Most governments have policies to encourage the growth of local small- and mediumenterprises (SMEs) because they can help alleviate poverty by increasing income levels and creating jobs. As the global economy becomes increasingly reliant on information communication technologies (ICTs) to receive, process, and send out information, SMEs in developing countries should not be left behind. Otherwise, they will lose out on opportunities to integrate into the global supply chain, bid for outsourcing businesses, and increase productivity.
This APDIP e-Note highlights three main ways ICTs can benefit SMEs: (1) increase productivity in the production process; (2) increase efficiency of internal business operations; and (3) connect SMEs more easily and cheaply to external contacts, whether locally or globally.
Despite the obvious and concrete benefits that ICTs can bring to SMEs, SMEs in most developing countries have been slow to adopt it. At the same time, most governments have not embedded ICTs into SME policy. This APDIP e-Note introduces examples of how Asian governments have launched initiatives to encourage and enable SMEs to use ICTs.
Hong Kong targets training at different sectors; Japan provides tax rebates for SMEs using ICTs; Republic of Korea provides a web forum for SMEs to showcase their products to an international market; Philippines is working to reduce the cost of international phone calls by deregulating Voice-over-Internet Protocol; and Singapore subsidizes computer training for SMEs employees and provides the foundation for developing secure e-payment services.
Source:APDIP.
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