THE APPLICATION OF INFORMATION AND COMMUNICATION

Date
2011-06-02
Authors
Nkuna, D. Robert
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The research seeks to understand how small medium and micro enterprises in the Vhembe District use information and communication technology (ICT) in local economic development (LED). The study was conducted against the background of national policy debates about the potential of ICT to promote local economic development which tends to focus more on evaluating government sponsored initiatives than on the actual impact of ICT in local economies. The findings indicate that different SMMEs are introducing ICT in their businesses with varying levels of awareness, access, uses, benefits and contribution to LED. The level of awareness, access, use, benefits and the experience of SMMEs in the contribution of ICT in local economic development can be understood in terms of the different sizes, sectoral dynamics, level of sophistication and location theory. The findings also indicate that some of the SMMEs have experienced LED in the form of new jobs being created with the introduction of new technologies. Furthermore, it emerges from the experience of some of the SMMEs that the use of ICT results in economic growth (increases revenue) which enable SMMEs to contribute to the development of local infrastructure and the payment/purchase of local services and goods. In other words, the findings suggest that the introduction of new technologies directly leads to LED, while the use of the technologies results in economic growth, which enable the SMMEs to further contribute to local economic development. Although other SMMEs have not yet effectively introduced ICT, they believe that from the experience of others, the introduction and the use of ICT could lead to local economic growth and economic development. While some of the SMMEs have reaped results from the use of ICT, others are yet to experience the benefits of using ICT. A set of recommendations is presented focusing on mechanisms to promote the use of ICT by SMMEs in the Vhembe District
Description
MM - P&DM
Keywords
Information technology, Economic development
Citation
Collections