SMES and business information provision strategies: analytical perspective.
Library Philosophy and Practice › Nbr. 2011, January 2011
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SMES and business information provision strategies: analytical perspective.
Introduction
The development of the SMEs has long been regarded as crucial for the achievement of broader development objectives, including poverty alleviation, economic development and the promotion of more democratic and pluralist societies (Henriques n.d). It is imperative that business information--as an ingredient for business transactions and prospects--be, effectively, provided to the SMEs. This paper, thus, provides an analysis of the literature on the SMEs characteristics, business information provision and the dynamics of business development services. The main aim is to provide a better understanding of some of the principles and practices that can help in shaping the design of strategic measures to promote information access by SMEs. SMEs SMEs have been defined in various ways, but the most commonly used criterion is the number of employees in the enterprise (Kayanula and Quartey 2000). Definitions in many countries lack uniformity and reflect the relative development of the respective economies. However, the United Nations Conference on Trade and Development (UNCTAD) classifies firms employing 5 to 500 persons as SMEs (Neelamegham 1992:17). The Government of Uganda classifies SMEs as business firms employing 5-50 people [small scale] and 51-500 people [medium scale] (Kasekende and Opondo 2003; Schiffer and Wedder 2001:13; Uganda Bureau of Statistics 2003; Okello-Obura ... et al 2008). Whatever definition it takes, SMEs are important to socio-economic transformation and it is estimated that SMEs employ 22% of the adult population in developing countries (Daniels and Ngwira 1993; Daniels and Fisseha 1992; Fisseha and McPherson 1991; Robson and Gallagher 1995). Characteristics of the SMEs information user groups Apart from the number of employees, there are other key factors that characterise the SMEs and these are related to management and the nature of operations. The SMEs may be managed by their owners who are often assisted by family members (Okello-Obura ... et al 2009). In this regard, the decision-making system is quite flexible, informal and dependent on the personal drive of one or more of the executives. By their very nature of operation, the SMEs have a narrow range of products/services and a relatively simple and unsophisticated management structure with a narrow tolerance range of risk. Individual SMEs experience difficulties in achieving economies of scale in the purchase of inputs and are often unable to take advantage of market opportunities that require large production quantities, homogenous standards and regular supply. Above all, SMEs are confronted with situations where dec...See the full content of this document
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