This was a small and medium enterprise (SME) survey carried out in Uganda as part of the SME E-access and E-usage index carried out in 14 African countries by the Research ICT Africa network (RIA). The objective was to explore the demand side of SME ICT access and usage, with the purpose of understanding the impact of information and communication technologies (ICTs) on private sector development within the context of developing countries.

Access to SMEs that would provide us with accurate data was an issue. No random sampling procedure was used but the businesses were selected based on their profile. We used a combination of sources that include business directories, and worked with a number of small business organisations i.e. Uganda Gatsby Trust, and personal contacts.

The study demonstrates that the lack of significant impact of ICT investment on business performance can be attributed to the failure to distinguish between the formal and informal sector. Using a formality index, we classified respondent SMEs into informal, semi-formal and formal businesses. While it is clear ICTs are significant input factors for both formal and informal SMEs with a positive correlation to profitability, use of ICT might be the cause or a result. ICT could be the result in the sense that SMEs purchase more ICT as a consequence of good profits or a cause in the sense that SME profitability increases due to ICT usage. Other key findings are highlighted in the report along with some actionable recommendations.