Social media has transformed business operations, offering new opportunities for marketing, customer engagement, and exapnsion, especially for Small and Medium Enterprises (SMEs). In Kampala, Uganda, where SMEs form the economic backbone, social media plays a critical role in expanding market access and enhancing visibility. However, limited research exists on how these businesses adopt and use social media in this context.

This study explores the role of social media in SME growth, guided by Rogers’ Diffusion of Innovation (DOI) theory and Davis’ Technology Acceptance Model (TAM). A qualitative approach was employed, using semi-structured interviews with nine SME owners across various sectors in Kampala. Data were analyzed through thematic analysis using NVivo software. Findings indicate that social media is a key tool for communication, advertising, and real-time customer interaction. Facilitating factors such as ease of use, platform accessibility, digital literacy, and peer influence supported adoption, while challenges included high data costs, limited technical skills, time constraints, and language barriers. The DOI framework helped interpret how perceived benefits and social influence shape adoption decisions.

The study offers insights for SMEs and policymakers seeking to enhance digital engagement in similar urban settings.