Challenges and Opportunities in the Digital Integration of Rural Micro, Small and Medium Enterprises in Siaya County, Kenya

This study explored the challenges and opportunities of digitally integrating rural Micro, Small, and Medium Enterprises (MSMEs) in Siaya County, Kenya, guided by the Technology Acceptance Model (TAM) and Diffusion of Innovations (DOI) theory. This study used a descriptive mixed-methods survey design. The population covered 4,800 MSMEs across 6 sub-counties of Siaya County. The MSME sample size was determined using Yamane's formula, yielding 370 MSMEs and 10 key informants were purposively selected for qualitative information. A total of 300 questionnaire responses were received and were valid for quantitative analysis. The study used structured questionnaires and semi-structured interviews to collect data. Data analysis used quantitative methods (frequency, percentage, mean, and standard deviation) and qualitative methods (thematic analysis). Findings showed both opportunities and challenges for rural MSMEs in digital integration. There are opportunities to market, access the market, sell, and make financial transactions on digital platforms, but there are gaps in formal training on digital skills, financing, infrastructure, and institutional support. The study recommends providing practical digital-skills training for rural MSMEs in Siaya County, as well as improving access to relevant financing, adequate power supply and internet connectivity, and robust institutional support for MSMEs in rural areas of Siaya County.

Digital Integration; Rural MSMEs; Digital Adoption; Digital Skills; Digital Finance

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