Module 1: Introduction to Internet Use for Business Development

Summary: module 1 in a nutshell

• Four forces continue to shape the global ICT sector:

  • Technological developments, particularly the establishment of the Internet Protocol (IP);

  • Convergenceof telecommunications, broadcasting and multimedia;

  • Globalization,which allows the world to be treated as one market,regardless of national boundaries; and

  • The emergence of broadband, which provides increasingly faster data rates and “always on” connectivity to the Internet.

• ICT effectively contributes to the achievement of the Millennium Development Goals, particularly those related to income, poverty reduction, education, health, the environment and gender equality.

• ICT benefits SMEs in various ways, such as:

  • Increasing productivity in the production process;

  • Enhancing and increasing the efficiency of internal business operations; and

  • Connecting SMEs more easily and cheaply to external contacts in the local and global markets.

• Barriersto SME access and use of ICTs include:

  • Inability of SMEs to see the relevance or suitability of ICT in their business;

  • Lack of internal ICT and managerial knowledge;

  • Costs of developing and maintaining e-business systems;

  • Lack of access to the network infrastructure;

  • Difficulties in building trust and enhancing security; and

  • Legal and regulatory uncertainties.

• The key role of governments in encouraging ICT use by SMEs is to create “an enabling environment,” which means, “addressing in a holistic manner, the various policy, legal, market and social considerations that interact both at domestic and global levels to create fertile conditions for ICT-led growth”. Key policy directions in this respect include:

• Fixing the business environment to make it easy to do business;

  • Promoting the development of the network infrastructure, and encouraging broadband deployment;

  • Enhancing trust in the regulatory system;

  • Facilitating content development;

  • Supporting and promoting human capital development and skills enhancement; Increasing awareness of the benefits and use of ICT, especially by small businesses;

  • e-Governance; and

  • Systematic and useful data collection on ICT as a tool for informed policymaking.

Additional information on internet use for business development

Asia-Pacific Development Information Programme (APDIP).

Provides various resources on e-governance, ICT4D, ICT for SMEs, open source software, policy notes on ICT for SMEs: http://www.apdip.net/

BIZPRO

USAID-sponsored economic development project website with useful links related to SME training (including web-based training). http://www.bizpro.org.ua

ConvergenceInternational.

Includes policy briefs, papers, researches, and discussions on convergence of information. http://www.convergence.org

Digital Opportunity Channel.

Source of success stories, news related to e-commerce and ICT for development. http://www.digitalopportunity.org/

Europa Eurostat.

Provides key statistics on SME development in developed countries. http://www.epp.eurostat.ec.europa.eu

IFC-WB SME toolkit.

Developed by IFC-WB, which offers free software, business forums, training, and more to help small businesses in emerging markets grow and succeed. http://www.smetoolkit.org/

Infocomm Competency Programme.

Details on the policy and implementation of the Infocomm programme. http://www.ida.gov.sg/

International Telecommunications Union.

Provides policy notes, articles, statistics and country reviews on telecommunications, convergence, and VoIP. http://www.itu.org

Korean Marketplace Web Site

Provides information and online trading on SME products from the Republic of Korea.http://www.gobizkorea.com

RRU World Bank.

Provides resources on SME financing, policies, guidelines, case studies, surveys, toolkits, networking and linkages. http://rru.worldbank.org/Themes/SmallMediumEnterprises

SMEs in Europe.

Provides assistance to SMEs in Europe, frameworks, statistics, best practices and approaches in SME development. http://sme.cordis.lu/home/index.cfm

Technonet Asia.

A cooperative network of development support institutions, aiming to enhance the quality and competitiveness of the small and medium-sized enterprises in its member countries through information, technology transfer and human resources development. http://www.idrc.ca

UNDP

Host of articles, papers, statistics and policy recommendations on the challenges of globalization, ICT and good governance. http://www.undp.org.lb/programme/governance/

UNDP Sustainable Development Networking Programme.

Includes discussions and statistics of ICT for development. http://sdnhq.undp.org/it4dev/

UNIDO SME web site.

A portal dedicated in helping government and the private sector to cooperate in the design and implementation of programmes to promote the organisation and development of clusters and networks of SMEs. http://www.unido.org/doc

United Nations Information and Communications Technologies Task Force.

Provides information of the implementation of the Millennium Development Goals, with a focus on ICT. http://www.unicttaskforce.org