Rural electrification and the performance of small and medium enterprises (SMEs) in SOP-SOP sub-county, Tororo District

Abstract

The study examined the influence on rural electrification and the performance of SMEs in Sop-Sop Sub-County Tororo District. Specifically, the study sought to establish the influence of access to electricity on the performance of SMEs; the influence of dependable electricity on the performance of SMEs; as well as assess the barriers to the performance of SMEs in Sop-Sop Sub-County. This study was anchored on the resource dependence theory with a central argument that; external resources of organizations affect the behavior of the organization. A cross-sectional study design was adopted while using a mixed methods approach that involved the use of both qualitative and quantitative methods for data collection and analysis. Qualitative data was collected using interviews while a survey was used to collect quantitative data. The study population was comprised of the owners of SMEs and these were 210 participants. Purposive sampling techniques were used to select participants for the qualitative data (interviews), and simple random sampling techniques aided the selection of the 210 participants for the quantitative study (survey). Key informant interview guide comprising of open-ended questions was used to collect qualitative data while a structures survey questionnaire was used to collect quantitative data. The qualitative data was thematically analyzed and quantitative data was analyzed using descriptive statistics. Findings revealed that majority of the respondents had been in operation with their SMEs for six to ten years and more. Electricity was found accessible for SMEs, and SMEs owners demonstrated awareness of the effects of electricity on their business performance. Enterprises operating from major highways within Sop-Sop Sub County accessed power, valued power and utilized electricity for improved performance than those in rural parts situated on feeder roads. There is a lot of uncertainty on how global dynamic trends have impacted the performance of SMEs in the Sop-Sop Sub County but aspects such as capital levels, lack of entrepreneurial skills, cultural beliefs and attitudes, government taxation policies, and natural hazards have greatly affected the performance of SMEs. Therefore, the more rural electrification takes its course, the more SMEs thrive and thus, government and other stakeholder’s ought to prioritize rural electrification but the communities should also value this electricity.