How SMEs in Western Cape of South Africa use ICT

Abstract

Information and communication technologies (ICT) have the potential to change the way organizations do business in either a positive or negative way. ICTs benefits however usually supersede its negatives, hence business owners both large and small are moving to the digital world. Although there has been studies on ICTs effect on business organizations, little has been done on the Small and Medium Enterprises (SME), in developing countries.The research was conducted to identify how SMEs in the Western Cape of South Africa use ICT. Issues examined included currently employed ICT, person to computer ratios, spending and acquisition of ICT, and adoption of new ICT. The research found that SMEs in the Western Cape are using a wide range of ICT, with 88% using networks, and 70% using some form of customer relationship management software. The person to computer ratio was computed and 78% of SMEs in the Western Cape showed a 1:1 (person:computer) ratio. Spending habits with regards to three ICT sectors (hardware, software and services) were analysed and although majority of SMEs showed no adjustment in their spending habits, 30% did claim an increase is expected for both software and hardware spending. SMEs are intending to adopt more ICT in the future. The majority of SMEs claim to have achieved significant amounts of value from the use of ICT.