Assessing the effectiveness of information systems for SMEs growth and failure prevention in Lesotho

Abstract

The majority of the Small and Medium Enterprises (SME’s) fail to reach at least five years of operation. Their failure may be attributed to lack of accountability and technological advancement. The study, therefore, aimed to assess how the use of information systems (IS) may improve business profitability and prevent failure among the SMEs in Lesotho. The theoretical framework and literature ascertain that IS improves business growth. The population consisted of all the SME's operating in the Maseru district. Eleven of them were selected through a purposive sampling technique to participate in the study. The study adopted the use of in-depth semi-structured interviews to collect the data which were presented and analysed using the NVivo software which was used in the coding process to select and gather the themes for the thematic analysis. The findings indicate that all the SMEs were aware of the use of IS for the growth of their businesses. The results of the study confirmed that the adoption and use of IS does play a significant role in the businesses growth and failure prevention. For the SMEs to reach their full potential, it is recommended that SME owners use the appropriate IS and acquire the necessary skills and knowledge on how to use the IS for business growth.