoption of electronic business system and the growth level of small and medium enterprises (r=0.136, SigO.643). The study concluded that the small and medium enterprises had adopted electronic business system in their daily business transactions but were hindered by security of their computer net works, good online marketing strategies and access to financial services from financial institutions. The study recommended that the companies should embrace technology of a higher level (i.e. IP allocation and numbering and l)ornain name protection) that would provide security of their networks during any online transactions. That the companies should address the issue of marketing by using advanced marketing strategies such as use of multimedia and offline advertising and SMEs should look at other avenues such as family members, personal savings to address the challenge of limited access to financial institutions.