the effect of E-commerce on the performance of Small and Medium Size Enterprises in Cameroon case of Njieforbi company Ltd Buea

ABSTRACT

In recent decades with development of internet, the e-commerce has been recognized as an instrument for establishing business models. in applying the e-commerce, the large firms generally face lower financial and infrastructural barriers while the small to medium enterprises face with resource limitations, particularly the financial resources in applying this tool. Hence, this study set out to assess the effect of E-commerce on the performance of Small and Medium Size Enterprises in Cameroon case of Njieforbi Buea. The study adopted descriptive research design with a sample of 20 employees, that is the management staff of Njieforbi enterprises Buea, through a Purposive sampling technique and stratified random sampling. The study used questionnaire for primary data collection. The result of the study revealed there is positive influence of the use of computers on the product sales of the institution, in addition it was found that that the cost of advertising is reduced when the institution uses commerce. It was therefore concluded that that the more the customers are served using e-means it is more convenient for them to carry out transactions. The study recommends that Njieforbi company Ltd should Increase the training of employees on computer usage.

Summary of Findings

The study of assessed the effect of E-commerce on the performance of Small and Medium Size Enterprises in Cameroon case of Njieforbi Buea revealed interesting facts that have been summarized below:

The results indicate that about 57% of the respondents agree that the cost of advertising is reduced when the institution uses commerce. Furthermore, the result of the findings reviews that 52% of the customers were of the opinion the transactions are actually made more convenient by the use of e-commerce.

Moreover, the findings indicate that about 48% of the respondents were of the view that the use of e-banking actually increases the amount of time they save on their transactions. Also, the data indicate the 26% of the respondents are of the view that the computers of the institution are functioning effectively.4% agree and 21% of the respondents are neutral thus, not up 50% of the individuals think that the computers of the institution were effectively functional.  

Besides, the findings indicate that   about 39% of the employees of the institution make use of computers in the institution. Thus overall, less than 50% of the   individuals are of the opinion the employees of the institution use computers.

More so, the findings indicated that about more that 50% of the respondents are does the view that cost of the institution is increased by the use of machines in transactions.

5.2 Conclusion

Electronic commerce has significantly transformed the way in which firms conduct business, allowing them to gain more business opportunities and competitive advantage. Therefore, the study conducted to identify the effect of E-commerce on the performance of Small and Medium Size Enterprises in Cameroon case of Njieforbi Buea. The study was built around three specific objectives/research questions. The first objective was exploring, the types of E-commerce’s adopted by Njieforbi company ltd Buea, the second objective access how cost associated with ecommerce affect the performance of Njieforbi company ltd Buea Buea and the third objective examine problems Njieforbi company ltd Buea Buea face in adopting E-commerce.

To begin with, the findings of the study revealed that majority of the employee were male this reason could be that most of the activities carried by Njiefobi requires man power. More so, result of the study revealed that about 57% of the respondents agree that the cost of advertising is reduced when the institution uses commerce. Also, results of the shows that above 52% of the customers were of the opinion the transactions are actually made more convenient by the use of e-commerce. In addition, the results of the study reveal that majority of Njieforbi employees were not computer specialist.

5.3 Recommendations

Based on the findings of the study, the researcher enumerates several feasible recommendations that could invariably improve the performance of small and medium sized enterprises Cameroon.

1. This study recommends that management should Improve on effectiveness of computers by installing highly security software that prevent the system from hackers, also by purchasing or developing a computer software that best suit their institutions, also they can equally developed a website that only deal with the buying and selling of their products and services.
2. The study recommend that the management should Increase training of employees on computer usage, by so doing it will go a long way to increase their effectiveness and efficiencies and those high performance and more customers retention through e-commerce.
3. Furthermore, we also recommend that Njieforbi Buea should Increase the number of machines so as to enhance performance, this can be done by getting in to contract with computer manufacture so as reduce cost. Thus, e-commerce requires more computers.

5.4 Recommendations for Further Research

1. This researcher suggests that since this study was only limited to the effect of the effect of E-commerce on the performance of small and medium enterprises, any further study could be carried out on its effects on performance of employees.
2. Since this study was only limited to one SMEs in Buea municipality similar study could be done while including SMEs in other major cities Cameroon.
3. Furthermore, future studies can carry out the same study but different research designs, population, sampling and size should be used.

FURTHER READING: ECOMMERCE IN CAMEROON