ICT's Impact on SMEs in Zanzibar: A 360-Degree Appraisal

: The integral role of Information and Communications Technology (ICT) in global socio-economic growth is universally acknowledged. Zanzibar, too, recognizes ICT's potential to foster enterprise development. This study conducts a focused analysis of the symbiotic relationship between ICT and small and medium enterprises (SMEs) in Zanzibar, encompassing ICT's significance, adoption challenges, and its impact on SMEs' growth. Employing a descriptive research design, data collection involved a structured questionnaire distributed to a random sample of 100 respondents. Analysis was conducted using the Statistical Package for Social Science (SPSS), yielding insights communicated through percentages, tables, and graphs. The findings underscore ICT's pivotal role in SME development, with a substantial proportion deriving benefits from its integration. Key variables—ICT's importance, implementation, and influence—are identified as catalysts for improved SME performance. However, challenges persist, including limited expertise, slow internet, setup costs, and security concerns, underscoring the need for refined ICT strategies. Recommendations echo the importance of continuous ICT enhancement, advocating for advanced tools to secure competitive advantages. Moreover, policy interventions by governmental bodies and private entities like the Chamber of Commerce are


Introduction
Small and Medium Enterprises (SMEs) play a pivotal role in driving economic growth, not only in Tanzania but also in both developed and developing nations (Adekunle & Tella, 2008).Within this landscape, Zanzibar stands out with a substantial number of SMEs contributing significantly to its economic stability and progress (RGoZ, 2006).Acknowledged for their contribution to productivity, growth, job creation, and innovation, SMEs are vital components of Zanzibar's economic fabric (Nielinger, 2003;OECD, 2000).
In the contemporary global context, Information and Communications Technology (ICT) emerges as a central driver of economic growth.Governments worldwide are actively promoting ICT adoption across sectors, including SMEs, recognizing its potential to catalyze advancement (Galloway & Mochrie, 2005).This emphasis on ICT integration aligns with the notion that businesses should leverage these technologies to maximize benefits (Denni, 1996).[1] In the 21st century, ICT has proven pivotal in business performance, with broadband networks, mobile phones, and the internet as testaments to its transformative influence (Martin et al., 2002).Its impact extends beyond business operations, altering societal dynamics in work, life, and recreation (Curtin, 2002;Hamad Said, 2014).Zanzibar's Vision 2020 underscores the importance of SMEs in sustainable industrialization, envisioning their growth as a key priority (Said, 2014) performance.[3] The study aims to explore the nexus between ICT and SMEs' business performance, with a focus on identifying the specific impacts of ICT on enhancing SMEs' operations and growth.By shedding light on this crucial aspect, the study contributes to the broader discourse on ICT's transformative potential within Zanzibar's SME sector.However, it is essential to acknowledge that the study has its scope and limitations, which will be delineated in subsequent sections.

Objective
The primary aim of this study is to comprehensively evaluate the influence of Information and Communications Technology (ICT) on the enhancement of Small and Medium Enterprises  gained prominence due to its potential to catalyze growth, innovation, and market expansion.
Scholars like Adekunle and Tella (2008) underscore that SMEs have a substantial impact on economic growth in both developed and developing countries.[4] This assertion aligns with the significance of SMEs in Zanzibar, highlighted by the Regional Government of Zanzibar (RGoZ, 2006).However, the recognition of ICT's transformative role in this growth trajectory is imperative.Challenges in ICT Integration: While the benefits of ICT are evident, challenges persist in its successful integration.These challenges encompass limited awareness, deficient administrative structures, and related inefficiencies (Khatibu, 2015).The specific obstacles faced by SMEs in Zanzibar remain underexplored, posing a gap in the current literature.[6] Research Objectives: Aligned with the study's primary aim, the specific objectives encompass assessing the array of ICT tools and devices adopted by SMEs in Zanzibar Additionally, the investigation aims to gauge the extent to which the utilization of these ICT tools contributes to SME advancement within the Zanzibar context.Addressing a critical aspect of ICT integration, the research also seeks to identify and analyze the unique challenges confronting SMEs in Zanzibar as they incorporate ICT into their daily operations.

ICT Adoption in
the intersection of ICT and SMEs is a crucial field of exploration, especially within the Zanzibar context.Existing literature underlines ICT's potential to drive SME growth, but it also highlights challenges associated with adoption and integration.[7] This study's objectives, focused on ICT tools, their impact, and the challenges they pose, are positioned to contribute significantly to the understanding of how ICT can enhance SMEs in Zanzibar and bridge the current research gap.

ICTs in SMEs Growth & Factors Affecting Adoption in Zanzibar
The utilization of Information and Communication Technologies (ICTs) has been widely considered essential for the growth of Small and Medium Enterprises (SMEs).However, discerning the precise impact of ICTs amid other influencing factors is complex, and rapid enterprise growth doesn't necessarily equate to high ICT usage (Locke, 2004).The perception of ICTs' benefits can often surpass their measurable effects (Falcke, 2002).Notably, growth itself can unveil operational needs that ICTs are best equipped to support (Howard, 1994).[8] Recent studies highlight the interconnectedness between ICTs' acceptance and a company's financial performance.Enterprises that employ internet technology for customer communication Organizational and Behavioral: Dealing with issues of capacity, risk perceptions, and supporting business processes.Lack of strategic ICT knowledge and necessary skills are prominent hurdles.
ICTs' impact on SME growth is intricate, influenced by various factors.While SMEs often encounter barriers to ICT adoption, their significance cannot be underestimated, particularly in the context of developing regions like Zanzibar.[24] This dynamic interplay between technology and enterprise development shapes the contemporary landscape of business growth and societal advancement.[25] Research Methodology Medium Enterprises (SMEs) within the Urban district, totaling one hundred entities.[17] The sample size chosen for this study comprised eighty SMEs situated within the Urban district.To ensure comprehensive insights, one hundred respondents were selected from these eighty SMEs, encompassing diverse groups across the district.[12] The utilization of one hundred respondents facilitated a robust representation of the entire SME landscape within the Urban district, including both ICT users and non-users.[18] Table 1.

Data Collection Techniques:
The research employed a combination of primary and secondary data collection techniques, including questionnaires and literature review.
Questionnaire Method: The primary data collection relied on questionnaires, a widely employed tool for gathering firsthand insights.Closed-ended questions were particularly useful in soliciting original information from respondents who actively employ ICT tools/devices in Zanzibar.[13] The questionnaire administration occurred through direct physical interaction between the researcher and the respondents.This approach not only facilitated data collection but also provided a platform for the researcher to address any queries that arose during the process.[19] Secondary data, comprising existing information and insights, were sourced through a comprehensive literature review.This involved a systematic examination of previously published studies, reports, and scholarly articles relevant to the subject of ICT adoption in SMEs.The collected secondary data served as a valuable backdrop against which the primary data could be analyzed and interpreted.[20] Frequency: Quarterly Doi: https://doi.org/10.55938/ijgasr.v2i3.58 17 The research methodology harnessed a combination of primary and secondary data collection techniques to explore the dynamics of ICT adoption within Zanzibar's SMEs.The questionnaire method, involving closed-ended questions and direct interaction, enabled the acquisition of specific insights from SMEs actively engaged with ICT tools/devices.[21] Concurrently, the literature review enriched the research process by contextualizing the findings within the broader landscape of existing knowledge.[22] Simulation and Results: Exploring ICT Adoption and Challenges in Zanzibar's SMEs Demographic Information: The study began by examining the demographic characteristics of the respondents, shedding light on gender distribution, marital status, age groups, education levels, establishment periods of businesses, sources of initial capital, business sectors, and employee categories.

Gender of Respondents:
The research found that 59% of respondents were male and 41% were female, reflecting a higher male representation in SMEs.[14] This could be attributed to their predominant roles in economic and family development.Assessment of ICT Tools/Devices Used by SMEs: The study found that computers (53%) were the most widely used ICT tools, followed by phones and Android applications (31%).This suggests that computers are pivotal in business processing and operations.

(
SMEs) in the region of Zanzibar.Specific Objectives: a.To evaluate the array of ICT tools and devices implemented by SMEs in Zanzibar.b.To investigate the degree to which the utilization of ICT tools and devices contributes to the advancement of SMEs in the Zanzibar context.c.To identify and analyze the specific SMEs: The relationship between SMEs and ICT adoption has been a subject of exploration in various contexts.Galloway and Mochrie (2005) emphasize ICT's pivotal role as a driver of economic growth, propelling governments worldwide to prioritize its integration across diverse sectors, including SMEs.Nonetheless, this uptake remains influenced by factors such as awareness and administrative capabilities, as elucidated by Denni (1996).The dearth of research addressing ICT adoption challenges specific to SMEs in Zanzibar underscores the significance of this study's objectives.Impact of ICT on Business Performance: Research consistently highlights the positive correlation between ICT integration and business performance.Martin et al. (2002) emphasize ICT's centrality in enhancing business performance, while Khatibu (2015) demonstrates its impact on expanding market reach and facilitating access to information.[5]Moreover, ICT's influence transcends

Figure 4 :
Figure 4: Source of Business Capital

Figure 5 :
Figure 5: Business Sectors Engaged by SMEs

. The International Journal For Global Academic & Scientific Research (IJGASR) Volume 2, Issue No. 3, 2023 ISSN Number: 2583-3081
ICT systems by Zanzibar's SMEs, stemming from limited awareness and inadequate staff administration, hindering their efficiency and competitiveness.Against this backdrop, this study addresses a significant research gap by investigating the impacts of ICT on improving SMEs in Zanzibar.Notably, while previous studies acknowledge the importance of ICT, few have focused on its direct effects within Zanzibar's context.Thus, this research is essential to bridge this gap and contribute to the understanding of the intricate relationship between ICT integration and SME

International Journal For Global Academic & Scientific Research (IJGASR) Volume 2, Issue No. 3, 2023 ISSN Number: 2583-3081
ICT's Role in Enhancing SMEs: The integration of ICT tools and devices into SME operations has

International Journal For Global Academic & Scientific Research (IJGASR) Volume 2, Issue No. 3, 2023 ISSN Number: 2583-3081 Frequency: Quarterly Doi: https
://doi.org/10.55938/ijgasr.v2i3.5815 exhibit 3.4% faster sales growth than those not utilizing the internet (Clarke et al., 2006).This reality is particularly significant for developing countries like Zanzibar, where modern ICT tools and devices are imperative for enterprise improvement and national progress.Bournemra and Soltance (2001) emphasize the indispensability of harnessing new information and communication technologies for African countries' development.Factors influencing the adoption of ICTs in SMEs are multifaceted, often shaped by resource limitations.Duan et al. (2002) underscore the lack of ICT skills and knowledge as a formidable challenge faced by SMEs across European countries, including the UK, Poland, and Portugal.
[10]hie and Brandly (2005) categorize barriers to ICT adoption into three domains: Strategic: Addressing issues impacting business direction, capital investments, and ICT networks.SMEs need to establish their own IT/ICT strategic objectives to guide their growth (Ritchie & Brandlly, 2005).[9]Technological:Pertaining to technology complexity and professional support for production.This level should facilitate the implementation of IT/ICT strategic plans for a robust architecture (Ritchie & Brandley, 2005).[10]

International Journal For Global Academic & Scientific Research (IJGASR) Volume 2, Issue No. 3, 2023 ISSN Number: 2583-3081
16Study Population and Sampling: The study targeted a population encompassing all Small and

Period of Business Establishment: The
findings indicated that a significant proportion (37%) of businesses were established between 2006 and 2013, showcasing a surge in new SMEs.Emerging technologies and modern business tools might be driving this trend.International Journal

Table 3 : Period of Business Establishment
Source of Initial Capital: The majority (45%) of SMEs relied on personal savings for initial capital.This approach, likely due to its cost-effectiveness and permanence, is prevalent compared to other capital sources.