ZA-WWW, ZA-WWW2009

Font Size: 
Internet usage in lower-end SMMEs in South Africa
J Kew, T Hooper

Last modified: 2009-08-27

Abstract


Small and medium sized enterprises (SMMEs) encompass a broad range of firms, from established traditional family businesses down to the survivalist self-employed, informal micro enterprises. Many lack the skills, support, finance and other resources necessary to sustain their businesses. This low rate of sustainability is particularly prevalent in developing countries. In developed economies, the rapid spread of ICT has lead to a decrease in the price of communication, allowing markets across the world to become more connected. In the developing world, to compete successfully, SMMEs will need to use more sophisticated information and communication technologies (ICT) to access timeous and accurate information regarding the supply of and demand for products and services in various markets. Businesses require information relating to current market conditions; market opportunities; sales prospects; where and how to improve their technology and skills; where and how to access finance and how to access appropriate business development services. The internet is an important source of business information as well as a source of potential business ideas. Access to technology is important both in accessing business information prior to starting a business and in allowing existing businesses to remain competitive in the market. This study of SMMEs in South Africa explores the level of internet usage, and how the internet is accessed by lower-end SMMEs. The study develops an understanding of the characteristics, both personal and business-related, that could be seen as having a predictive value with respect to internet usage and the primary functions of internet access in lower-end SMMEs. The findings indicate that there is a significant digital divide even within the lower-end SMME sector in South Africa, with business size and educational levels both identified as key characteristics that determine internet usage.  Business research was a common function of internet access, regardless of business size or education levels, however, more sophisticated uses, namely banking were influenced by characteristics such as business size and the educational levels of the owner.

Full Text: PDF