Information and communications technology adoption amongst township micro and small business: The case of Soweto

Abstract

Background: No empirical evidence is available on whether or not information and communications technology (ICT) is adopted by South African township micro and small businesses (MSBs) in order to grow the business. ICT, as an enabler, can grow the business. It is evident from literature that ICT enables MSBs to be more productive and efficient.

Objectives: This research determines to what extent ICT is adopted by MSBs in Soweto, and whether or not a positive correlation exists between the adoption rate of ICT and the financial and growth performance of the MSB itself.

Method: A structured questionnaire was completed by 978 respondents to determine the extent of ICT adoption and for what ICT is used. This exploratory research provides new knowledge about the acceptance of ICT within township MSBs.

Results: The results indicate that ICT is not used to the fullest by MSBs. Rather, it is used as a basic tool for doing business but it does not form an integral part of the business. This research provides insight into the usage and adoption of ICT and it opens the door for further cross-analysis research.

Conclusion: Education and training are needed to ensure that MSBs use ICT to the fullest. MSBs embracing ICT can evolve from a survivalist SME to a more sustainable micro and small MSB.