The Impact Of Information Communication Technology (ict) On Business Growth Strategies Of Small And Medium-scale Enterprises (smes) In The Awutu-senya East Municipality Of Central Region Of Ghana

In recent times, the pivotal role played by Small and Medium-scale Enterprises (SMEs) in Ghana cannot be overemphasized. They are frequently credited with engineering the socio-economic development through employment creation and poverty alleviation. Hitherto, these enterprises faced avoidable challenges caused by poor information management coupled with non-compliance with information communication technological (ICT) innovations. The general perception is that owners as well as managers of these enterprises willfully fail to embrace ICT innovations and programs that can easily turnaround the fortunes of their enterprises. The 21st century world is fondly referred to as a ‘global village’ with ICT being crucial in business undertakings. Spontaneously, it also creates business opportunities across geographical boundaries to enhance globalization. It is pretty obvious that in modern world of business, there is a speedy interdependence between a firm’s ability to use information technology effectively and its ability to implement business strategies and to achieve business goals. This paper examines survey results on the impact of ICT on business growth strategies and profitability of SMEs by using a survey of 162 enterprises classified as small-scale (121) and medium-scale (41) enterprises within the Efutu-Senya East Municipality (mainly Kasoa and its environs) of Central Region of Ghana. Overall, the study revealed that majority of SMEs (73.29%) studied do not make use of ICT and this to a greater extent has had a negative effect on their growth potential and success. A shocking proportion of about 27% of SMEs use ICT in their businesses but further maintained it is too expensive to operate. The study recommends capacity building for SME operators about the benefits of ICT in their business processes coupled with sensitization about its use, would invariably turn the fortunes of their enterprises.

Keywords: Information communication technology (ICT), computerized inventory control system; customer relationship management (CRM), and transaction processing system (TPS).

The 21st century has embraced itself with ICT as one of the driving forces behind accelerated business growth in the world. According to French (1996), Information technology (IT) is defined as any technology which supports activities involving the creation, storage, manipulation and communication of information; together with their related methods, management and application. ICT is a fundamental ingredient for globalization as hinted by Samuels, et al. (1990) that, computer trading has therefore, made global markets technically possible.

It is evident that ICT has brought immense innovations, improvements and advanced ways of doing business in a speedily manner in the developed economies. According to Kalakota, R. and Marcia (2001), technology is no longer an afterthought in forming business strategy, but the actual cause and driver. Hence, currently, the use of information system resources such as computers, internet, e-business, point of sales (POS) and other ground-breaking business practices is a common feature of SMEs in the advanced world. The modern business environment is not only complex but also extremely dynamic interminable and with cutting edge improvement characterized by multifaceted customer needs and wants that must be met with accuracy and momentum in order to ensure the survival and growth of small and medium scale business activities. According to Laudon and Laudon (2010), information technology is one of the important tools that managers (businesses) use to cope with change.

The business terrain is thus, controlled by strict compliance with ICT innovations through networking, internet connectivity and improved information communication flow.

Information communication is so vital in today’s business environment and thus, firms are nowadays encouraged to invest heavily information system and technology. The need to adopt state-of-the-art ICT innovations to enhance the business development processes by SMEs to improve efficiency, profitability and growth potential is inevitable.

It is upon this backdrop that this study is being conducted to adequately appreciate the impact of information communication technology on the operations of SME operators in Ghana.