The Impact of Technological Advances on the Performance of Small and Medium Enterprises: Evidence from the Vhembe District

Description

Muenda Kingsley Mutshidza (Department of Business Management, Faculty of Management, Commerce and Law, University of Venda, Thohoyandou, South Africa)

Technology is constantly evolving, and small and medium-sized enterprises (SMEs) must adapt quickly to remain competitive. This study examined the effect of technological advances on SME performance in the Vhembe District of Limpopo Province. Many SMEs in the district struggle with ICT adoption due to high costs, lack of computer literacy, and the need for employee training. Using a descriptive quantitative design, 200 questionnaires were distributed and 161 were returned, yielding an 81% response rate. Data were analysed using SPSS version 28, applying descriptive and correlation analysis. Findings revealed a significant negative relationship between technology and SME performance (r = -0.526, p < 0.01). Further results confirmed that high ICT costs have a direct negative effect on ICT adoption. The study concludes that while ICT adoption can provide long-term benefits, SMEs must manage short-term challenges by investing in employee training and prioritising cost-effective technologies.