3. Marco teórico
3.1.1 Normatividad aplicable al registro dependiendo del territorio de origen de la
Currently non-ICT users can be found in both formal and non-formal sectors. Non- formal sector enterprises did not form part of first phase of fieldwork, and will be
included in the 2nd phase of the project. Therefore, data has not yet been produced
concerning the vast majority of non-ICT users. However, as previous studies have shown this type of enterprise constitutes the majority of enterprises within the SMME sector as a whole, and creates livelihoods for the largest number of people. In Botswana, they are predominantly rural based although there are significant and growing numbers of urban-based non-formal micro/small enterprises.
Four respondents in the survey were classified as non-ICT users. They were all small- scale local manufacturers with annual turnovers of less than 12,000 Pula, and all citizen owned. They all expressed critical needs for information concerning additional finance and improving financial management of their businesses. When asked to specify the biggest constraint that confronted their business a typical response was …. “ Mismanagement: I can see I am not good at management, more especially financially. So I need more help and will need to have a partner for I need his/her advice in running the business.”
It is too early in this study to conclude what role ICTs can play in assisting such businesses. The IFS Study summarised by Lisenda (1994) provided evidence that suggests little or no scope for the application of ICT-based systems in a business support role. Micro-enterprises (1-3 employees) were shown to make up 75% of the estimated 50,000 enterprises in the overall SMME sector. Within the micro-enterprise sector 80% of enterprises kept no internal records – formostly financial records (e.g., cash book, expense ledger, etc) but also other records of transactions such as invoices, receipts, etc. This tends to indicate that the information handling skills, and the manual recording systems, of such enterprises are not yet sufficiently developed for the internal application of ICTs to be seriously considered.
It is also apparent that such enterprises lack the three basic requirements of access, affordability and skills that would be required to take advantage of any services or appropriate applications provided through emerging ICTs.
• Lack of Access. Small business users will need reliable access to the available infrastructure from their localities. The majority of SMMEs are likely to have no access, or restricted/unreliable access to communication services. Evidence relating to the geographic location of SMMEs shows that the majority (66%) are located in rural areas and at present do not have reliable access to communication networks.
• Lack of Affordability. The technology will need to be affordable, not just in terms of initial capital outlays for hardware, software, installation and peripherals, but also in terms of the ‘total cost of ownership’. Total costs will include consumables such as printer inks, software updates and maintenance, training requirements for business owners and employees to keep abreast of emerging technologies or new business requirements, and network access charges. Most SMMEs, however, are too small to warrant any investment in computer-based ICTs, with the majority (69%) of micro-enterprises generating average annual turnovers of 6,919 Pula. (US$ 1,551) (Lisenda, 1997)
• Lack of Knowledge and Skills. Users will also need to have sufficient education and training in order to operate computer-based systems effectively, and to be able to adapt them to the real needs of their businesses. Additionally, and more importantly, users will need to have a sufficient level of literacy in order that they are able to access, understand and process the information that is being provided in a way that will benefit their business. The business owners of SMMEs largely lack literacy, education and training, particularly those in the micro/small and informal sectors. In 1994, 88% of all business owners surveyed in the IFS study had primary or no education, whilst only 1% had some form of tertiary education. .
Such businesses, however, may benefit from greater access to communication facilities, such as through normal telephone services, facsimile, mobile communications and other value added telecommunication services. A large number of donor and enterprise development organisations are promoting the expansion of rural communication services as a primary tool of economic development. For example, the Micro-enterprise Best Practices Project, sponsored by USAID, sees a generally positive role for emerging information and communications services.
“There is growing demand among MSEs for basic telecommunication services such as local and long-distance phone and fax services. As new telecommunications services become more readily available and affordable. Micro and small businesses of various types have emerged as some of the more avid customers. The availability of basic communication services makes it possible for businesses of all sizes to operate more efficiently, reduce their business transaction costs, expand their networks of business and personal contacts, access new markets, obtain better price information, and generally become more competitive.”43
In a number of developing countries a range of experiments have been conducted which have attempted to bring communal telecommunication services into remote areas. Usually described as phone shops or rural telecentres, all initiatives have
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endeavoured to create access and provide basic communication and information gathering skills at a price which is affordable, not only to micro/small enterprises located predominantly in rural areas, but also to the general population.
However, for the vast majority of business owners, there may exist a range of additional socio-cultural barriers that will inhibit their ability to interact, not only with the technology, but also to absorb information which has been generated from within very different socio-cultural environments. Evidence from the preceding chapters demonstrates that the vast majority of SMMEs service immediate local markets and rely on locally generated information and locally accumulated market knowledge. In order to operate successfully they need to gain information from within their own socio-economic/cultural environments. This enables a greater amount of trust, and hence confidence and security in the information sources and the information channels used.
These barriers have been summarised as: (Heeks, 1999)
• Lack of source proximity. The sources of most available digitised information will be extremely distant, both geographically and culturally. It may be presented in ways that reflect the environments and the values of its creators, and may lack any embedded characteristics of direct relevance to users in very different socio- cultural settings.
• Lack of trust and security. The evidence shows that business owners place greater value on information received through personal contact, and are able to build up greater trust in personalised information channels and sources. Conversely, information received in a digitised form is generally non-personalised and distant, and lacks the security necessary when making decisions that may involve an element of risk.
• Lack of knowledge. The knowledge of most recipients will be restricted to their local environment. In order for business owners to access, to assess the value, to select and to process external information it is necessary to have previous knowledge about the contexts and environments from within which the information has been generated.
Significant positive impacts associated with enhanced telecommunications and wider access to information, for non-formal sector enterprises, have yet to be proven, and in consequence should be examined critically. There are likely to be substantial long-term socio-cultural, literacy and knowledge barriers that would need to be overcome before most business owners could effectively utilise both the technology and the available information.
The second phase of this research project, which will be concentrating in more detail on the non-formal sector, will aim to provide some conclusions concerning the applicability of such remote area services in the case of Botswana.
Extended Summary and Conclusions
This is a summary of research that examines the role of information and communication technologies (ICTs) in the development of small, medium and micro enterprises (SMMEs) within less developed countries. (LDCs) The data collected during the first phase of the research project is drawn from fieldwork undertaken in Botswana during the first half of 1999. The enclosed report presents the principal findings produced from the analysis of data at the interim stage of the project. The conclusions reached, therefore, are both tentative and partial. Whilst it is hoped that the report will prove to be informative to its recipients, it should also be emphasised that final results and recommendations will only be made available upon publication of the final report.Background
The role that emerging ICTs can play in closing knowledge gaps and solving information problems for SMMEs in Botswana has yet to be clearly defined. The extension of telecommunication services has, thus far, favoured large enterprises and the corporate sector located predominantly in urban areas. The impact of enhanced communications on the SMME sector has been extremely uneven. More sophisticated ‘modern sector’ enterprises have been able to take advantage new technological opportunities, such as e-mail, Internet access and mobile communications, which have seen rapid expansion within larger urban centres. However, most SMMEs operate in traditional or ‘backward sectors’ of the economy often in remote locations, and lack access to the skills, finance and infrastructure necessary for effective utilisation. The wider enterprise sector in Botswana has remained largely untouched by rapid changes in technology and there appears to be an increasing polarisation in the ability of enterprises to participate in the ‘global information revolution.’ Many international organisations and donor agencies have recognised rising inequalities of access, and a large number of initiatives have been undertaken to re-dress this growing technological imbalance. The cost effectiveness and the usability of such technology-based solutions to the problems faced by SMMEs will be critically examined during the course of this project, as will the appropriateness of emerging ICTs as tools for poverty alleviation through local economic development.
Research Objectives
During the initial research phase the primary objectives for data collection were as follows:
• Describe the ‘generic’ information needs of SMMEs in Botswana, and assess
where the provision of externally generated information is likely to enhance the prospects for business survival and growth.
• Identify where information needs of SMMEs are currently not being met, and to
• Map current information systems, which are common to SMMEs, for the acquisition, processing, storage and utilisation of information.
• Understand why entrepreneurs use current information systems, and to assess the
quality of information that is currently being provided.
• Establish the potential for information and communication technologies (ICTs) to
bridge the gap between information needs and current provision.
Theoretical Framework
The theoretical model emphasises the importance of effective interaction between the enterprise and its market environment. It is predominantly the linkages, relationships and contacts that an enterprise establishes with customers, suppliers, collaborators and competitors that will determine the sources, channels and content of externally generated information. The ability to access, process and use market information, in order to inform decision making and action, will largely determine the capacity of the enterprise to adapt, survive or grow within a competitive market environment.
The ‘information environment’ within LDCs differs considerably from developed countries. Market and non-market mechanisms for the transmission of information in LDCs are less sophisticated, barriers to the free-flow of information are higher, and resource inequalities in the provision of information more extensive. Local business networks are less developed and more fragmented, and entrepreneurs are likely to be less educated and less skilled in acquiring, processing and using business information. Evidence shows that information exchange, particularly amongst the bulk of small and micro enterprises, tends to rely on informal practices, utilising networks of personal contacts in the local area from which unstructured, unrecorded and subjective information of variable quality is derived.
The provision of information is only likely to be beneficial when it enhances knowledge, and is put to some effective use to ensure the survival/growth of an
enterprise. A potential role for ICTs in this process should be placed in the context of the overall information needs of enterprises, and can be considered by using the
following four main decision criteria.
• Assessing the costs and benefits associated with of formal and informal information practices.
• Prioritising ICTs in overall business development.
• Assessing how ICTs can be successfully and cost effectively applied.
The Case Study of Botswana
The level of interest in SMME development in Botswana has been growing recently in the light of the publication of a Task Force Report on SMMEs and the subsequent approval of a new SMME Policy in December 1998. The primary aim of the policy is to encourage further expansion of the SMME sector, creating new sustainable employment opportunities for citizens. It is also hoped that SMME growth will provide a new spur to economic development by providing the means to diffuse and adapt new technologies in the wider economy, leading to the empowerment of increasing numbers of citizen entrepreneurs.
The data collected during the first phase of this project has concentrated on the formal sector, including small and medium enterprises, which have official registration. Small enterprises make up the vast majority of registered enterprises. Small enterprises, however, tend to be the most insecure. The Task Force Report (1998) estimated business failure rates of approximately 80-85% after 5 years of trading. It is also estimated only a small proportion (1-2%) ever succeed in expanding their businesses. Historically, the participation rates of citizens in business have been low and the enterprise sector has faced a wide range of constraints that have inhibited levels of enterprise start up, survival and growth.
• Lack of entrepreneurial aptitudes and no tradition of family-centred small business
ownership in the formal sector.
• Insufficient basic education and lack of business skills training
• Lack of incentives and opportunities due to negative market-related factors.
• Lack of capital and finance, particularly in the micro business sector and amongst
small enterprises not eligible for government support.
• Lack of access to technology and technical expertise.
• Insufficient land and premises.
• Lack of development of business linkages, such as through sub-contracting.
• Weaknesses in institutional support.
Each of these constraints is dealt with in detail in the main report. Related to each of these constraining factors are a number of information related issues. Evidence shows, for example, that in the case of access to finance and institutional support, there are considerable problems related to lack of information and inadequate knowledge. However, the ‘degree’ to which information problems and knowledge gaps contribute to overall business constraints is open to question, and it hoped that a clearer picture will emerge upon completion of this research project.
Research Methods and Sampling
A questionnaire was used to gain factual data and structured responses from a widespread population of registered formal sector enterprises. A series of semi- structured interviews were carried out with an initial sample of 20 enterprises. Data collection techniques were designed to elicit detailed responses in relation to the
information needs of enterprises, focussing on the content, sources and channels of different categories of business information.
The sample was drawn from the total population of formal-sector enterprises in Botswana, as recorded in the Botswana Registry of Establishments (CSO, 1997). The sample was made up of 480 SMMEs covering non-exporting manufacturers, exporting manufacturers and service-based enterprises. The questionnaire survey produced an initial response rate of 14.12%. Further details relating to research methods, sampling and non-response bias can be found in the main body of the report.
Response Profile
77% of respondents were male and 23% female. The age range of respondents showed the majority (62%) being 41 years or over. 57% of enterprises were citizen-owned, 30% were foreign-owned, 10% had joint ownership and only 3% were foreign-owned subsidiaries. The sample response indicates a high proportion of educated
entrepreneurs. The proportion with secondary qualifications and above is 88%, which compares with 66% reported by Briscoe (1995). This indicates a non-response bias in favour of educated entrepreneurs, which might be expected from a postal
questionnaire.
50% of responses were from small enterprises (4-29 Emp), 26% from very small enterprises (1-4 Employees), and 24% from medium enterprises. (30-99 Emp) When compared with the distribution of the total population of formal sector SMMEs in Botswana, this indicates a small bias in favour of medium-scale enterprises, and an under representation of very small enterprises in the response.
The results show that formal sector SMMEs exhibit a wide range of customer
groupings, including government purchasing, individual consumers, export customers, (including tourists) sub-contracting from larger firms, re-sale agents, wholesalers and other SMMEs. This contrasts with the results of research carried out amongst MSEs (predominantly in the non-formal sector) which show almost exclusive reliance on final consumers as end-use customers. (Daniels and Fisseha, 1992)