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Benefits of Information Communication Technology to
Small Medium enterprise
By Erny Setyawati
The only way to reduce poverty in sustainable way is to promote economic growth, through wealth and employment creation. In Developing Country, SMEs are major source of income, a breeding ground for entrepreneurs and provider of employment.
Growth of Small Medium Enterprises (SMEs) in Developing Country are significant, we can see SMEs data improvement below,
1.Bangladesh 177,000 of SMEs with total employment 80 %
2.Indonesia 41,000,000 of SMEs with total employment 70 %
3.Philippines 806,000 of SMEs with total employment 70 %
Indonesia have more Small Medium Enterprises than others countries, we can make conclusion that Indonesian people have more entrepreneurship mindset than others countries. Unluckily SMEs seldom use Information Communication Technology (ICT) , because of lack infrastructures, high cost Internet connection and lack of skill on ICT use. People around the world have been knowing that ICT is important to SMEs, because:
1.Reduces cost of travel, materials, marketing & distribution, enhanced supply chain management, and improved internal function.
2.Market benefits. Greater reach, brand building and awareness and improved customer service.
3.Competitive benefits. 24/7 business hours and speed of transaction.
The ICT have many opportunities and challenges to SMEs, but we must overcome the challenges, as
Internal barriers, management and skills. 70 % of SME in Indonesia are lack of skill on ICT use. Limited telecommunication lines, make high cost slow connections. Beside problems above, culture of Indonesian as, culture to use credit card, shopping habits and trust / security, make SMEs are reluctant to use ICT.
Growth of Small Medium Enterprises (SMEs) in Developing Country are significant, we can see SMEs data improvement below,
1.Bangladesh 177,000 of SMEs with total employment 80 %
2.Indonesia 41,000,000 of SMEs with total employment 70 %
3.Philippines 806,000 of SMEs with total employment 70 %
Indonesia have more Small Medium Enterprises than others countries, we can make conclusion that Indonesian people have more entrepreneurship mindset than others countries. Unluckily SMEs seldom use Information Communication Technology (ICT) , because of lack infrastructures, high cost Internet connection and lack of skill on ICT use. People around the world have been knowing that ICT is important to SMEs, because:
1.Reduces cost of travel, materials, marketing & distribution, enhanced supply chain management, and improved internal function.
2.Market benefits. Greater reach, brand building and awareness and improved customer service.
3.Competitive benefits. 24/7 business hours and speed of transaction.
The ICT have many opportunities and challenges to SMEs, but we must overcome the challenges, as
Internal barriers, management and skills. 70 % of SME in Indonesia are lack of skill on ICT use. Limited telecommunication lines, make high cost slow connections. Beside problems above, culture of Indonesian as, culture to use credit card, shopping habits and trust / security, make SMEs are reluctant to use ICT.
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