Ict, e-business and Small and Medium Enterprises

Specific policies for SMEs 

Governments have implemented various e-business and Internet programmes focused on SMEs. 

Three new directions are emerging in such policies. These are in addition to initiatives that aim at 

facilitating the participation of SMEs in e-business value chains rather than simply encouraging them to 

adopt e-commerce. First, the policy focus needs to shift to the wider concept of e-business (which includes 

a range of internal and external activities). These encompass R&D, planning, marketing and sales, 

invoicing, supply chain management, inventory, logistics and delivery, after-sales services, and other 

crucial business functions such as knowledge management, and finance. Second is a greater accent on tools 

that emphasise commercial imperatives, and focus on self-assessment of opportunities, benefits and costs 

of e-business. Third is a need to co-ordinate and organise such policies with wider business framework 

policies to enhance their effectiveness.  

Although businesses are still positive about e-business as an enabler to improving efficiency, 

reducing costs, the business case has to be made. However, many SMEs probably lack the time, knowledge 

and skills to effectively make that case. How to overcome this issue in realistic ways has been another 

challenge for governments.