Adoption of E-Technology in Small and Medium Enterprises (SMEs) - A Study in Khulna City of Bangladesh

Abstract

Purpose: Small and medium enterprises (SMEs) are considered as the engine of economic growth throughout the world. To cope with the challenges of technological advancement and globalization, SMEs need to be conversant with internet-based technology. This study aimed at identifying the level of technology adoption by the SMEs of Khulna city, attitudes of SME owners towards e-technology, and major impediments in such technology adoption. Methodology: Opinion of 100 conveniently selected sample of SME owners were collected and analyzed using percentage, mean, factor analysis, regression analysis etc. to reach 10 study findings. Findings: The level of e-technology adoption was found to be very low among the SMEs and the SME owner’s attitude toward such technology adoption were also negative in most cases. Among the major impediments, inadequate proficiency of SME owners, less supportive external agents, legal and security barriers, lack of knowledge, insufficient network structure, and financial constraints were found to influence the low rate of e-technology adoption by SMEs in Khulna city.