A Study on Challenges to Information Technology Adoption within Small and Medium Enterprises in Growing Town: An Analysis of Technology Inclusion in Malawi


Authors : Malizani Silavwe; Dr. S.P. RAJA; Dr. Glorindal Selvam

Volume/Issue : Volume 8 - 2023, Issue 3 - March

Google Scholar : https://bit.ly/3TmGbDi

Scribd : https://t.ly/pl4BE

DOI : https://doi.org/10.5281/zenodo.8000630

Abstract : This study examined how small and medium Enterprise (SMEs) can benefit from information technology (IT) in enterprises in digitalization time. Considering this, we stress the importance of barriers preventing IT adoption within Small and Medium Enterprises (SME). Digital technology is the new method of technology using-digital technology, mostly through internet. Digital technology is built on the internet that can bring services closer to SMEs with reduced in cost. Data were collected from 60 small and medium enterprise clients of Visionfund Malawi one of the second largest Microfinance Institution in Malawi which provides loans to small and medium enterprises to boost the business. Results showed that most of the small and medium enterprise are lacking digitalization technologies hence it they are being forced to spend more resources like money and time to walk long distances to access a service at a nearby Visionfund Malawi financial service centre. Problem Statement: Despite an increase in access to ICT in Malawi, SMEs continue to be excluded on ICT services such as digitalization facilities and training which is vital for their survival, investments choices and diversification of portfolios for them to withstand digitalization shocks within the economy. The study will therefore examine the extent to which digitalization inclusion, specifically digitalization education and trainings have been embedded and provided to SMEs as a key component for strengthening SME’s resilience to economic shocks and survival. The Malawi government has been conducting digitalization awareness campaign in selected districts across Malawi through World Bank funding during this Covid 19 pandemic period. However, despite the availability of such awareness initiatives, a majority of SME’s continue to face challenges as they cannot either grow or end up closing shops due to the fact, they cannot make informed economic decisions and choices as a result of lack of digitalization facilities. Motivation: My new system if very good in terms of security, speed and accuracy and it will improve interms of turnaround time and revenue collection. Challenges, need of digitalization: There is very slowly in digitalization solution and sustainability works. However, digital marketing is essential to save the gap between microfinance institution and Small and Medium Enterprises. The combination of these factors suggests the need to create a research agenda for this field. Challenges: Challenge 1: Customer orientation and value proposition. Most of SMEs are very behind technologies, most of their business are manually done like when the want to access financial from the Microfinance the y need to go physical to the MFI office. Metrics allow us to define indicators that can determine the assessment of sustainability from clients and other stakeholders. Challenge 2: digital consumer behavior. The penetration of internet and other digital services is growing at a snail pace, as a result most of SMEs are affected. Challenge 3: supply chain. Proportion of people with access to the internet and basic digital gadgets such as mobile phones has be stagnant for the past three years as a result most of SMEs have been not spared. Techniques of proposed system: I have proposed the customer mobile app and website forthe business. All the products will be uploaded on their website products, Staff will be going to the field with only Mobile where they will be registering customer using the mobile app and the data will be pushed to the database. This will save a lot in terms of stationery and time from both end sell and consumer, while to the client side they can assess the product while sitting at their home no transport cost and able to do transaction on their mobile, transaction like saving pushing from the bank to their mobile app and loan repayment from their mobile to the bank. Metrics: Here are some metrics which will be used in my research paper:  Search engine optimization (SEO)/keywords  Total website traffic  Traffic from channels Justification: The intended objective of this proposal was to provide enough research to justify why digital marketing is such a massive concept within not only communication but also a business of any scale. This project is addressing the principal audience of small businesses by working in conjunction with a financial firm as well as communication by using digital marketing literature to create a set of strategies to be

Keywords : Systematic review, Small sized business, Smalland medium enterprises (SMEs), Technology adoption.

This study examined how small and medium Enterprise (SMEs) can benefit from information technology (IT) in enterprises in digitalization time. Considering this, we stress the importance of barriers preventing IT adoption within Small and Medium Enterprises (SME). Digital technology is the new method of technology using-digital technology, mostly through internet. Digital technology is built on the internet that can bring services closer to SMEs with reduced in cost. Data were collected from 60 small and medium enterprise clients of Visionfund Malawi one of the second largest Microfinance Institution in Malawi which provides loans to small and medium enterprises to boost the business. Results showed that most of the small and medium enterprise are lacking digitalization technologies hence it they are being forced to spend more resources like money and time to walk long distances to access a service at a nearby Visionfund Malawi financial service centre. Problem Statement: Despite an increase in access to ICT in Malawi, SMEs continue to be excluded on ICT services such as digitalization facilities and training which is vital for their survival, investments choices and diversification of portfolios for them to withstand digitalization shocks within the economy. The study will therefore examine the extent to which digitalization inclusion, specifically digitalization education and trainings have been embedded and provided to SMEs as a key component for strengthening SME’s resilience to economic shocks and survival. The Malawi government has been conducting digitalization awareness campaign in selected districts across Malawi through World Bank funding during this Covid 19 pandemic period. However, despite the availability of such awareness initiatives, a majority of SME’s continue to face challenges as they cannot either grow or end up closing shops due to the fact, they cannot make informed economic decisions and choices as a result of lack of digitalization facilities. Motivation: My new system if very good in terms of security, speed and accuracy and it will improve interms of turnaround time and revenue collection. Challenges, need of digitalization: There is very slowly in digitalization solution and sustainability works. However, digital marketing is essential to save the gap between microfinance institution and Small and Medium Enterprises. The combination of these factors suggests the need to create a research agenda for this field. Challenges: Challenge 1: Customer orientation and value proposition. Most of SMEs are very behind technologies, most of their business are manually done like when the want to access financial from the Microfinance the y need to go physical to the MFI office. Metrics allow us to define indicators that can determine the assessment of sustainability from clients and other stakeholders. Challenge 2: digital consumer behavior. The penetration of internet and other digital services is growing at a snail pace, as a result most of SMEs are affected. Challenge 3: supply chain. Proportion of people with access to the internet and basic digital gadgets such as mobile phones has be stagnant for the past three years as a result most of SMEs have been not spared. Techniques of proposed system: I have proposed the customer mobile app and website forthe business. All the products will be uploaded on their website products, Staff will be going to the field with only Mobile where they will be registering customer using the mobile app and the data will be pushed to the database. This will save a lot in terms of stationery and time from both end sell and consumer, while to the client side they can assess the product while sitting at their home no transport cost and able to do transaction on their mobile, transaction like saving pushing from the bank to their mobile app and loan repayment from their mobile to the bank. Metrics: Here are some metrics which will be used in my research paper:  Search engine optimization (SEO)/keywords  Total website traffic  Traffic from channels Justification: The intended objective of this proposal was to provide enough research to justify why digital marketing is such a massive concept within not only communication but also a business of any scale. This project is addressing the principal audience of small businesses by working in conjunction with a financial firm as well as communication by using digital marketing literature to create a set of strategies to be

Keywords : Systematic review, Small sized business, Smalland medium enterprises (SMEs), Technology adoption.

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