SMEs and e‐business

Abstract

This paper explores a range of issues surrounding the adoption of 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, and the digital divides that have emerged. Models of e-business adoption by SMEs are examined, the linear model being contrasted with the more realistic “PIT” model. Barriers to the adoption of e-business technologies and techniques are discussed, together with factors that promote successful adoption, and the major role played by human capital. It is concluded that the take-up of e-business by SMEs needs to be seen as a means to an end and not an end in itself. Government preoccupation with the take-up of the technology of e-commerce needs to be tempered with a more realistic view of how small firms operate.