SMEs and the Take-Up of E-Business

This paper explores some of the principal issues surrounding the adoption of information and communication technology (ICT) and e-business technologies and techniques by small and medium-sized enterprises (SMEs). The paper reviews the nature and extent of the take-up of these technologies by small firms, models of e-business adoption by SMEs, barriers to adoption and factors of success, and the major role played by human capital. Time specific issues are discussed in the context of e-retailing. It is concluded that the take-up of e-business by SMEs should be seen in context as a means to an end and not as an end in itself. The paper suggests that the naive preoccupation of governments' policies with the technology of e-commerce and its take-up as a mechanism to achieve economic growth through SMEs needs to be tempered with a sharper focus on how small businesses function; how they identify business opportunities, generate profits and create wealth.