ICT for Small and Medium Enterprises
Executive Summary
Micro, Small, and Medium-sized Enterprises, M/SMEs represent the major traction force for the national socio-economic development, not only for Egypt, but also worldwide. There is a number of barriers towards the adoption, among which are the size of M/SME and its field of activity (i.e. the trade), and the level of literacy.
Training existence and/or availability, and cost play also an important role in the decision process about adopting ICT for M/SME. Another barrier for developing countries, e.g., Egypt, is the level literacy. Literacy here covers reading and writing as well as computer literacy.
In general, there is a considerable gap between the available data about the penetration of ICT in M/SMEs and the barriers hampering the adoption of ICT into M/SMEs. This is a worldwide issue and is not related to Egypt alone. Moreover, there is severe lack of data about M/SMEs, to say nothing about ICT adoption, in some areas, such as the Nubaria area.
In 2006, MCIT represented by Egypt ICT Trust Fund has started with the UNDP and the International Development Research Centre (IDRC) a two years pilot research project intends to study the effect of building capacity for Egyptian M/SMEs to leverage Information and Communication Technologies (ICTs) on generate employment and create efficient, better connected and more competitive enterprises.
The project then partnered with Microsoft and ICS in “The Youth & SME Empowerment Programme” which is a 3 years initiative Funded by Microsoft and Implemented by ICS (Integrated Care Society) that was launched in April 2007.
This partnership aimed to maximize the benefits for SMEs through IT skills development and to enable them to play an active role in building the knowledge economy and driving socio-economic development.
The project fosters the understanding of the benefits of ICTs by M/SMEs, while actively promoting their usage. It assists M/SMEs in connecting to new markets, have a multiplier effect where the target group creates momentum and raises the standards for the utilization of ICTs in Egypt. In addition, the project works on creating the enabling environment for M/SMEs to utilize ICTs.
It is important to notice that the role of ICTs extends to creating production synergies and aggregation of products and services to address larger national and regional markets through cooperatives and associations, or even individually.
The sectors of this aggregation can range from tourism to agricultural products, manufacturing, crafts and services. A special focus placed on growth enterprises. These enterprises show a greater business focus that deliver broader and longer term benefits of competitiveness, innovation and employment generation.
Particular care has been exercised to create the capacity and the institutional frameworks necessary to support these activities at all levels. Practically, ICT provides a standardised and uniform communication mechanism, mainly thanks to the Internet, while improving the capacity to carry out critical tasks such as accounting, inventory control, etc. with greater efficiency.
This pilot research project focuses on Micro and Small enterprises of up to 50 employees in six selected geographical areas in Egypt (Damietta, Gharbia, Menia/Assiut, North Asian Governorates, Aswan Governorates and the Nubareia area). Focus will be given on the Agro-business (Food-industry and Garments), Wood-manufacturing and Handicrafts.
Over all goals:
Study the effect of using ICT in leveraging the efficiency and competitiveness of SMEs to enhance their business performance.
Objectives
Build the capacity of NGOs to help in supporting
- Field visits to NGOs.
- Agreeing on the selection
criteria for Trainers of trainers.
- Conducting TOT for the
trainers.
Build capacity of identified SMEs to be more efficient and competitive
- Agreeing Selection
criteria for SMEs.
- Interview with SMEs.
- Conducting a baseline
survey.
- Conducting MS training,
Open Source Training, IT essentials and business
essentials training for SMEs.
- Providing consultancies
in targeted sectors through ICT means.
- Providing marketing
consultancies through ICT means.
Foster the understanding of benefits of ICT4SMEs
- Conducting 15 awareness
raising sessions.
- Conducting 3 competitions
to reward SMEs for creative use of ICT.
- Conducting 3 competitions
to reward SMEs for creative use of ICT.
Establish and maintain a self supporting information society
- Establish online forum
for SMEs.
- Organize 2 awareness
raising sessions by NGOs that are qualified as
business centers.
- Establish online SMEs
network.
- Establish online NGO
network.
- Providing useful content
for SMEs.
Assist SMEs to connect to new markets
- Establish online forum
for SMEs.
- Organize 2 awareness
raising sessions by NGOs that are qualified as
business centers.
- Establish online SMEs
network.
- Providing useful content
for SMEs.
Conduct a study on the effect of using ICT in leveraging the efficiency
- Conducting market
training program to selected SMEs.
- Identifying markets
through the portal that absorb SMEs production
in different fields of SMEs.
- Conduct 5 awareness
sessions for SMEs about clustering.
- Dissemination of
clustering best practices within an audience of
SME owners through the portal.
Methodology
There is a wide range of reasons and barriers why M/SMEs do not make more active use of the ICT, the internet and e-business. Among the most common barriers the assumption that ICT is unsuitability for the type of business; lack of enabling factors (availability of ICT skills, qualified personnel, network infrastructure); high cost factors (costs of ICT equipment and networks, software and re-organisation, and ongoing costs); and security and trust factors (security and reliability of e-commerce systems, uncertainty of payment methods, legal frameworks).
The project addresses this employment through two series of activities. The first is M/SME ICT study of needs, awareness, training and development through NGOs.
The second is assisting M/SMEs in the adoption of ICTs through online goods and services, ICT awarding and dispersing information through bi-directional/mobile devices. Lastly, impact assessment will be done and results from all activities will be concluded.
Achievements
- Accomplishing SMEs
Toolkit Training with a total number of
420 graduates in Five governorates (Aswan
,Assuit, Nobaria , Damietta, Menya)
- Starting the SMEs Toolkit
training in Two new governorates: Fayoum and
Bani-Seuf.
- Implementing a series of
16 Seminar, in the project geographical regions
to raise the awareness on the use of ICT and
help tailor ICT solutions to be more suitable
for M/SMEs within Egypt.
- Conducting three focused
workshops with the scope of transferring the
trainees from the theoretical mastery of ICT
applications to practice such programmes in
managing their project.
- Stimulating the
M/SMEs to adopt the new ICT technologies in
business through organizing two innovative
competitions ,resulted so far in 11
cases completely succeeded in managing their
small projects through the using the ICT in
their project professionally.
- Establish an Electronic website www.ayadina.net that
provides integrated services for the SMEs owners
,as a primary step to create the enabling
environment for M/SMEs to adopt ICTs within
their business.
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