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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................ 4
Business environment ................................................................................................................................. 4
Network infrastructure ................................................................................................................................ 4
Trust infrastructure...................................................................................................................................... 5
Digital products and information services................................................................................................... 5
Skill upgrading ............................................................................................................................................ 5
Intangible investments and assets ............................................................................................................... 5
Information.................................................................................................................................................. 5
Government on-line..................................................................................................................................... 6
Competition................................................................................................................................................. 6
Intellectual property .................................................................................................................................... 7
INTRODUCTION .......................................................................................................................................... 8
I.
BENEFITS AND USE BY SMALL BUSINESSES ........................................................................... 9
Benefits of ICT and Internet use ................................................................................................................. 9
ICT adoption and firm performance.......................................................................................................... 11
Use of ICT and Internet among SMEs ...................................................................................................... 11
Adoption of Internet e-commerce by SMEs.............................................................................................. 13
Towards e-business integration................................................................................................................. 18
II.
BARRIERS TO USE ......................................................................................................................... 19
Unsuitability for business.......................................................................................................................... 19
Enabling factors: internal ICT and managerial knowledge ....................................................................... 20
Cost of developing and maintaining e-business systems .......................................................................... 21
Network infrastructure issues: access and interoperability ....................................................................... 22
Building security and trust ........................................................................................................................ 26
Legal uncertainties .................................................................................................................................... 28
E-business adoption challenges: lessons from EBIP................................................................................. 29
III.
ICT AND E-BUSINESS USE BY SECTOR..................................................................................... 31
Tourism ..................................................................................................................................................... 31
Retail ......................................................................................................................................................... 32
Textiles...................................................................................................................................................... 33
Automobiles .............................................................................................................................................. 34
Summary ................................................................................................................................................... 34
IV.
POLICY IMPLICATIONS ................................................................................................................ 35
General approaches ................................................................................................................................... 35
General framework policies for SMEs...................................................................................................... 36
Specific policies for SMEs........................................................................................................................ 39
Summary ................................................................................................................................................... 43
REFERENCES ............................................................................................................................................. 44
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