ADOPTION OF E-COMMERCE AND SMEs GROWTH IN RWANDA CASE STUDY SELECTED SMEs in Kigali PERIOD 2020-2023

Abstract

The general objective of this study was to assess the adoption of ecommerce and its contribution to growth in small and medium enterprises (SMEs) in Rwanda, focusing on SMEs in Kigali Rwanda. during the period of 2020-2023. The specific objectives of this study were to assess the effectiveness of ecommerce in small and medium enterprises and to determine how ecommerce adoption promotes SMEs growth in Rwanda. This study investigated the impact of e-commerce adoption on the growth of small and medium-sized enterprises (SMEs) in Rwanda. Utilizing a questionnaire-based approach, data was collected from 40 SME owners in Kigali, focusing on their demographics, access to technology, and perceptions of e-commerce. The findings reveal a predominance of younger, male SME owners, predominantly operating in downtown Kigali. The analysis of technology access showed that while computers are essential, financial constraints significantly hinder their availability and quality. In terms of internet access, respondents generally reported reliable connectivity, though interruptions and cost variability remain concerns. E-commerce adoption was assessed through various aspects, including familiarity with platforms, impact on business operations, and cost-effectiveness. Results indicate a high level of familiarity and adoption, with positive impacts on visibility, customer reach, and brand recognition. The analysis further demonstrated that e-commerce significantly enhances revenue, profitability, and cost efficiency for SMEs. This study underscores the critical role of e-commerce in driving SME growth in Rwanda, highlighting both the benefits and challenges of digital integration in the local business landscape.