ANALYSIS OF FACTORS INFLUENCING THE ADOPTION OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) BY MICRO-ENTERPRISES IN SOUTH- WESTERN NIGERIA

Abstract

The study focused on the analysis of factors affecting the adoption of ICT by micro-enterprises in south western Nigeria. Three hundred and forty eight micro-entrepreneur were selected using multi-stage sampling techniques. Data will analyze using frequencies, percentages, spare man correlation matrix and Tobit regression. The equation specified ICT Adoption as dependent variable and Education, income, gender, entrepreneur’s age and business size and age as independent variables. The findings revealed that ICT has not been well embraced by Micro-enterprises in Nigeria as manifested by low adoption level in the use of computers, Internet facilities and websites which tends to affects their performances.

Findings revealed by a positive and strategically significant relationship exists between Education, Income and ICT adoption by micro-entrepreneurs. This indicated that as the level of education and income increase, ICT Adoption also increases. This showed that micro-entrepreneurs are limited by their low level of education and income which served as a major hindrances to ICT adoption. Findings also revealed that micro-entrepreneur’s age and business age are negatively correlated to ICT Adoption which meant that the older the micro-entrepreneurs and the business, the lower the level if ICT adoption  as both the other business and other micro-entrepreneurs finds it difficult adjusting to ICT  adoption. The study therefore recommended that ICT training should be linked with business skills training in order to increase the likelihood of ICT adoption and usage by the micro-entrepreneurs. Furthermore, low cost computers and other ICT accessories should be provided and given to these entrepreneurs on soft loans.