THE APPLICATION OF INFORMATION AND COMMUNICATION
Date
2011-06-02
Authors
Nkuna, D. Robert
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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