INFORMATION, COMMUNICATION TECHNOLOGY IN AFRICA DEBATE PART 2

As part of the African Union Summit in Addis Ababa, Ethiopia, an Exhibition on Information and Communication Technologies was organised to show case innovative ICT projects in Africa. Held at the ECA end January to early February 2010, it was done to encourage African policy makers to invest in new technologies for social-economic growth and also to demonstrate the potential investment return in the sector.

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Benefits of Information Communication Technology to Small Medium Enterprise

Benefits of Information Communication Technology to Small Medium Enterprise

The only way to reduce poverty in sustainable way is to promote economic growth, through wealth and employment creation. In Developing Country, SMEs are major source of income, a breeding ground for entrepreneurs and provider of employment.

Growth of Small Medium Enterprises (SMEs) in Developing Country are significant, we can see SMEs data improvement below,

1.Bangladesh 177,000 of SMEs with total employment 80 %

2.Indonesia 41,000,000 of SMEs with total employment 70 %

3.Philippines 806,000 of SMEs with total employment 70 %

Indonesia have more Small Medium Enterprises than others countries, we can make conclusion that Indonesian people have more entrepreneurship mindset than others countries. Unluckily SMEs seldom use Information Communication Technology (ICT) , because of lack infrastructures, high cost Internet connection and lack of skill on ICT use. People around the world have been knowing that ICT is important to SMEs, because:

.Reduces cost of travel, materials, marketing & distribution, enhanced supply chain management, and improved internal function.

2.Market benefits. Greater reach, brand building and awareness and improved customer service.

3.Competitive benefits. 24/7 business hours and speed of transaction.

The ICT have many opportunities and challenges to SMEs, but we must overcome the challenges, as

Internal barriers, management and skills. 70 % of SME in Indonesia are lack of skill on ICT use. Limited telecommunication lines, make high cost slow connections. Beside problems above, culture of Indonesian as, culture to use credit card, shopping habits and trust / security, make SMEs are reluctant to use ICT.