Factors Inhibiting the Adoption of Applications Driven Business Solutions by SMMEs in the Western Cape

Abstract

Small, Medium and Micro Enterprises (SMMEs) employ the largest share of the workforce in South Africa, making the sector a useful tool for stimulating growth in the economy and creating jobs for the unemployed. In order for SMMEs to sustain their growth and support organizational goals they need to embrace the use of technological innovation in their environment. The study objective is to explore factors affecting the adoption of new technology in SMMEs. The study explores the role that government play in sustaining the growth and development in SMMEs. The study adopted an interpretive paradigm and used the qualitative method. A questionnaire was used to collect data from owner/managers of SMMEs in the Western Cape metropolis. The study showed that decision making around the adoption of application driven processes by SMMEs is often informal and not guided by accurate information. Some SMMEs do not fully appreciate the contribution of technological innovation to their business. It also appears that government plays no contributory role in promoting growth in SMMEs through the adoption of ICT, as most SMMEs do not know of any governmental programmes, initiatives or support provided. The study contribute to the body of knowledge on the factors affecting the adoption of application driven business solutions by SMMEs in the Western Cape.