Challenges limiting small and medium scale enterprises from adopting electronic commerce in Tanzania

Abstract

The paper describes the challenges of SMEs in the adoption of e-commerce technology in Tanzania. Dar es Salaam city-Ilala Municipal was chosen as a case study because SMEs found in Dar es Salaam are more likely to be using e-commerce since Dar es Salaam is among regions where most SMEs are connected to the internet are found in Tanzania. The researcher collected data from 30 SMEs found in Ilala Municipality. The data collected were then subjected to analysis using Quantitative methods and content analysis. Frequency and percentage were used in data presentation, where questions on technical challenges, Technological challenges, and management attitudes were answered. The results indicate that there are Technical, technological challenges, and management reasons that limit SMEs from adopting e-commerce. It was concluded that building any kind of electronic commerce system requires a strategy, that is the vision of the goal to achieve, a clear rationale of the business value, and a picture of the process to achieve such a goal and avoid a common pitfall.

Keywords: Challenges; E-Commerce; SMEs; Tanzania.