The Effects of Digital Platform Usage on the Business Performance Among Informal Traders in Dar Es Salaam

Abstract

This study investigated the impact of digital platform usage on the business performance of informal traders in Dar es Salaam. Informal trading, a vital part of the Tanzanian economy, has increasingly adopted digital platforms such as social media, mobile payment systems, and e-commerce tools. The research explores how these platforms impact key performance indicators such as capital growth, customer base expansion, operational efficiency, and profitability. A mixed-methods approach, combining both quantitative and qualitative methods, was employed to gather data from a sample of informal traders. Findings reveal that digital platform usage significantly enhances business visibility, improves customer engagement, and efficient transaction processes, contributing to increased revenue and growth. However, barriers such as digital literacy, cost of access, and network stability were also identified. The study concludes that while digital platforms present significant opportunities for informal traders, addressing the challenges is essential for maximizing their potential. The insights from this research offer valuable implications for policymakers and stakeholders aiming to support the digital integration of the informal sector