Thesis Title: Adaptability of Social Media Towards Enhancing Performance of Small and Medium Enterprises in Kigali city, Rwanda

Student’s Name: Muhingabire Karake Gloriose

Supervisors: names:

1. Dr. Joshua Olang’o Abuya
2. Dr. Yonah Etene

Abstract:

In Rwanda, branding and market penetration by local enterprises continues to be impeded. Small and medium enterprises have inadequate knowledge of digital marketing. Digital marketing, which has become a global norm, is still in its infancy stage in Rwanda. The purpose of this study was to investigate the effect of the adaptability of social media networks on the performance of small and medium enterprises in Rwanda. The specific study objectives were: to establish the effect of Facebook usability on performance of small and medium enterprises, to assess the role of Instagram utilization on performance of small and medium enterprises, to investigate how WhatsApp, contribute to the performance of small and medium enterprises in Rwanda and to evaluate moderating effect of ICT infrastructures on social media networks and performance of small and medium enterprises. The study adopted descriptive research design. The target population consisted of 393 small and medium enterprises operating in the industry sector in Kigali City. The research used quantitative data obtained from the questionnaires. Simple random sampling and purposive sampling techniques were used. Descriptive and inferential statistics was used to analyze the data. Results of the study were that there was a statistical significant effect of Facebook on performance of small and medium enterprises in Rwanda as evidenced by linear regression unstandardized coefficient of 0.659, standardized coefficient of 0.57 with a t value of 9.513. Instagram and performance of SMEs had unstandardized coefficients value of 0.952, standardized coefficient Beta, (0.737) with a t value of 14.957 which was statistically significant at p-value of <0.05. WhatsApp use and performance of SMEs had unstandardized coefficient value of 0.903, standardized coefficient Beta (0.920) with a t value of 32.170 which was statistically significant at p-value<0.05. When ICT infrastructure is enhanced among the SMEs in terms of encouraging consistent use of the smartphones and computer, modem to access internet, use database software to store and manage information and use of billing software and payroll software would help to control the costs. It was therefore concluded that continual use of the Facebook helps to get new sales, its promotion helps to increase sales and helps customer identify with the SME’s product brand, all these improving the performance of the SMEs in Kigali City, Rwanda. Usage of Instagram features like hash tags, location tags, discover, reeds and Instagram content strategy by the customers helps in brand awareness, thus boosting the sales of the products and ultimately enhancing the performance of the SMEs. Consistent use of the WhatsApp by the owners of the businesses and their customers could lead to improved performance of the SMEs in Kigali City, Rwanda. The study therefore recommends that SMEs’s owners should encourage continual use of the Facebook, Instagram and WhatsApp by the owners and the customers to help in getting the new sales, to increase in sales and customer identification with the SME’s product brand. The Government of Rwanda should create free internet connectivity (3G internet bandwidth and 4G internet), boost wide area network and local area network, ensure there is unlimited internet plan, affordable limited data plan and ensure internet penetration to all of its regions reaching all the target customers. The findings therefore would also inform the Rwandan government about the contributions of SMEs to the country’s economy and how to implement policies that encourage business to utilize social media. They would allow SMEs to thrive in dynamic business environment and increase their performance, hence expanding the country’s economy.