SMEs are the backbone of most countries’ economies and are expected - notwithstanding
the barriers they face - to play a critical role in the digital economy in
terms of their contribution to GDP and employment. SMEs are variously defined in
different jurisdictions based on measures such as the number of employees, annual
turnover, and level of fixed investment. Both developed and developing countries’
economies revolve around SMEs, and they are generally seen as engines of economic
growth worldwide. By and large, they constitute the majority of business
establishments in most countries. Despite their importance to most economies,
SMEs face myriad problems, especially in developing countries. Some of these
problems include: lack of access to credit, limited ICT skills, stiff competition from
large enterprises, high cost of technology and connectivity, and limited international
business networks. In order for SMEs to continue to occupy their enviable position
in the economies of most countries, especially in the digital economy, the societies
in which they operate and the enterprises themselves will have to become e-ready
by obtaining modern technological infrastructure, competent ICT skills, access to
credit, and other related factors.
The importance of the e-readiness of nations, and by extension SMEs, in the
digital economy cannot be overemphasised. SMEs are increasingly adopting ICTs
in their business transactions, especially the Internet and the World Wide Web, to
reap the benefits of the digital age. There is a distinctive pattern of progression in the
adoption of the Internet/ICTs among SMEs, from having simple static websites, for
example, to developing more interactive sites where ordering and payment can be
made online. Publicly owned SMEs are more likely to adopt ICTs than private but
non-family owned SMEs, followed lastly by family-owned enterprises. While there
are other factors that motivate SMEs to adopt ICTs in their business transactions,
the most important is the perceived benefits of ICTs (e.g. ease of communication,
advertising, creating portals, online banking, e-procurement and e-payments). Other
factors that influence the adoption of ICTs by SMEs include the CEO’s level of
education, sophistication of online transactions, and costs of technology.
Internationally, SMEs in developed economies, such as those found in North
America, Europe and parts of Asia, have attained a much higher level of e-readiness
than those in developing countries. SMEs in developing economies face numerous
problems, some of which have already been outlined. A further obstacle to SMEs’
is their level of information readiness – their ability to determine their information
needs and leverage the resources available, including ICT, to meet those needs. SMEs
require various kinds of information to survive in the competitive global business
environment, from start-up information to information about the day-to-day operations
of the business. Most of the information sought may relate to legal assistance,
market information (e.g. trends and prices), policy changes and legislation, technical
assistance, and access to credit, among others. In order to satisfy these needs, SMEs
require different information resources, such as the Internet, brochures, regional
libraries, correspondence with colleagues in other enterprises, and participation in
workshops and seminars. The information obtained is put to use in planning and
policy formulation, understanding market trends, carrying out market intelligence
surveys and more. In their endeavor to access relevant information for their operations,
SMEs face further information seeking obstacles, such as inadequate skills,
lack of access to information, and the inability to interpret the information received
and put it to effective use.