E-INVOICING AND THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NAIROBI CITY COUNTY KENYA
Abstract
SMEs carry out a significant task to economic function of a country. They are main source of income to numerous entrepreneurs and also they offer job opportunities mostly to the youths. However, despite the crucial role the SMEs play, they face numerous challenges which have impacted on their performance with some closing down. One of the areas the SMEs face challenges is invoicing challenges which have prompted businesses to adopt e-invoicing technologies so as to enhance their procurement functions. The purpose of this study was to investigate influence of e-invoicing on performance of SMEs within City County of Nairobi, Kenya. During the study, descriptive research design was adopted. Target population comprised of 3000 licensed and registered SMEs working within City County of Nairobi, Kenya. Sample size comprised of 97 SMEs owners or managers. The unit of observation comprised SMEs’ owners and managers. From the target population, stratified random sampling technique was utilized to select 97 respondents. The study used structured questionnaires to collect data. Secondary data was used to supplement the primary data. Data was gathered from journals, reports, web sources and other relevant publications. Quantitative data was analyzed using descriptive statistics and inferential statistics data with the help of Statistical Package for Social Science (SPSS). In addition, descriptive statistics included percentages and frequencies. Correlation analysis and regression analysis were employed to determine the impact of e-invoicing on the performance of the SMEs. Frequency tables were used to present the findings. The study found that e-invoicing has a significant influence on SMEs performance within Nairobi, Kenya. The study recommended that all SMEs within Nairobi County should work towards ensuring full adoption of electronic invoicing which will in turn improve services offered to customers hence making them more satisfied. In addition, small and medium enterprise should adopt e-invoicing to reduce costs associated with storage, printing and delivery of paper invoices.
Key Words: e-Invoicing, SMEs Performance
CITATION: Mutunga, J. M., & Makhamara, F. H. (2020). E-invoicing and the performance of small and medium enterprises in Nairobi City County Kenya. The Strategic Journal of Business & Change Management, 7(3), 1404 – 1415.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1749
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