Role of Governments in Promoting ICT Access and Use by SMEs: Considerations for Public Policy, The

This 4-page e-note provides an overview of the policy considerations that are needed to promote information and communication technologies (ICTs) usage among small- and medium-sized enterprises (SMEs). It discusses critical components for a comprehensive policy and legislative strategy that would address the various policy, legal, market, technical and social considerations needed in order to create conditions conducive for encouraging ICT-enabled SMEs.

The article begins with a discussion of the potential benefits of ICT to SMEs, which are a major source of employment in many countries, and outlines reasons why governments should encourage them. Among these reasons: ICTs enhance SME efficiency, reduce costs, and broaden market reach - both locally and globally. However, according to the author, SMEs face several barriers preventing them from implementing or maintaining ICT business solutions.

These barriers include:

• SMEs' lack of information on applicability of ICT, of human and financial resources for implementation, and of broadband connections at competitive prices.
• Insecurities surrounding payment, contract, delivery, privacy, and legal protections on both the business and the client side.

The author lists specific steps governments can take to promote ICT use by SMEs. The first recommendation is that governments engage in e-commerce, particularly with SMEs, since they are major purchasers. Second, governments can use ICT to provide efficient and more transparent service, including customs clearances to business licenses to dispute resolution mechanisms. Third, "public policy is the tool by which governments can help to create an environment, and remove barriers for businesses to adopt ICTs."


There are 8 key policy considerations, including:

1. A business environment that is competitive and transparent with clear business set up and dissolution, rule of law and corporate regulations, and legal frameworks for national and cross-border transactions.
2. ICT network infrastructure and broadband deployment framed by competitive investment and service opportunities with support for new technologies in a technology-neutral stance that encourages interoperability and innovation. Public assistance to expand coverage to underserved groups should complement, not inhibit, private investment.
3. Building of regulatory trust by working against cyber-crime and spam, using cross-border cooperation and low-cost dispute resolution.
4. Facilitation of content development with a balance of protection of intellectual property.
5. Enhancement, through primary secondary and life-long skills education, of human capital.
6. Availability of objective information on costs and benefits of ICT applications in SMEs.
7. Online provision of government information and services.
8. Public-private partnerships - private sector should provide leadership through investments, capitals and other resources partnered with programmes to promote access to ICTs, particularly in rural and remote areas to promote a level playing field and an inclusive knowledge-based economy.

In conclusion, SMEs play a major role in national economies; thus, governments have an interest in the promotion of access to and use of ICTs by SMEs.