Title:
INFLUENCE OF INFORMATION AND COMMUNICATION TECHNOLOGIES ON THE SALES AMOUNTS OF MICRO AND SMALL ENTERPRISES: A CASE OF MOBILE PHONE USAGE IN THE KENYAN INFORMAL SECTOR

Authors:
Dr. Kate O. Litondo

Abstract:
The mobile phone is the most widely used Information and Communication Technology tool in the informal economy. However, empirical evidence on the role of mobile phones usage in business among micro and small enterprises in Kenya is limited. This study attempted to estimate the effect of mobile phone usage on the performance of micro and small enterprises in the Kenyan informal sector where sales amounts were used as an indicator of performance. Cross-sectional research design and line transect sampling technique was used to select the 384 respondents who were interviewed from 8 sub-counties of Nairobi County. Ordinary least square model was used to estimate the results. The results indicate that when Micro and Small Enterprises use mobile for business, they realize significant effect on fast moving and slow moving items. However, when controlled by geographical areas of operation, owner and business characteristics, performance reduces in the fast moving items. The study recommends that Micro and Small Enterprises should be trained in best management practices which should follow an interdisciplinary approach that takes into account the geographical diversity of operations and demographic factors of the mobile phone users in the Kenyan informal sector