Networks, information and small enterprises: New technologies and the ambiguity of empowerment

Is information a problem in the Micro and Small Enterprise (MSE) sector? If so, does the empowerment of MSEs necessarily come through information and communication technology? To address these questions, this study uses firm-level cross sectional data from manufacturing MSEs from selected sites in Nairobi, Kenya. Empirical analysis reveals considerable information gaps in the sector. The paucity of formal organizations and inaccessibility of small-scale entrepreneurs to market networks often drive them towards informal networks. Further evidence indicates that access to electricity and telephone is poor. Internet penetration rates are still low and there is a feeling among some respondents (about 40 percent) that IT was not useful. This was taken to imply that apart from the traditional factor 1 Such traditional factors include credit, skills, infrastructure, markets and so on.