Authors: Godfrey I.P.Kageuka
Abstract: Digital transformation is becoming more and more important for small businesses if they are to improve their efficiency, gain access to customers and stay competitive. Yet the capacity of small businesses to adopt and make effective use of digital technologies is hindered by a variety of financial, technological, skills-related and security-related obstacles. The present study looked at the barriers influencing the adoption of digital tools by small businesses in Morogoro Municipality, Tanzania. It was based on the Unified Theory of Acceptance and Use of Technology (UTAUT) and used a mixed-methods approach with a descriptive cross-sectional research design. Data were gathered from small business owners and managers through the use of structured questionnaires and semi-structured interviews. Out of the 318 questionnaires distributed, 276 valid responses were received, which gives a response rate of 86.79 per cent. The quantitative data were analysed using frequencies and percentages, while the qualitative responses were examined thematically. The results indicate that the lack of capital was the most significant barrier, cited by 92.7 per cent of the respondents, then came high internet costs (86.9 per cent), lack of digital skills (74.6 per cent), poor network connectivity (71.7 per cent), lack of training (67.0 per cent), fear of cybercrime (55.07 per cent) and lack of trust in online systems (52.9 per cent). The qualitative findings supported these results, particularly by pointing out the difficulty of buying digital devices, the problem of meeting ongoing internet costs, the difficulty of coping with unreliable connectivity and the challenge of building confidence in online transactions. The study demonstrates that digital transformation among small businesses in Morogoro Municipality is not merely a matter of willingness to use technology but is instead limited by insufficient facilitating conditions, especially in the areas of finance, infrastructure, skills and digital trust. The study suggests that integrated interventions be put in place which combine affordable finance, better internet infrastructure, practical digital skills training, increased cybersecurity awareness and stronger mechanisms for building trust in online systems.
