Local SMEs need technological boost

The Business Development Company recently conducted a survey in the SME sector to assess some of the ways in which ICTs can be used to increase competitiveness among smaller businesses.

This study was conducted by Digital Business Limited as part of a larger project which focuses on developing capacity and strengthening the capability to use ICTs. Another recently launched component of this project, the smeXchange, has provided the technological platform on which the SMEs could have the opportunity to exhibit their products and services.

The survey examined usage patterns and opinions in the following areas:

- E-Business and E-Commerce

- Application Service Providers

- Open Source Software

- SME Company Database and the B2B Portal

While most businesses use some form of technology, through e-mail or a simple website, the use of popular e-Business and e-Commerce applications are still not widespread among SMEs. Most indicated that they would like to move toward more sophisticated applications and say they recognise it will become imperative in the near future to incorporate more technology into their business operations.

Owners/operators realise that relevant and accurate information, which is more easily obtainable through the use of technology, can make a difference in the viability of their businesses, a difference seen on the bottom line. E-commerce in particular can lower barriers to entry into new markets which were previously inaccessible and allow companies to take advantage of developments such as the Caribbean Single Market and Economy (CSME).

A popular reason cited for the low application of technology among SMEs is the cost of installing and maintaining the appropriate solutions. Application Service Providers (ASP) and Open Source Software (OSS) present two viable opportunities for SMEs to explore technologies at a reduced cost to them.

This survey attempted to measure the knowledge and potential interest of the SMEs in these two areas which would inform programmes to develop these services through the BDC and could also provide information on demand for SMEs that develop these applications themselves as a service to others in the sector.

A sample of 50 businesses was drawn from the Business Register with sample elements chosen at random from each stratum in proportion to the stratum’s size relative to the population size.

For the purposes of this survey, an SME is defined as an independent company with fewer than 50 employees and either an annual turnover not exceeding $5 million or a balance sheet not exceeding $5 million in assets.

The survey was conducted online via the Digital Business website which can be found at http://www.digitalbusinessltd.com/smesurvey.htm. Approximately 58 percent of the sample responded.