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(e.g. sub-contracting to local large customers; export support
to link to overseas customers); and other marketing support.
Macro-level support
Successful adoption and effective use of ICT by growth or liveli-
hood enterprises is crucially dependent on the environment
they are operating in. The limited resources of MSMEs in devel-
oping countries mean that they are more dependent on the
external environment for ICT services than large-scale enter-
prises. In particular, the effective use of ICT for MSMEs is
significantly affected by the constraints and shortcomings
present in the policy, institutional and market environment.
Full participation in e-commerce and widespread adoption of
ICT for enterprise operations will require expansion of the ICT
infrastructure and other essential services (e.g. electronic
banking). The development of a strong user base would support
MSMEs to enter into e-commerce and support services – such
as public access facilities (telecentres).
In summary, the essential macro-steps required to develop
and promote ICT amongst MSMEs are:
• Development of infrastructure and facilitation of access;
• Government on-line;
• Improved knowledge/awareness;
• Support to adopt technology by enterprises and sectors;
• E-commerce and ICT sector development.
Meso-level support
In general, the most effective intermediaries for MSMEs will be
commercial organizations, and/or those able to add value to
MSME goods and services by providing other marketing chain
resources. Private sector business membership organizations
should be considered as effective and sustainable information
providers for both livelihood and growth enterprises. ICT-
capacity should therefore be built within:
•
Trade associations
– representing national (small) business
sectors (e.g. tourism, legal, accounting, manufacturing,
etc.)
•
Chambers of commerce
– representing the private sector
within districts or regions
•
Umbrella associations
– national associations dealing with
government
•
Employers associations
– organized at a national level.
Interventions should concentrate on support for facilitation,
technical assistance and incentives encouraging the competitive
performance of new and existing Business Development Service
(BDS) providers, innovations, and the development of appro-
priate service products. Agencies should also focus more on
policy advocacy pressing to improve macro policy-level inter-
ventions.
One possibility to provide business information services (BIS)
to MSMEs is to use ICTs to network services already existing,
providing a single entry point (e.g. one-stop-shops) and oper-
ating the network and support services on a commercial basis.
UNIDO’s BISnet model – established through a consortium of
information providing organizations – provides a suitable
framework achieving that purpose.
ICT may also support the sustainability and outreach objec-
tives of MFIs, through enhancing the outreach and effectiveness
of the private and public sector, the non-profit oriented commu-
nity (NGOs, community and area based organizations) as well
as the BDS institutions.
Donors and governments that provide funds to ICT inter-
mediaries at least must be aware that there might be other – or
even better – interventions possible with the resources invested
in ICT. This is particularly of issue in developing countries
given higher technology cost/lower income, demand and given
the far greater penetration of pre-existing information tech-
nologies (e.g. radio, newspapers, television).
Prioritized action plan
Concluding the above, an action plan could recommend to:
• Support the enabling environment for supply- and
demand-related macro-level interventions, including adopt-
ing national strategies for ICT development
• Raise awareness among donor and enterprise support agen-
cies about the role of ICT for productivity and
competitiveness
• Develop demand-driven information services incorporat-
ing e-partnerships and development of local content with
a sustainability requirement
• Develop an authoritative knowledge base of good practice
on ICT through support for networking, including e-
networking with business partners
• Support development of the ICT sector and ICT technical
capability, including localization of ICT sector support
services
• Develop integrated e-business support and productivity
enhancement packages for SMEs through sector strategies, such
as through the use of e-appraisal tools (e.g. UNIDO’s method-
ology for project preparation and appraisal – COMFAR).
[
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Mr. Abel J.J. Rwendeire, Managing Director, Programme
Development and Technical Cooperation Division, UNIDO