CHAPTER ONE
1.1
Background to the Study
The steady
growth of micro enterprises that has
been witnessed globally and its role as an engine of growth and poverty
alleviation is undisputable Pisani, (2002).
It is particularly important to developing counties where no other
options are available control and Rhynr (2004).
The only way to reduce poverty in a sustainable way
is to promote economic growth, through wealth and employment creation. In
developing countries, small and micro enterprises are the major source of
income, a breeding ground for enterprises are recognized as a tool for
innovation and job creation. The united
nation industrial development organization (UNIDO) have emphasized the
importance of micro and small enterprises special in relation to its income generating
opportunities, effective use of local resources and their potentials for
innovation UNIDO, (2005).
Generally, small and micro enterprises have been
found to have more problems and challenges than large ones. Southern and Tilley (2000) argued that small
enterprises have higher failure rate Rayport and Jaworki (2002). Found that
small enterprises have problems of managing their records effectively. Others found that small enterprises usually
have little control over their environment and have small market shares Storey
and Cressy (2004). Furthermore, many
studies suggested that micro enterprises still avoid adopting advanced software
application Khan and Khani (2008).
Generally, the information communication technology
(ICT) diffusion in micro enterprises is low Meti (2001) showed that many micro
enterprises have made use of ICT to improve its internal communication and to
capture and manage its customers more effectively. Since ICT (Mobile phones and more) has become
a major tool in conducting business in micro enterprises and has a positive
impact on their business activities. It
will be of great importance to investigate ways of using ICT to improve these
micro businesses.
In this proposed study, the researcher aims to
investigate the level of usage of ICT in micro enterprises and then propose
qualitative approaches to infusing ICT into micro enterprises operations. Bauchi is selected as a context for this
proposed study.
1.2
Statement
Of The Problem
The
recent increase in technological advancement has had strong impact on small and
micro enterprises in other part of the world Moyinka et al (2011). They came by a result of conscious government
efforts through the implementation of policies to make information and
communication technology available to small and micro enterprises. The
government of Nigeria is equally making such effort by implementing policies to
make the information and communication technology sector more advance. It has made the economy more attractive to
attract investors in the telecommunication inductee, made it easier to import
computer related technologies into country.
The
use of information communication technology to increases productivity is one of
the problems being faced by small and micro enterprises presently due to lack
of knowledge on the benefit of information and communication technology in
their business they are still using the traditional tools to stay
competitive. Given the chance, small and
micro enterprises can identify the current economic possibilities and benefits
in adopting information and communication.
The
focus of this proposed research study is to assess the degree to which the
application and information and communication technology can help to improve the
economy and increase productivity of small and medium scale enterprises in
Nigeria. Therefore, the following
problems are state to guide the proposed research:
- Information and communication technology is not incorporated into most micro enterprises operations.
- The impact of ICT on the development of micro enterprises in Nigeria is not clearly seen.
- The level of awareness on information and communication technology by micro enterprises owners is low.
1.3 Objectives of the Study
The main objective of this proposed
study is to investigate the impact of information and communication technology
on small and micro enterprises performance and to highlight the various ways it
can be incorporated. The following
specific objectives are designed to guide the proposed research study:
- To find out ways in which ICT can be incorporated into micro enterprises for meaningful development
- To ascertain the degree of the impact of ICT to the development of micro enterprises
- To assess the level of awareness of mcroenterpises on ICT application
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