SMME development stunted by poor ICT
According to a study undertaken by ForgeAhead, the key to the SMMEs’ success includes access to information and the capacity to create advantage from the effective use of that information. Therefore larger enterprises and government agencies must work together to develop and implement policies and activities that enable SMMEs to thrive.
A major issue that impacts the social and economic upliftment of Africa is unemployment. “There is an urgent need to critically examine ways and means of improving the prospects for growth and employment in Africa. The ICT sector has been identified by many developing countries as a key sector for socio-economic growth,” Schofield adds.
“Development in Africa has long been hampered by poor communication networks as Africa is a late starter in the area of SMME development through ICTs. Although common to developing countries, Africa is ‘information poor’ and the communications infrastructure is poorly developed. This affects small enterprises in developing countries, as entrepreneurs fail, or make wrong decisions, because they do not have access to appropriate information to assist them in making decisions,” he explains.
According to Schofield, investing in ICTs for SMME development will assist in resolving the constraints of communication and information flow experienced by small businesses.
“The use of ICTs brings benefits to SMMEs, such that it can reduce time and costs of running business processes and improve the quality of such processes, and on the other hand, put them in contact with a host of like-minded organisations and best practices, which act as an online university, guiding them and empowering them with information that can add value in their lives,” he concludes.
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