The use of ict by sme\u2019s in Zambia to access business information services and investments: barriers and drivers

Martin Mwila,Luka Ngoyi

doi:10.1186/s40497-019-0145-7

Abstract

The research aimed at answering key questions regarding the use of ICTs among SMEs in their businesses with an analysis and consideration of the possible factors that enable ICTs to be valued, as drivers and the possible factors that deter them not to be recognised as business development agents to be the barriers. The research was conducted on a sample of 60 SMEs with no formal business registration and 40 SMEs with formal business registration with a response of 76.7% and 87.5% respectively. Results disclosed that ICTs are a major aspect in business operations, formally and informally with the major drivers happening to be the reduction in cost and ease of doing business. The major challenges were the expense at which ICTs come with and the poor ICT infrastructure. There is a relation between the investment in ICTs in businesses with the increase in productivity as 67.04% of the respondents confirming the effect of implementation. The study recommends that Government fully implements the framework for ICTs laid in its Seventh National Development Plan (7NDP) to make ICTs available for socio-economic development through infrastructure development, reduction on taxes laid on ICT related goods and through Public-Private Partnerships (PPPs) that seek to enhance the communication.

Highlights

Zambia and like most African countries, was categorised as a developing nation which was growing to enhance its status and welfare through most sectors that support the development
The intention was to understand their application of Information and Communication Technologies (ICTs) in their businesses and the challenges Taghizadeh-Hesary, 2016 they face in enhancing their operations using ICTs
The research showed how the investment in ICT increased the productivity of businesses and provided for having a competitive advantage in the market

Summary

Introduction

Zambia and like most African countries, was categorised as a developing nation which was growing to enhance its status and welfare through most sectors that support the development. Governments in most of the development countries, Zambia inclusive, were looking at ways that accelerate the economic growth Katua, 2014a, of the countries by identifying the key areas that prove to be important in the growth. One of the common factors was that, SME’s account for 60–70% of the workforce in the developed countries according to the Organisation for Economic Co-operation and Development (OECD, 2001, OECD, 2004, OECD, 2017,) This meant that unlike the case for developing countries in which most of the workforce was provided by the Government, employment in more developed economies was provided for by the private sector, through Small Medium Enterprises (SMEs)

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Discussion

Conclusion