Ict, e-business and Small and Medium Enterprises

IV.  

POLICY IMPLICATIONS 

SMEs have been slower than larger firms to adopt Internet and e-business strategies despite the 

potential benefits. All OECD countries have introduced programmes to speed SME e-business and Internet 

development. However, the recent features of e-business and Internet use will also structure policy. First 

and foremost, most e-commerce is B2B rather than B2C, which means government policy needs to focus 

on value chain participation. Next, most Internet e-commerce transactions are domestic rather than 

cross-border. Finally, use varies widely among sectors, and these structural differences need to be taken 

into consideration. 

Barriers to uptake vary depending on transactions (B2B or B2C), sectors and countries. They also 

change over time and vary along the e-commerce adoption ladder. Barriers such as lack of technological 

capabilities and ability to identify business opportunities are greater for SMEs than larger firms. In many 

countries business and sector organisations are particularly important intermediaries for the diffusion of e-

business strategies, awareness raising and consultation services, and management education and training. 

Governments have used many policies to encourage the diffusion of e-business and Internet use, 

from fostering technological diffusion to creating a favourable business environment with fair and 

predictable rules. These are drawn from both general enterprise policy and from ICT policies. The overall 

policy framework is no different for SMEs than for larger firms except for some areas such as competition 

where there are differences in impacts between small and large firms. In addition, the policy agenda has 

also been evolving, with the focus shifting from connectivity and building simple web presence, to more 

integrated use of ICT within the business and along the value chain as firms move from readiness to 

adoption to reaping benefits from the adoption of ICTs and e-business. Policy is increasingly based on 

market-based technology-neutral approaches to the diffusion of ICTs and e-business strategies.