The Impact of Information Technology Capabilities on Small Scale and Medium Scale Enterprises Gusau International Journal of Management and Social Sciences, Vol.7, No.3, October, 2024, ISSN(p): 2735-9026, ISSN(e): 2787-0383 335 The Impact of Information Technology Capabilities on Small Scale and Medium Scale Enterprises Onyeka Ruth Fidelis Federal University Otouke Email: fidelisro@fuotouke.edu.ng Abstract This research explored the connection between the information technology capabilities of small and medium-sized enterprises (SMEs). A correlational research methodology was adopted, targeting a macro perspective where one primary manager from each of the 66 SMEs was selected, resulting in a sample size of 66 participants. Data obtained through fieldwork were analyzed using descriptive statistics, such as frequency distributions and weighted averages, with the Spearman Rank Order Correlation applied to test the proposed hypotheses. The results demonstrated a significant correlation between information technology capabilities and the overall performance of SMEs. Based on these findings, it was recommended that SMEs integrate information technology solutions to improve their operational effectiveness and invest in a solid IT infrastructure. Keywords: information technology capability, small and medium scale business performance. Introduction The performance of small and medium-sized enterprises (SMEs) can be evaluated based on their ability to achieve sustainable profitability. Profitability serves as the primary defense for SMEs against unforeseen losses, bolstering their capital reserves and facilitating future growth through the reinvestment of retained earnings. A business that consistently operates at a loss risks depleting its capital base, which subsequently threatens both equity and debt stakeholders. The ultimate goal of any profit-driven organization is to preserve and create wealth for its owners, which means that an SME's return on equity (ROE) must exceed its