SMEs and e‐business

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.