Benefits and Challenges of Information and Communication Technology (ICT) Adoption on Micro and Small-Scale Enterprises in Nsawam Adoagyiri Municipality.

Abstract

Micro and Small-Scale Enterprises (MSSEs) play important role in economic development by contributing to job creation and poverty alleviation. Using a mixed-methods approach, this study sought to investigate MSSE's adoption of Information and Communication Technology (ICT), the positive effects of the adoption, and the associated challenges. Drawing on a survey of 250 MSSEs and a qualitative interviews with 10 MSSE owners, the study found that MSSEs in the municipality were influenced by a variety factors in their ICT choice. These factors were new market developments, improved customer services, cost reduction, etc. The MSSE that adopted ICT in their daily operations had the opportunity to exploit new business markets and improve sales and business relations. The results showed that some MSSE owners used these technologies in doing business transactions, acquiring relevant market information, and reaching out to potential customers. However, they faced several challenges in the process of adopting these technologies. Lack of ICT support, maintenance cost, and lack of ICT skills among staff were the top three challenges faced among other challenges identified. Since they faced challenges associated with financial constraints and technical training, it was recommended the state provide credit facilities to MSSEs who are willing to procure ICT and provide training services for these enterprises.