Empowered Sme Essay

How ICTs have empowered SMMEs

Introduction

ICTs (information and communication technology) have empowered SMEs (Small and medium enterprises) to participate in business in Africa.SMEs are often one of the biggest drivers for a countries economical growth. As the number of SMEs in a country increases however competition between them increases and it becomes much harder to compete against local SMEs and international companies offering the same or a similar product/service. IT is a significant technology and has drastically affected almost every industry. By adopting ICT SMEs can create new business opportunities expanding their client base and combat pressures from local and international competition.

Body

By using ICT effectively SMEs can cut costs by improving their internal processes and decreasing expenses. They can also improve their product by communicating with customers to get suggestions or reviews. The company can also promote and distribute products using the internet. The companies “online presence” will allow it to expand its client base decreasing risk and increasing profits.

One of the most basic uses of ICT would be replacing the time and costs necessary for face-to-face communication by using a phone line. Other ICT technologies such as email can help companies communicate cheaper and faster with clients and suppliers. Software such as SCM can be used to increase productivity and efficiency of inventory management and decrease delivery times. This will