Effect of ICT Solutions on Performance of SMES in Awka, Nigeria
CHAPTER ONE
Objectives of Study
General purpose of this study is to determine the impact of ICT on small scale enterprise in Anambra state. Specifically, the study sought to:
- Determine the extent to which entrepreneurs of medium and small scale enterprises utilize ICT to create Operation efficiency.
- Find out the extent to which entrepreneurs of medium and small scale enterprises utilize ICT in enhancing Customers satisfaction.
- Determine the extent to which entrepreneurs of medium and small scale enterprises utilize ICT in Timely financial reporting.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Framework
Information and Communication Technology (ICT)
Computers and the internet are continuing to transform the economy and society, thus making the role of information and communication technology (ICT) in fostering development become more broadly acknowledged. According to Wade (2001) ICT is a techno-quick-fix for solving development problems that have spanned generations. In the opinion of Wills (2001) the internet is the largest, most powerful computer network in the world. It encompasses 1.3 million computers with internet addresses that are used by up to 30 million people in more than fifty countries.
According to UNDP (2001) ICT is basically information-handling tools which are varied sets of goods, applications and services that are used to produce, store, process, distribute and exchange information. ICT include radio, television and telephone and the new ICT of computers, satellite and wireless technology as well as the internet. These different tools combine to form our network world, a massive infrastructure of interconnected telephone services, standardized computing hardware, the internet, radio and television which reaches into every corner of the globe. ICT constitute an important sector of economic activity, achieving high growth rates in developed as well as in developing countries: a platform for exchanging data, information, knowledge, and a tool for implementing applications such as e-commerce, e- schools or e-health. ICT can play a catalytic role as an enabler to development. Recent development in technologies, reduction in prices, greater availability of networks and a more user-friendly approach to technologies are strengthening the role that ICT can play in support of development.
Nagy (2003) posited that ICT is becoming a powerful tool for mobilizing civil society and the underutilized human resource. ICT is an all purpose technology. ICT, particularly the internet, is a networking infrastructure that can connect, empower and coordinate as well as deliver all kinds of services. He maintained that this networking infrastructure is also a delivery channel for reaching the poor and remote areas with more responsive and cost effective public services. The massive backlog of educational, health, extension and social needs in developing countries are unlikely to be effectively and in a timely fashion addressed without the innovative and strategic application of these new technologies. Given the profound impact of ICT on productivity, product differentiation, competing in time and accessing markets, developing countries must use ICT in order to leverage their competitive advantage and participate in the global economy.
According to EUICT Task Force Report (2006) recent innovations in web based ICT technologies mean that the provision of software-based services becomes a real opportunity for economic growth for both small and large enterprises as the use of the internet becomes more and more pervasive. Such services will increasingly be provided through service providers that have the necessary networks and ICT infrastructure to host web services for many companies and provide access on a metered pay-as-you-go basis. New systems architecture, new web software and high-speed networking enable all this to happen on much more favourable economic terms thus providing a real incentive for utilization by enterprises.
The transforming impact of ICT in business in the global economy, therefore, motivated the researcher to determine the impact of ICT on small scale enterprise.
Small scale enterprise and Types of Enterprises
Small scale enterprise is defined by Nwaokolo, in Osuala (2004) as the ability to set up a business enterprise as different from being employed. It involves the acquisition of skills, ideas and managerial abilities necessary for self-reliance. According to Steinhoff and Burgess (1993) small scale enterprise occurs when an individual develops a new venture, a new approach to an old business or idea or a unique way of giving the market place a product or service by using resources in a new way under conditions of risk. He contended that success in enterprises and small scale enterprise are closely related and cannot be separated. Supporting the same opinion Ray, Adams and McMillian (1990) identified twelve significant contributions of small scale enterprise. These include: (a) raising productivity through technical and other forms of innovation;
- constituting a powerful tool for job creation (c) facilitating the transfer of technology; (d) playing a critical role in the restructuring and transformation of economies; (e) playing a strategic role in commercializing new inventions and products; (f) helping to reduce the ossification of established social institutions and (g) the concentration of economic power. Other contributions according to them are: (a) stimulating a redistribution of wealth and income within societies in ways that are economically positive; (b) breathing vitality into the life of large corporations and governmental enterprises; (c) making enterprises more competitive and thereby reducing both static and dynamic market influences; (d) creating new markets and (e) facilitating expansion into international markets.
Buttressing the above points Ray (1998) stated that economies, through small scale enterprise, can be made more productive, innovative, dynamic and internationally competitive in a cost- effective manner. Still in the same view Tiffin and Osotimehin (1988) advanced five reasons why small scale enterprise and technological innovation (ETI) should be considered important for Nigeria and Africa as a whole. These reasons in their view, include that:
- ETI is an effective factor that can lead to the development of the poor regions of the
- ETI can create a dynamic private sector that will diversify the national socio-economic structure and reduce the need for government participation.
- ETI does not require extensive government planning and the creation of much new organizational
- ETI is consistent with the concept of appropriate technology and self-reliant
- Development agencies have interest in ETI.
CHAPTER THREE
RESEARCH METHOD
Design of the Study
The study used the descriptive survey research design. Ali (2006) defined descriptive survey as a design which seeks or uses the sample data of an investigation to document, describe and explain what is existent or non-existent on the present status of a phenomenon being investigated. Descriptive survey research design is appropriate in the present study because the study uses sample data from managers to investigate the impact of ICT in enterprises so as to document, describe and explain what is existent or non-existent in the area being investigated.
Population of the Study
Information gathered from Co-operate Affairs Commission, Abuja shows that there are 1251 registered medium and small scale enterprises located in Awka, Anambra state of Nigeria.
Since each enterprise is managed by a single entrepreneur the population of the study therefore is 1251 entrepreneurs of medium and small scale enterprises in Anambra state Nigeria. This is further distributed as follows 876 entrepreneurs of medium scale enterprises and 375 entrepreneurs of large scale enterprises.
CHAPTER FOUR
PRESENTATION OF RESULTS
Research Question One
To what extent do entrepreneurs of medium and small scale enterprises utilize ICT to create Operation efficiency? The data answering the above research question are contained in table one.
Research Question Three
To what extent do entrepreneurs of medium and small scale enterprises utilize ICT in Timely financial reporting? The data answering the above research question are contained in table three.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
Conclusion
The conclusions are drawn from the findings of the study. Entrepreneurs of medium and small scale enterprises agree that ICT is utilized to create Operation efficiency. Results of the study emphasized that ICT have boosted production of goods and services in enterprises. From the study it is clear that ICT are not fully utilized in Timely financial reporting by entrepreneurs of enterprises. The result of the study evidenced many barriers that prevent the utilization of ICT in business in Anambra state, Nigeria.
Recommendations
Based on the findings the following recommendations are made:
- Entrepreneurs should organize on-the-job training and offer opportunities for in-service training to their staff to make them more competent in the use of
- Educational institutions should incorporate digital courses in all levels of education to develop ICT compliance workers at the points of employment.
- Entrepreneurs in the Anambra state should develop digital networks to promote digital economy and network of
- The government should reduce the tax of internet sales to promote the purchase of internet resources by
- Government should subsidize the cost of internet sales to reduce the burden of lack of fund on
- The internet providers should build in soft wares that will facilitate delivery of goods through the
- The government in their capacity should provide steady electric power supply to enable the entrepreneurs utilize ICT
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