The Perception of MSMEs on the Applicability of IT in Tanzania

This report presents investigative study aiming to determine the perception of Entrepreneurs from Tanzania in utilization of Information Technology (IT) resources in enhancing Micro, Small and Medium Enterprises (MSMEs). The MSMEs sector is believed to have three great impacts in social development including Economic development, poverty reduction and employment creation. IT, on the other hand is regarded as the prime mover of economic undertakings. In this regards, IT is an integral part of entrepreneurship. However, many findings have revealed the existence of a gap in utilization of IT among MSMEs, the four major bottlenecks being the cost of acquiring technology; lack of MSMEs knowledge and skills to utilize the technology; lack of efficient IT infrastructure and poor IT Policies in developing countries. The findings in this research show that the the deadly obstacle is the false perception of MSMEs on the necessity and advantage of utilizing IT to enhance MSMEs business. 81% of MSMEs need sensitization on the utilization of IT to boost their business undertakings. In this research, recommendations are provided to alleviate the situation.