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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).

[

] 93

Mr. Abel J.J. Rwendeire, Managing Director, Programme

Development and Technical Cooperation Division, UNIDO