Ict, e-business and Small and Medium Enterprises

General approaches 

Commercial considerations and potential returns drive firms to adopt new strategies and change 

existing ones. Not all SMEs will “catch up” with large firms beyond a certain level of connectivity (PC, 

Internet access, on-line marketing). Firms will stay with traditional business processes if Internet 

commerce is unsuitable for their business, or if expected benefits are outweighed by costs. 

SMEs are heterogeneous, undertaking a wide range of activities in different positions along 

sector and product value chains. Some are as sophisticated users of the Internet and e-business as larger 

firms, while others make no use at all. Although policy differentiation and targeting is required to allow for 

such differences, governments cannot tailor policy to meet the requirements of individual small firms. 

However they can focus on policy principles and delivery mechanisms that take diversity into account and 

maximise effectiveness. Above all, governments can attempt to identify and target smaller enterprises that 

are potential or low-level users that could further benefit from more extensive use. 

Third, most e-commerce takes place between businesses. The largest benefits for the Internet-

using firms may derive from generating internal process efficiencies and participating in value-added 

networks, whereas in many countries, the initial policy focus has been on encouraging small firms to set up 

a Web site and reach out for on-line final consumers, and policy is increasingly moving towards market-

based approaches.  

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