Ict, e-business and Small and Medium Enterprises

E-government 

E-government, the provision of government services on line, has high priority in many OECD 

countries. Such on-line activities offer benefits for governments, including greater efficiency and 

transparency and expanded provision of information and services (OECD, 2002b). Examples include the 

provision of government services on-line, the simplification of administrative tasks such as value-added 

tax administration and business tax lodgement and collection. These on-line activities can also have 

significant effects on small businesses as they need to ensure access to government services and obligatory 

requirements and interoperability with these services, affecting their choice of systems and software. 

Technology neutrality and the interoperability of a variety of network infrastructures and software is 

essential when initiating e-government projects.  

In addition, e-government activities have demonstration effects for SMEs by providing them with 

models for service delivery and by spreading awareness of the potential for on-line delivery and 

interaction. They expand infrastructure provision and use (e.g. broadband) and contribute to promoting 

trust and security in on-line transactions, for example by introducing and demonstrating authentication and 

digital signature systems. 

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E-procurement, whose main purpose is to rationalise government expenditure, can also provide 

SMEs with new incentives to adopt Internet and e-commerce in order to enter new markets. Governments 

establish new e-market models through e-procurement initiatives and SMEs may benefit from more 

transparent and more competitive market conditions.