Study of extent of ICT adoption and its impact assessment in small and medium enterprises Gujarat experience

Abstract

Small and medium enterprises though are using information and communication technologies in their businesses processes but, are yet to ascertain its contribution to business growth. ICT investments are considered to be expenditure with no financial advantage and therefore are not favoured by resource constrained SMEs. For any entrepreneur to adopt ICT in business, its impact should be known to them in terms of benefits and value addition provided to the business so that the investment decision becomes easy. Though ICT provides equal opportunities to all businesses, the success comes to those who are able to integrate it seamlessly with their business processes and align it with their growth strategies to gain competitive edge. The quantum of success depends largely on not just the number of technologies implemented but also on the extent to which they are used. This research aims to find out the extent of ICT adopted by the small and medium enterprises of Gujarat and also assess the benefits achieved and value addition brought about in business processes after their implementation. To achieve these objectives, a firm level study of SMEs was carried out in the districts of Ahmedabad, Rajkot and Surat. A descriptive research design using mixed method approach was followed for the study. Questionnaire based survey and personal interviews were carried out for data collection. The results confirm that there is a considerable difference observed in the categories of ICT adopted by the small and medium enterprises of Gujarat. ICT Adoption has several positive impacts on the businesses of SMEs. These benefits may not necessarily be quantified in financial terms but do get reflected in the form of functional benefits or value additions perceived and observed in firms. Impact of ICT adoption depends on the extent to which it is deployed in any organization. On the basis of the study and the analysis carried out, the research offers recommendations to SME owners, industry associations, product vendors and government