The impact of Information and Communication Technologies (ICT) on Small and Medium Scale Enterprises (SMEs) in the Kumasi Metropolis, Ghana, West Africa

Abstract

This paper presents the results of a research carried out to learn about the impact of Information and Communication Technologies (ICT) on Small and Medium Scale Enterprises (SMEs) in the Kumasi metropolis. The study investigates the extent to which the increase in productivity of SMEs can be attributed to the implementation of ICT, the contribution of ICT in the growth of SMEs that has adopted it, whether the advent of the internet has changed the ways of businesses and if the use of the internet is essential in locating additional contracts and to expand the enterprises’ market. The study provides an insight on the barriers for the adoption of ICT. Data on these aspects of ICT was collected from 40 SMEs through a questionnaire instrument. The results of the study show that only a small number of SMEs in Kumasi are aware of the benefits of ICT adoption. Majority of the firms that use the internet mainly use it to locate customer and contracts, general business information, and e-mailing rather than sourcing for raw materials. Most of the SMEs have reported a positive performance and other benefits by utilizing ICT in their businesses. Lack of internal capabilities, lack of financial support, non – availability of infrastructure and personal reasons were the major barriers in adopting ICT.  There is a need for more focus and concerted efforts on increasing awareness among SMEs on the benefits of ICT adoption. The results of the study recognize the need for more training facilities in ICT for SMEs, measures to provide ICT products and services at an affordable cost, and availability of free professional advice and consulting at reasonable cost to SMEs. Our findings therefore have important implication for policy aimed at ICT adoption and use by SMEs.

Keywords: Information and communications technology (ICT), small and medium sized enterprises (SMEs), ICT adoption, ICT use, government policy