Adoption and Acceptance of Electronic Billing Machines among Small and Medium-Sized Enterprises (SMEs) In Rwanda (Case Study: Nyarugenge District)

Adoption and Acceptance of Electronic Billing Machines among Small and Medium-Sized Enterprises (SMEs) In Rwanda (Case Study: Nyarugenge District)

NGABOYASE Van Eyck, Dr. MUREKEYIMANA Theogene

Faculty of Economics, Social Sciences and Management Department of Entreprise Management Masters of Science in Taxation

DOI: https://dx.doi.org/10.47772/IJRISS.2025.909000583

Received: 17 September 2025; Accepted: 23 September 2025; Published: 19 October 2025

ABSTRACT

The study investigates how the adoption and acceptance of Electronic Billing Machines (EBMs) is occurring within Rwandan SMEs and analyzes technological, organizational, and environmental factors with SPSS Version 24. The use of EBMs is perceived to be moderately easy (mean=3.35), but there exist great compatibility challenges (mean=2.32), with 59% of SMEs reporting difficulty in operating EBMs, while affordability concerns were cited by 51%. Although 80% of companies have technical expertise, their financial readiness is limited (mean=2.35). Management support (60% positive) exhibited an unexpected negative correlation with technical capacity (r=-0.237, p<0.05). Environmental factors were pivotal since government policies drove the adoption (80% influence), and industry competition would comply due to high pressure (62.6%), a situation where technical support was still unreachable by 48% of the respondents. The study presents significant compatibility, affordability, and support infrastructure gaps and proposes specific targeted training, subsidies, and regulatory adjustments to support EBM integration. Descriptive statistics, correlation, and regression analysis were conducted in SPSS Version 24 to substantiate the significance of these relationships as well as need for policy interventions tailored to SME capacities and market dynamics.

Keywords: EBM adoption, SMEs, Rwanda, tax technology.

GENENERAL INTRODUCTION

Background of the Study

Worldwide, Initiatives to increase national tax compliance and SME-to-SME transaction transparency have resulted in the adoption of EBM. For example, Italy, Brazil and Kenya have passed laws mandating the use of EBMs These records are simpler for tax authorities to understand and allow timely accurate local tax filing, as well as tax returns since the device provides a template related to keeping the track of sales and generating these records needed by SMEs to maintain books and issue receipts. For example, in nations with high levels of informal activity improved technology has meant enterprises are legally able to be brought into the tax system which increases effective rising incomes as more taxation of human activities takes place (Mascagni, 2018).

There have been challenges in adopting EBMs for SMEs around the globe despite the advantages. Small firm proprietors in numerous areas face problems such too high tools procurement as well as upkeep costs, technical issues, and poor training on their appropriate usage (Elia et al., 2009). Two key issues are data security and fixing system errors, which render in services support. Governments and international institutions should work to eliminate these barriers by providing financial support to SMEs, extensive training programs, as well as robust support structures that help small firms get the most out of the benefits EBMs have to offer. Overcoming these hindrances may help to bolster EBM adoption worldwide, thereby facilitating greater tax compliance and improving the SME operating environment more generally.

In Africa, since the year 2013, the utilization of EBMs has played an instrumental role in improving tax compliance and revenue collection particularly among SMEs. Nations including Tanzania, Kenya and Rwanda have deployed EBM systems to ensure openness in tax filing and stimulate efficiency; Electronic Bill Payers replace more paper dollars and sales counts, which reduces errors and accounting burden of keeping track with pen and paper by small business. Aside from ensuring that companies comply with tax laws, the technology also aids in formalizing the informal sector which employs a significant percentage of the economy in many countries across Africa. Click on Deutscland/Deutschland-2017 in the headline for background) By Leigh Thomas PARIS, May 5 (Reuters) – France says finance ministers from over half the nations committed to a global tax reform plan have backed down on mandatory rules and give smaller developing countries (Twesige et al., 2019).

However, there are numerous challenges to the implementation of EBMs in Africa. Most SMEs are put off by the initial costs of acquiring and keeping equipment well maintained and in demand from professionals: which also means time to train. There are also issues with the reliability of technology and reliable internet access, that can be hard in remote locations. Additionally, some business owners may have limited technical capability when it comes to leveraging EBMs and reluctant to do so. To resolve the issues, governments need to provide financial assistance or subventions for EBM procurement They also need to make sure business owners are able to use the technology by providing resources for robust training programs (Harelimana and Gayawira, 2020).

In Rwanda, The Electronic Billing Machine (EBM) technology has been revolutionary for small and medium-sized businesses. (SMEs). However, the EBMs were introduced by the Rwandan Revenue Authority (RRA) to improve tax compliance and ensure accurate VAT reporting (Twesige, 2020). The use of EBMs from SMEs enables an easy log of sales transaction and issuance of receipt which might ultimately make tax compliance easier. This technology not only relieved the burden associated with entering data into a ledger, it also reduced the potentiality fraud and error when reporting tax. Therefore, the SMEs now can maintain accurate financial records, important for accessing financial services and company planning.

Notably, despite these advantages, a number of challenges have emerged in implementing evidence-based management (EBM) among SMEs in Rwanda. A good number of small companies’ proprietors have, in fact, expressed that they are actually deterred from knowing how to use the tools by the perceived absence of technical training and know-how. Speaking of which, as for the cost, small businesses must deal with a huge expense to buy and keep their EBMs running. Further, the dependability of the system and the need for continual technical support have been raised. Targeted training programs and improved mechanisms to provide grant will likely improve the EBM systemoptimal utilization increases its efficacy in all SMEs in Rwanda (Ntahobari and Twizeyimana, 2020).

Problem statement

Indeed, the speed with which operational efficiency and tax compliance improvements progress for the SMEs in Rwanda is being very much hindered by the rate of EBM use. Many SMEs do not want to adopt this technology, despite how much the government is really trying to push these initiatives on transformation towards digitization to improve tax collection and reduce leakages (Harelimana, 2020). Some of the reasons attributed to that reluctance include misconceptions regarding the benefits of EBMs, fears of very high deployment costs, and the thought that devices are very complicated. And it is even made worse by inequitable access to the necessary infrastructure and support systems, particularly in rural areas where poor internet connectivity and limited energy are still barriers to adoption. Because of the digital divide, SMEs are unable to take use of the downstream advantages of EBMs, such enhanced invoicing processes and simplified tax.

Another obstacle is the way SME owners see the implementation of technology; many of them favor conventional approaches or doubt the benefits and dependability of EBMs. The unique demands of SMEs are frequently ignored by initiatives to encourage EBM use, such as information sharing and training, which makes them even more reluctant to accept new technology. The probability of SMEs completely converting to EBMs is still low in the absence of specialized assistance and training. In order to create a climate where SMEs are eager to use digital billing systems, it is imperative that these obstacles be removed. This would enhance tax compliance and aid in Rwanda’s economic progress.

Research objectives

The following research objectives served as the basis for this study:

General objective

The general purpose of this study will be to examine variables impacting the adoption and acceptance of EBM among SMEs in Rwanda.

Specific objective

The following specific objectives were integrated into the study:

The study will incorporate the following particular objectives:

1. To ascertain the degree to which technological attributes impact Rwandan SMEs’ adoption of EBM
2. To evaluate the ways in which organizational traits affect Rwandan SMEs’ adoption and acceptance of EBM services
3. To examine how environmental factors affect Rwandan SMEs’ adoption and acceptance of EBM

Research questions

1. To what degree do technological features affect Rwandan SMEs’ adoption and acceptance of EBM?
2. What impact do organizational traits have on Rwandan SMEs’ adoption and acceptance of EBM?
3. How do Rwandan SMEs’ adoption and acceptance of EBM reflect their environmental characteristics?

Research Hypotheses

The following theories will underpin this research:

(a) H0: The adoption of EBM by SMEs in Rwanda is positively and significantly impacted by technological characteristics.

(b) H1: The adoption of EBM by SMEs in Rwanda is not positively and significantly impacted by technological characteristics.

(a) H0: Organizational characteristics significantly and favorably affect Rwandan SMEs’ adoption of EBM.

(b) H1: The adoption of EBM by SMEs in Rwanda is not positively and significantly impacted by organizational characteristics

(c) H0: The adoption of EBM by SMEs in Rwanda is significantly influenced by environmental characteristics.

H1: In Rwanda, SMEs’ adoption of EBM is not significantly impacted by environmental characteristics.

Choice of the Study

Due to the significant contribution of SMEs in the economic development of Rwanda and notably their difficulty in implementing a digital transformation, researchers have selected to study EBMs for this important role they play. This is an effort that is not lacking in potential, SMEs are a massive proportion of Rwanda’s economy and also key to innovation and job growth. Even so, their limited acceptance of EBMs makes it difficult to carry out business efficiently and tax collection effectively. It is by focusing on this research that we intend to recognize the specific factors such as technological readiness, financial constraints and cultural acceptance toward digital solutions which influence the adoption of EBMs in the SME sector. Understanding these mechanisms is essential for the implementation of targeted interventions to enhance the practice of EBM and thus create a more stable and legal business climate in Rwanda.

Significance of the study

The study is important to the academic and policy-making communities because it may add to the body of information regarding the acceptance and use of Electronic Billing Machines (EBM) among small and medium-sized enterprises in Rwanda. Primarily from an academic standpoint, this research will expand our knowledge on how emerging technologies are embraced by small and medium-sized enterprises in developing countries. It contributed some color to the numerous factors that support the effective fusion of digital billing systems with traditional business operations, so giving the context required for a full knowledge of why and how they are accepted.

Second, in light of the study’s findings, judgments on the implications for Rwandan stakeholders and policy makers may be formed. The findings provide important insight into which barriers should be taken into account when developing targeted interventions and systems of support that are customized to the requirements of small and medium-sized enterprises. It might result in stronger infrastructure, better training programs, or more substantial financial incentives to ensure a seamless transition away from manual billing. In the end, pushing SMEs to use EBM can lead to high tax compliance, which would improve SMEs’ operational efficiency and provide them a competitive edge in Rwanda’s broader efforts to achieve digital transformation and economic growth.

Study delimitation

The study on Adoption and Acceptance of EBMs Among SMEs in Rwanda shall be conducted as follows; That the study would focus on relatives SMEs as per Rwandan authorities do not consider itself all other enterprises including the huge multinational companies and informal ones. Second, some regions, such as selected districts within provinces caught the eye of these opportunities and constraints that make SMEs unique in places like Nyarugenge District are not representative of other regions selected to ensure a wider exposure to Rwanda urban and rural areas.

LITERATURE REVIEW

Impact SMEs’ adoption of Electronic Billing Machines (EBM)

The research consisted of two parts: the exploitation of the Technology Acceptance Model (TAM) in SMEs, evaluating how perceived usefulness and perceived ease samd perceived ease of; two intention factors prescribed by the Technology Acceptance Model impact the technology follow with of new technologies within SME’s. The results highlight that these factors have a substantial effect in inhibiting the EBM acceptance willingness of SME owners. Impact of Technological Attributes on SME Adoption. This study investigates technological parameters such as cost, reliability, and compatibility with existing systems and their impact EBM adoption in SMEs. This study discovered that low-cost and high-reliability EBM systems are very vital for the acceptance of Rwandan16 SMEs (Nazir and Khan, 2024).

The third study was the Mediating Role of Technological Compatibility in Technology Adoption. This study looked into the importance of technological compatibility with existing business processes on the adoption of new technologies. Findings indicate that SMEs will more willingly adopt EBM as long solution to consider compatibility as a very key technological attribute.

Impact of Organizational Size on EBM Adoption

There are studies investigating the influence organization-related factors have on the adoption and acceptance of Electronic Billing Machines (EBM) services by SMEs in Rwanda: the impact of organizational size on EBM adoption. This study examines the influence of organizational size on the adoption and acceptance of EBM services; greater adoption of EBM will most likely be done with larger SMEs that possess greater resources and capacity for technological integration as opposed to smaller SMEs (KAGABO, 2021).

The next study is on the Role of Management Support for EBM Adoption; in other words, this study looks at the impact of management support on the adoption and acceptance of EBM services. The findings suggest that strong management support and commitment greatly increases the chances of successful adoption of EBM within SMEs (Harelimana and Gayawira, 2020).

Finally, The Effect of Organizational Culture on EBM adoption; this study investigates the effect of organizational culture on EBM services adoption and acceptance. It found that SMEs with an innovation and change-oriented culture are more likely to adopt EBM than those more conservative and resistant to change (Harelimana, 2020).

Environmental factors affect SMEs’ adoption and acceptance of Electronic Billing Machines (EBM):

How Government Policies and Regulations Affect EBM Adoption; this research studies the impact of government regulations and policies on EBM adoption for SMEs. The claim was made that having a supportive regulatory framework and incentives for technology adoption is highly likely to enhance EBM adoption by SMEs. Role of Market Competition in EBM Adoption, this research scrutinizes the influence of market competition on adopting and accepting EBM among SMEs. Therefore, SMEs situated in highly competitive markets are more likely to adopt EBM in order to enhance efficiency and gain a competitive advantage (Efuntade, 2020).

Influence of Technological Infrastructure to EBM Adoption, the study indicates the extent to which technological infrastructure including internet connectivity and technical backing has an implication to the extent of EBM uptake. The study shows that better technological infrastructure helps SMEs in Rwanda find adopting EBM easier and efficient (Noella, 2024).

RESEARCH METHODOLOGY

Research design

A mixed-method design requires both quantitative and qualitative data collection and analysis methods (Östlund et al., 2011). A comprehensive approach was thus created for studying the adoption and acceptance of electronic billing machines among SMEs in Nyarugenge District. The quantitative aspect involved surveys and questionnaires to provide numerical data whereby SMEs would provide their perspectives on the usage and impacts of electronic billing machines. The qualitative component comprised interviews and focus groups aimed at deeper insights into the experiences and perceptions of owners and managers of SMEs regarding the machines’ implementation and use. This mixed-method approach provides a more thorough and nuanced understanding of the research subject.

Source of Data Collection

The sources of the data collection for this study entail both primary and secondary data. Primary data was collected through the survey, interview, and focus group approaches to collect information from the SME owners and managers in the Nyarugenge District area. Secondary data were obtained through existing literature that consisted of reports and other studies about the adoption and acceptance of electronic billing machines. The combination of primary and secondary sources of data makes a more holistic and reliable dataset for research purposes.

The target population group for this study consisted of three major groups: Small and Medium Enterprises (SMEs), Rwanda Revenue Authority (RRA) Administrators. For the SMEs, respondents were mainly business owners, managers, or financial officers who provided data through structured questionnaires. These respondents were selected since they were directly impacted by tax incentives and would assist in shedding light on how such incentives influence investment and performance. Finally, the RRA Administrators included tax policy analysts, compliance officers, or senior officials responsible for designing and enforcing tax incentive policies. They were also engaged through interviews to offer expert opinions on the regulatory and administrative aspects of tax incentives. This multi-tiered approach ensures a holistic understanding of the issue by bringing together the views of those most affected by tax incentives (the SMEs themselves) and those tasked with implementing and overseeing them.

Techniques of data collection

Methods of data gathering for this study included surveys, questionnaires, interviews, and focus groups. Surveys and questionnaires were used for quantitative data collection regarding the acceptance and adoption of the electronic billing machines by SMEs located within the Nyarugenge District, while interviews and focus groups provided qualitative data, rendering a deeper insight into the experiences and perception of SME owners and managers concerning the implementation and usage of those machines. These methods ensure a broad and elaborative collection of the data required for the study. quantitative aspects of how the digital economy impacts the ability of Rwanda’s small and medium-sized companies (SMEs) to collect taxes and taxpayer satisfaction with existing use and acceptance of electronic billing devices are examined. The study population comprised taxpayers from the business sector in Kigali.

Sample size

Sampling always has a controversial salience in the social sciences and epidemiology; it is part of a broader discussion in the entire scientific method. The process of choosing a small percentage of responders from the target population is known as sampling. A descriptive sample size was used in this study, and the center population consists of 19733 SMEs who were enlisted from various sectors within Nyarugenge District. According to Nigel (1999), the following formula, created by Yamane (1967), was used to select this sample from this population.

The formulae used to determine the sample size is written as follows.

n=N/(1+N(e)²)

Where     n: sample

               N: population

              (e): sampling error =10%

where e is the degree of accuracy, n is the sample size, and N is the population size.

n=19733/(1+19733(0.1)²)= 99.49

Data Collection

100 taxpayers that conduct business in Kigali were gotten questionnaires to ascertain the impact of the digital economy on revenue collection. To gather the primary data, participants were given self-administered questionnaires to complete from 19,733 Taxpayers (Target Population).  The completed surveys were gathered as soon as the respondents are done. The polls were issued from February to March of 2025, and the sample size were be 100 respondents.

Reliability and Validity

Reliability refers to the consistency and dependability of the research instrument in measuring the adoption and acceptance of Electronic Billing Machines (EBMs) among SMEs in Rwanda. An instrument is considered dependable when it can yield similar results when a study is repeated by other researchers under comparable situations. The reliability of this study has been examined through the application of Cronbach’s alpha score in determining internal consistency of the questionnaire items. A high score (value greater than 0.7) for Cronbach’s alpha shows that the research instrument is stable in that it yields consistent responses from different respondents. Furthermore, a few SMEs were subjected to a pilot study in order to fine-tune the questionnaire and make sure that the questions were clear, further strengthening the reliability of the study (Izah et al., 2023).

Whereas validity discusses just how good the research tool is in measuring what it is supposed to measure (Golafshani, 2003). This research considered construct and content validity. Consultation with experts ensured content validity, while feedback from academic supervisors and tax professionals further fine-tuned the questionnaire to be more in line with the study’s objectives. In addition, factor analysis was used to evaluate the construct validity of the questionnaire items in measuring the main components of EBM uptake and acceptability, that is, perceived usefulness, perceived ease of use, and regulatory compliance.

The study ensures trustworthy findings that can guide policy suggestions for enhancing the uptake and acceptance of EBMs among SMEs in Rwanda by guaranteeing both validity and reliability.

Table 1: Reliability test

For this study, the Cronbach’s alpha was 0.79, which means that 79% of the variance in the scores which accepted because the normal range for Cronbach’s alpha is 0.7-

Data Analysis

To evaluate the effect of the digital economy on income creation, Stata 17 was utilized. It was used to analyze the replies to collect the qualitative and quantitative data. Following the completion of all surveys, descriptive analysis was performed to enter the data and evaluate it using STATA’s percentage, frequency, and mean calculations. In the first part’s description of personal information and the third part’s discussion of opinions and ideas, percentage and frequency were employed. The Likert 5-point scale was used to assess the elements that affect respondents’ satisfaction of the taxpayers in part two. A form of rating scale used to gauge attitudes or views is the Likert Scale. Respondents are asked to score items on a degree of agreement using this scale.

• From 1 to 1.80 means (Strongly Disagree).
• From 1.81 to 2.60 means Disagree.

Further, revenue generating and its analysis were analyzed with the digital economy’s effect on it using a Likert 5-point scale. Respondents were then asked to choose the level that best corresponds to their satisfaction with the sentiments posed in this section.:

• Strongly Agree = 5 points (very important factor)
• Agree = 4 points (important)
• Neither agree nor disagree = 3 points (moderately important)
• Disagree = 2 points (not important)
• Strongly disagree = 1 point (not important at all)

The data were then analyzed and interpreted according to the mean score obtained from each statement. The level of agreement was divided into 5 levels: since the biggest value of the scale is (4/5 = 0.80), the range is then calculated by subtracting (5-1) to best illustrate minimum and maximum lengths of the 5-point Likert-type scale. To the minimum value of this scale, the numerical value of number one is now added to determine the maximum value for this cell. The length of the cells is herein defined.:

• From 2.61 to 3.40 means Neither Agree nor Disagree.
• From 3.41 to 4.20 means Agree.
• From 4.21 to 5.00 means Strongly Agree.

Table 2 : The Likert 5-point scale meaning

RESULTS AND DISCUSSIONS

This chapter presents and discusses the outcome from the data collected on the adoption and acceptance of Electronic Billing Machines (EBMs) for small and medium-sized enterprises (SMEs) in Rwanda. The chapter is organized in line with the specific objectives of the study, focusing on the impact of technological attributes, organizational characteristics, and environmental conditions on the adoption of the EBMs. Quantitative data were analyzed using descriptive statistics, correlation, and regression analysis so as to elucidate patterns and relationships between the three variables studied.

4.1 Results

4.1.1 Descriptive Information

Table 3 : Education level of Respondents

Information regarding what respondents studied reveals that the majority of small and medium enterprise (SME) owners or representatives who participated in this study had their formal education up to secondary level (39%), and a close second was who had completed an undergraduate degree (35%). Approximately, some studied up to TVET programs (16%), and the fewest percentage that took part in the study had postgraduate qualification (10%). This distribution indicates that many SMEs are run by individuals with higher education, but a fair number with only secondary or vocational education manage SMEs, which is likely to influence their readiness with technology and the use of Electronic Billing Machines.

Table 4: What is your role in the business?

Those respondents’ roles within their businesses reveal that most were either owners (40%) or accountants/finance officers (32%), implying that a sizable portion of the responses were attained from individuals having more direct responsibility for financial operations and strategic decision-making. Managers contribute 17% to the sample, hence further confirming the reliability of decision-making insights about EBM adoption. A smaller portion of participants consists of salespersons (5%), shopkeepers (3%), and supervisors (3%), whose roles are more operational. This distribution suggests that EBM usage in SMEs is well-informed with respect to both administrative and financial aspects, with particular emphasis on financial accountability and ownership.

Table 5: What is the size of your business?

The distribution of business sizes among the respondents is reflected in the data. Micro-enterprises (1 to 3 employees) constitute the largest proportion – 55% of the sample. Small enterprises (4 to 30 employees) represent 15% of the respondents, while medium-sized (31 to 100) enterprises form about 30% of the respondents. This distribution indicates that most of the businesses included fall under micro-scale, meaning that feedback and experiences on digital tax tools such as EBMs are largest among the smallest category of businesses.

Figure 3 : Business Sector for Respondents

With regard to the breakdown of businesses by sector, most 58% of the surveyed SMEs are engaged in the services sector, thus confirming the preeminence of this sector in the Rwandan SME space. The retail sector comes next with 22%, indicating a fair share of businesses engaged in direct sales to consumers. Manufacturing takes an 8%, while wholesaling and others take 6% each. The sectoral diversity of the SMEs shows a wide variety of business models and operational needs that could differentially affect the acceptance and efficacy of Electronic Billing Machines (EBMs) across the different sectors, particularly whereby those in service business could accrue much more benefit from automated billing systems.

Adoption and Acceptance of EBM

Table 6: Adoption of EBM

The data indicates that EBM adoption among businesses is extremely high, with 95% of respondents indicating EBM adoption. This shows significant compliance, which can be primarily attributed to government policies and influence from peers and industry dynamics geared more toward encouraging widespread adoption.

Only 5% of businesses never adopted EBM, which is a small minority. Reasons include limited technical support, low customer awareness in some sectors, or unwillingness to embrace change.

In any case, 95% adoption level is a positive sign of progress toward fulfilling digital tax compliance and transparency, though further support and outreach may still be needed to bring the remaining ones on board.

Table 7: Satisfaction of the performance of EBM

Negative aspects are generally perceived in the surveying results, which indicates that a large majority of the respondents have positive attitudes towards the Electronic Billing Machine (EBM) operations. Of course, 65 percent of them say that they were satisfied, with another 5 percent affirming that they very much satisfied. This makes the total number of favorable opinions regarding the EBM’s performance to 70 percent. While 15 percent of them are neutral in this aspect, 15 percent break down into 10 percent dissenting and 5 percent very dissenting individuals. This indicates that the EBM is effective and satisfactory to most users, but many remain unfulfilled at unreasonable expectations or challenges during the usage of the EBM, indicating continued need for improvements in and around the EBM system’s functionality, usability, or support services.

Negative aspects are reinforced by the survey results as it seems that large proportions of the respondents had a positive attitude towards the Electronic Billing Machine operation (EBM). From them, 65 percent were satisfied; other five percent was recorded as very satisfied. Thus, this resulted in a total of about 70 percent in favor of the EBM’s performance. The rest of the participants, about 15 percent, remained neutral concerning positive or negative attitudes. In contrast, a total of 15 percent (10 percent dissatisfied and 5 percent very dissatisfied) alleged a form of dissatisfaction with the performance of the EBM. This implies that while most people are impressed and gratified by what the machine can do, that considerable minority faces challenges or unmet expectations; thus improvements will definitely be required on either functionality, usability, or even continued support services for the EBM System.

Table 8: Crosstabulation of Adoption of EBM and Satisfaction

It is shown in the crosstabulation data that most of the 95 businesses that adopted EBMs have an overall satisfaction with the machine’s performance. Sixty respondents (63.2% among the adopters) are said to be “Satisfied” while another 5 respondents (5.3%) are “Very satisfied.” Thus, it can be inferred that the performance of EBM has been viewed positively by almost 69% of its users.

However, there were some concerns raised: 15 respondents (15.8%) answered “Neutral” and another set of 15 respondents, to different degrees of dissatisfaction, 10 being “Dissatisfied” and 5 “Very Dissatisfied”. This means that happily, the majority have expressed contentment, but unfortunately, some have complained about challenges or unmet expectations with the entire system. Interestingly, across the 5 firms that did not adopt EBM, all respondents categorized themselves under “Satisfied” most likely indicating anticipated satisfaction or a general positive view based on indirect experience or industry perception.

Generally, high EBM adoption rates and positive satisfaction ratings exist, although about one-third of users were either neutral or dissatisfied, indicating areas for improvement like user-friendliness, technical support, or ongoing training.

Table 9: Chi-Square Tests

This test employs the Chi-square to further investigate whether satisfaction with performance contributes to the acceptance of evidence-based.

Pearson Chi-Square = 2.834, df = 4, p = 0.586:

The p-value of .586 is clearly much greater than the conventional cutoff employed to determine significance (e.g., .05); thus, we fail to reject the null hypothesis. This indicates a lack of a significant relationship between whether or not a business has accepted EBM and its satisfaction with its performance.

Likelihood Ratio = 4.448, p = 0.349:

This further test no less ignored significance and corroborated the conclusion of the Pearson test.

Linear-by-Linear Association = 1.245, p = 0.265:

Also looking at trends across ordered categories, this test fails to find evidence of a significant linear association between adoption and satisfaction level.

The results show divergent perspectives on the determinants of EBM adoption among SMEs, given that statistical analysis through chi-square tests does not indicate any relationship between a business’s performance satisfaction and EBM adoption (Pearson χ²=2.834, df=4, p=0.586; Likelihood Ratio p=0.349), implying that such internal performance perceptions do not significantly influence their adoption decisions. On the contrary, particular research done by Efuntade (2020) demonstrates that the external environmental factors are crucial determinants in contrast to finding that supportive government regulations and competitive market pressures significantly stimulate adoption. The difference indicates that internal satisfaction measures have little or no effect, while external factors such as the other two regulatory frameworks (Efuntade, 2020) and competition intensity serve as the prime adoption drivers. The combination of results suggests that the behavior of SME adopters is motivated more by compliance requirements and competitive necessity than perceived performance benefits, indicating the greater influence of institutional and market forces over internal organizational assessments in deciding on technology adoption or its absence.

The results show that the most commonly cited challenge faced by RRA staff in the use of Electronic Billing Machines (EBM) is taxpayer ignorance, which accounted for 35% of responses. This means that there is an immense gap in taxpayer awareness and education concerning digital tax systems. Internet connectivity problems were highlighted by 25% of respondents, indicating an ongoing challenge towards technical infrastructure, which could affect the functionality of the EBM systems. The remaining 20% of respondents were concerned about informal sectors with unqualified labor and tax avertalists, an indication of internal capacity and external non-compliance concerns. This translates to the fact that cross-cutting areas of concern requiring intervention include improving taxpayer education, upgrading internet infrastructure, and strengthening staff training for effective EBM usage for tax compliance.

This study, therefore, agrees with the existing body of literature on the sort of challenges that RRA employees face when using Electronic Billing Machines (EBM), ranging from the facts that EBM use constitutes part of the evidence in the research on digital tax administration in developing countries. The most cited challenge in this study was ignorance of taxpayers, which accounts for 35%. It is similar finding by the OECD (2020) and Kira (2017), who pointed out that lack of awareness and limited digital literacy among taxpayers hinder the adoption and effective use of digital tax systems. Similarly, the internet sources (25%) which have been highlighted in this study tend to reflect work by Munyaneza (2019) and the African Tax Administration Forum (2021). Both point out that unstable connectivity-within rural or peri-urban environments-undermines consistent accessibility to e-tax instruments like EBMs.

According to Indicated Unqualified Labor, 20% also demonstrates labor shortage challenges as shown in the literature. For instance, Ndayambaje (2018) mentioned gaps in technical capacity, not only within the tax authority but also the business support staff, which restricts the smooth adoption of digital tax solutions. Most common is the issue of tax avertalists (20%), which coincides with Waweru’s (2019) findings exposing that even when they use digital systems, there are dedicated means of evasion that go unabated without proper enforcement and compliance monitoring.

All in all, when read against the body of knowledge through the key condition of the study, it further strengthens the argument that technical barriers (internet), human capacity (skills gaps), and behavioristic challenges (ignorance, evasion) act as critical limiting factors in the effectiveness of digital tax systems such as EBMs within the Rwandan context. Such a juxtaposition further indicates the kind of multi-dimensional interventions, such as taxpayer sensitization, infrastructure development, and capacity building, that are needed to leverage the impact of digital taxation reforms.

CONCLUSION AND RECOMMENDATIONS

5.1 Conclusion

The study intended to investigate the introduction and acceptance of Electronic Billing Machines (EBM) by Small and Medium Enterprises (SMEs) in Rwanda. From the research findings, it was revealed that EBM adoption is indeed very high among SMEs (95%), but they still face many challenges that limit their acceptance and full adoption of the systems.

51% of respondents consider the cost of acquiring and maintaining the EBMs to be expensive or very expensive. This, therefore, establishes that affordability is a major barrier to broader and more effective adoption, especially for smaller businesses that do not have sufficient funds.

Despite the above argument on finances, most of the SMEs have a considerable openness to technology, indicating that 78% of businesses are either ready or very ready to adopt new technologies such as EBM. In fact, it appears that there is more structural or contextual resistance to adoption rather than adoption resistance based on technological reluctance.

One of the most important findings pertains to the accessibility of the technical support, which was revealed from the survey to be inaccessible or very inaccessible by 48% of the respondents. The obvious gaps in these post-adoption support services would lead to the unreliability and ineffectiveness of EBM use, especially among businesses with operations out of the central urban cities.

Thus, while this policy approach has led to extensive adoption of EBMs, challenges still remain as far as affordability, sustained support, and equitable access to technical assistance are concerned. Addressing these issues will be vital in ensuring that the EBM is effective in the long term and received positively by SMEs in Rwanda.

5.2 Recommendations

The recommendations made based on the findings of this research for improving the adoption and use of EBMs in SME operations in Rwanda are as follows:

5.2.1 Improve Affordability through Subsidies or Financing Options

1. The RRA may consider offering subsidies or financing programs, thereby enabling SMEs to procure EBMs on an installment or leasing basis.
2. Tax incentives could be extended to companies that adopt and frequently use EBM systems.

5.2.2 Increase and Centralize the Technical Support Services

1. There is a need to decentralize technical support centres to districts and peripheral areas to improve the functionality and user experience of EBMs.
2. Set up a toll-free helpline and on-call technician system, which will serve to support SMEs readily as problems develop.

5.2.3 Capacity Building and Continuous Training

1. Conduct regular training workshops and awareness campaigns to ensure that SMEs are well aware of the advantages and features of EBMs.
2. With the gap in knowledge filled, users could be provided with manuals that are simple to understand and also have Kinyarwanda and English video tutorials.

5.2.4 Strengthen Mechanisms for Monitoring and Evaluation

1. Regular monitoring on satisfaction level and technical challenges experienced by SMEs should be carried out through surveys and follow-ups.
2. Data collected should be utilized for the continual improvement of EBM policy design and implementation.

5.2.5 Encourage Peer Learning and Model Business Engagement

1. Develop experience-sharing platforms where SMEs that adopt EBM successfully can share their lessons with others.
2. Use successful cases and best-practice examples to eliminate doubt and create a positive peer effect.

5.3 Suggestions for Further Studies

Further studies could examine:

1. The long-term financial implications of adopting EBM on the profitability of SMEs.
2. A comparative study between urban and rural SMEs vis-a-vis EBM in accessibility and efficiency in use. importance of digital literacy in acquiring and putting into successful practice EBM usage.

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