Module 1: Introduction to Internet Use for Business Development

Broad Policy Issues that Governments Should Consider to Promote the Use of and Access to the Internet for Business Development in General, and for SMEs in Particular

I. Introduction

The Internet has revolutionized, and continues to profoundly affect, the way one does business. It is now a critical (if not the main) tool and venue for conducting commerce. As a tool, it allows buyers and sellers nearly unlimited access to information, goods and services. As a venue, it does away with the limits of geography, the time zones and, in some cases, the need for a physical office. With its tremendous potential, it has become commonplace for businesses and consumers to utilize the Internet for a variety of transactions ranging from emails to actual online purchases.

From a policy point of view, it may seem best to let the Internet and the conduct of its users be left to develop and evolve on its own. In many respects, it is best to rely and trust in the market to lead in the development of the information and communications technology (ICT) sector in general and e-commerce in particular.

Leaving everything to the market, however, is likely to lead to failure. Markets can overlook the needs of remote and unprofitable areas that would otherwise benefit greatly from access to the Internet. Moreover, sound government policies can create the necessary environment and incentives to encourage small and medium-sized enterprises (SMEs) to take advantage of the Internet to create business opportunities.

Further, the huge potential for e-business has attracted unscrupulous individuals who wish to exploit the Internet for their own selfish interests. This type of conduct makes users vulnerable to a host of possible attacks that compromise the confidentiality, integrity and availability of information that they exchange through the Internet. As a result of such illicit activities, people tend to lose trust on the security of doing business in the Internet and thus, forego its huge potential for business, among other socially desirable uses. It is therefore necessary that security measures be set in place to thwart would be attackers who make Internet use unsafe and insecure. Along this line, it becomes of paramount import to establish mechanisms about the standards, policies, rules, and enforcement and dispute resolution procedures to apply to global inter-networking activities in order to make the Internet free, fair, reliable, transparent, and accessible to all.

Simply put, e-commerce can never prosper unless a secured environment for doing business exists. But this can only happen if the correct policies for securing the Internet are put in place.

This set of training modules is designed to serve as a policymaking reference on Internet Use for Business Development,principally for middle- to senior-level Internet policymakers and implementers of public policy issues of Internet governance. More particularly, it is intended as an introductory guide to various issues and legislative/policy options that developing countries should consider as they put into place the policies and rules that will encourage SMEs¹ to take advantage of the Internet to create business opportunities.

The first module provides a comprehensive introduction to the development of the Internet as it relates particularly to SMEs. It outlines the relevance of ICTs to SMEs in terms of opportunities and barriers thereto, and identifies specific policy steps and issues that ought to be considered by countries – particularly developing nations – as they strive to develop legal and regulatory frameworks that will facilitate and encourage access to and use of ICT by SMEs.

The second module deals with key legal and policy topics relating to e-commerce, and the issues that need to be considered to encourage SMEs to engage in e-commerce.

The final two modules focus on other issues that need to be considered in order to truly establish an enabling environment for Internet Use for Business Development. Particular focus is given to cyber crime and security in the third module. Overviews of other critical issues, including consumer protection, intellectual property rights, data protection and privacy, as well as the need for international cooperation and harmonization, are provided in the final chapter.

The materials included here, as well as the issues contained herein, are not exhaustive. This is merely an introduction, and it is hoped, nonetheless, that they convey a sense of need – and realistic possibility – for a holistic approach to policymaking in this area.

This document does not purport to provide ready answers. Rather, it is intended to pose questions and issues for the reader in the hope that these will provoke thoughtful reflections. It should be noted that there is no one set of policies or rules that will apply to each and every jurisdiction. Therefore, it is hoped that this document will be a useful reference on ICTs for all stakeholders, not in the sense of a map or encyclopaedia that provides easy answers, but rather as a useful tool for readers to think through the issues, learn about best practices and models, and then, ultimately, reach conclusions on their own.

II. A brief history of why we are where we are

Before going into the main subject of this Module, i.e., the use of the Internet for Business Development, particularly by SMEs, it would be useful to consider and revisit the trends and factors that converged to make the ICT sector the critical driver of the global economy that it, undeniably, is today.

The global ICT sector has been, and continues to be, shaped by a number of powerful interrelated forces. Chief among these forces are:

• Technological developments;

• Convergence of telecommunications, broadcasting and multimedia;

• Globalization and internationalization of markets; and

• Emergence of broadband services.

(a) Technology: The key technological development which has occurred is the emergence of the digital packet switched network architecture, which effectively replaced traditional circuit switched networks. This dramatically reduced cost, improved quality and enabled the development of a wide range of innovative applications.

The establishment of the Internet Protocol (IP) as the global open network service standard, in particular, facilitated the blending of different services (e.g., telephony, data, interactive video) via one infrastructure.

The delivery of services over IP is now a leading driver of change and innovation, the result of which is that new participants in the ICT sector now exclusively build IP networks.

(b) Convergence: The deployment of digital packet switched technology also fuelled the convergence of telecommunications, broadcasting and multimedia. Previously, each sector was treated as distinct, and therefore regulated separately.

As digital technology emerged with increasingly open interfaces between different applications, the distinctions between each sector have rapidly eroded. Cable companies can now provide internet telephony while telecommunications companies can provide internet services. Newspapers can now also be read online.

In the digital world, the “network” is not confined to specific applications. The digital network is a ubiquitous platform, capable of transporting all digital data with equal ease. The network is “blind” to distinctions between voice, computer data, video, or transactional data. All are simply digital data.

The Internet is virtually substitutable for all forms of existing media and is a competitive threat to every provider of telecommunications, broadcasting, operating software and data communications. As a result of convergence, different content services (voice, radio, television, etc.) can now be delivered by practically anyone to anyone anywhere in the world.

(c) Globalization: Globalization is the process in which the world is treated as one market without regard to national boundaries. Over the last decade, globalization and ICT have gone hand in hand – the rapid spread of the use of ICT is both a result and a driver of globalization.

ICT is a key enabler of globalization. The specialization of production through advances in manufacturing techniques has lowered costs and shortened economic distances. In addition, the systematic rationalization of procedures and documentation and the wider and easier dissemination of market information have broken down the factors that have made markets distinct.

At the same time, globalization has fuelled the demand for ICT. As new markets open up, buyers and sellers have turned to ICT for new financial instruments and services and faster and cheaper ways to facilitate cross-border transactions.

(d) Broadband: The emergence of the Internet has also seen the emergence of new, high-bandwidth networks and new network paradigms that are rapidly displacing the traditional, narrowband public switched telephone network (PSTN) model. Broadband services enable high-capacity communications services characterized by both high data transmission speeds and high volumes of data.

Broadband services offer significantly faster data rates and “always on” connection to the Internet.

The growth of high-speed broadband infrastructure, either wired or wireless, coupled with technological advancement in equipment, by the global proliferation of small mobile devices and other intelligent terminals that can be used to communicate and gather converged data, voice and video information and services anywhere anytime, make the lives of people more convenient. These forces have resulted in spectacular developments in nearly all fields of human endeavour, creating opportunities for countries, corporations and individuals to be creative, to flourish, and to lead even more meaningful and productive lives.

What opportunities would arise from the introduction or use of ICT for:

• Your government?

• A small company in your country?

• An ordinary citizen?

• A student?

A. ICT 4 What?

While ICTs are not a panacea for all development problems, they offer enormous opportunities to narrow social and economic inequalities, and thus help achieve broader development goals, such as the Millennium Development Goals set by the United Nations.

ICTs effectively contribute to the achievement of the goals, particularly those related to income, poverty reduction, education, health, environment and gender equity by:

• Creating economic opportunities and contributing to poverty reduction;

• Managing the processes of providing basic services (for example, health care and education) at lower cost and with greater coverage;

• Facilitating access to information and the involvement of stakeholders through greater transparency and support for networking at every stage;

• Enhancing the capacity to measure, monitor and report progress on the goals and to strategize.

Policymaking related to ICTs will vary depending on the needs, goals and socio-political and economic context that a country finds itself in.

The view of industrialized countries is that ICTs can enable the economy and all sectors of human activity.

• The United States of America for example, is a prime example of how the adoption of ICT can lead to increases in efficiency that, in turn, translate into increased rates of economic growth and GDP.

• Canada has an ambitious plan called “Connecting Canadians” which envisions and plans to make Canada the most connected country in the world and to make Canada a world leader in developing and using an advanced information infrastructure to achieve its social and economic goals in the knowledge economy.

Newly industrialized countries of the Asia Pacific have found that ICTs are a key to an economy’s competitiveness, people’s standards of living and a country’s ability to fully participate in the global economy.

• Malaysia, for example, is committed to using ICTs to achieve its development objectives. It plans to invest more than US$2 billion over the next decade to become the multimedia hub of Southeast Asia.

• China is also moving to e-enable the country by connecting all major centres with fibre optic cabling.

• India has emerged as a powerhouse in the e-services sector.

From the point of view of small island developing states, ICT deployment is focused more on overcoming isolation, small population sizes, small markets and vast distances that separate these countries from each other and the rest of the world.

• It should be noted, too, that to some extent, rural and unserved communities in many, if not most, developing countries, share these disadvantages. Lessons and best practices can thus be shared between and among them.

• Facilitating voice communications at low costs (Voice of Internet Protocol, VoIP), or even simple email, are therefore particularly useful.

• Community-based networking initiatives designed to increase awareness and use of ICTs, and to encourage their use by local populations and in schools are increasing. For example, community radio is also a useful application in Kothmale, Sri Lanka, where community radio and Internet connectivity have been brought together to help the radio station meet the information needs of its listeners.

III. Overview: ICT for SMEs

How important are SMEs collectively to your country? What and how much do they collectively contribute – in terms of employment, revenue, and overall development?

The information revolution has transformed the way modern business is conducted, as ICTs have enabled people to exchange large amounts of information quickly, reliably and cheaply. Success is now determined by those who can best receive, process, and innovate.

As previously stated, ICTs can spur growth, create jobs for the poor, improve market access, contribute to income generation and enhance rural productivity. The economic contribution of ICTs is two-fold - income generation and poverty reduction. ICTs enable people and enterprises to capture economic opportunities with a view to increasing process efficiency, promoting participation in expanded economic networks and creating opportunities for employment.

ICTs can enable solution-sharing among local people and communities, providing access to practical information on matters such as small-sized business accounting, weather trends or best farming practices. In addition, they can facilitate global connectivity, resulting in new ways of creating and delivering products and services on a global scale; and provide developing countries with access to new markets and new sources of competitive advantage to boost income growth.

ICT can also enhance the key role that SMEs play in national economic development strategies by facilitating flows of information, capital, ideas, people and products. A strong SME sector that is integrated into the global digital economy can lead to job creation, increased public revenue and a general rise in the standard of living. In addition, the uses of ICT to enable SMEs to participate in the knowledge economy offers enormous opportunities to narrow social and economic inequalities and thus help achieve broader development goals.

A. Benefits of ICT to SMEs

For SMEs in particular, the use of ICTs can provide several significant benefits, among them:

• 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, whether locally or globally.

Concrete examples of how ICTs can benefit SMEs, include the following:

• Improve inventory management systems;

• Decrease wastage in production processes;

• Improve communication between different departments within the firm;

• Improve accounting and budgeting practices;

• Reduce communication costs and geographic barriers with global suppliers and clients;

• Expand client base through e-marketing (e.g., web sites, portals and mailing lists);

  • Link to local and global supply chains and outsourcing opportunities;

• Share and learn new business practices;

• Facilitate capacity-building of owners and employees through e-learning platforms;

• Simplify government services such as business registration and filing taxes;

• Introduce new methods of payment through e-commerce.

Simply put, Internet and e-commerce enable SMEs to gain access to new customers and to expand their markets geographically, even if they physically have to remain in local and regional markets because of lack of information and marketing capability. Through their web sites, SMEs can attract potential investors and customers by providing information on their technologies, products, services and financial positions. Moreover, the Internet can help knowledge-based small businesses convey their ideas to the whole world, allowing even micro-enterprises with ideas and technologies to remain small and profitable, or even to generate substantial global sales by exploiting their intellectual property over the Internet.

B. Barriers to SME Access and Use of ICTs

Despite the benefits, numerous barriers exist that make it difficult and challenging for SMEs to embrace these new technologies.

1. Unsuitability for Business. SMEs may not see the relevance or suitability of ICT to their businesses. This was the leading reason given by businesses for not engaging in e-commerce as found by a survey conducted by OECD in 2002 of SMEs with fewer than 250 employees in 19 European countries. Many may believe that their goods or services do not lend themselves to Internet transactions.

   SMEs will not take advantage of e-business unless the benefits outweigh the costs and justify establishing and maintaining the e-commerce system.

   In many instances, they may find it more difficult, relative to larger firms, to find an e-business case applicable to them because of lack of time, information and knowledge. They may also wish to retain their current business model and avoid the risks associated with new investments and new business models.

   They may also be worried that existing customers will be turned off by the changes that they may institute.

2. Lack of ICT and Managerial Knowledge Internally. SMEs often lack the human technological resources needed for ICT and e-commerce, especially because they have to focus on day-to-day operations, and lack the time and extra resources necessary to understand the benefits of new technologies.

   Even if they are aware of the potential benefits of adopting ICT, they would still require know-how or qualified personnel.

   SMEs may also lack managerial understanding and skills for e-business. Successful integration of e-business often requires restructuring of business processes, or changes in organizational structures. Professional IT or e-business consultants could help, but SMEs may not have ready access to them because of their relatively high costs.

3. Costs of Developing and Maintaining e-Business Systems. SMEs are generally concerned about the costs of establishing and maintaining e-commerce systems since they often suffer from budget constraints and are less sure of the expected returns on such investments.

   Some SMEs cannot afford to adopt sophisticated ICT solutions (e.g., web sites with a secure environment allowing credit card transactions).

   Outsourcing webpage design and updating are optional, but the costs of such may be difficult for SMEs to contain.

   Logistics services, such as package collection and delivery, also matter. This is a real concern for small businesses, especially in remote districts where private package collection/delivery services may not be available at reasonable costs.

   Some items, such as software, music and books, could be delivered digitally, but it may not be feasible for an individual, business or customer with slow Internet connections, or small download capacities.

4. Network Infrastructure – Access. The availability of a wide range of Internet connections and other communications services, preferably at competitive prices, is very important to the extent that it allows small businesses to choose different and appropriate services according to their specific needs and expectations from on-line activities.

   The availability of broadband connections may affect SMEs’ decisions to adopt e-commerce. Broadband’s faster speeds improve overall online experiences for both individuals and businesses, encouraging them to explore more applications and spend more time online. In contrast, slow internet connections and data transfers discourage SME adoption of the Internet.

5. Building Security and Trust. Lesser-known SMEs are at a clear disadvantage in terms of buyer confidence when compared with large multinationals with highly recognizable brand names. Online clients view recognition of a brand or company name as an indicator of a firm’s credibility, just as they do offline. The inability to verify online sellers’ credentials ranks high among reasons for reluctance to buy online.

   A professional web site can help improve a firm’s image for large-scale B2B transactions.

   Moreover, consumers who use credit cards for online transactions are highly concerned about security, protection of credit-related information and secure systems. As more online clients demand secure transaction environments, SMEs are likely to face increasing costs for system protection and security measures.

   Other related barriers include payment uncertainties and contract, delivery and guarantee uncertainties.

   Privacy and legal protection for Internet purchases are also significant concerns, both for businesses and customers alike.

6. Legal Uncertainties. Legal uncertainties and conflicting regulatory environments for cross-border transactions may affect SMEs strongly. SMEs may be at risk of being sued in multiple jurisdictions under a number of inconsistent laws. But more generally, the lack of a satisfactory redress mechanism in the event of a dispute may strongly discourage both B2B and B2C online transactions.

C. General Status of Internet Use for Business Development

Although there are limited data and studies focused on the adoption of the Internet and e-commerce by firms in developing countries, and particularly SMEs, there is ample anecdotal and case study evidence that show that SMEs generally (especially those in urban centres) can easily use and be connected to the Internet – if they want to.

According to a 2004 Report on e-Commerce and Development by the United Nations Council on Trade and Development (UNCTAD), the main uses of the Internet for business purposes are exchanging email, accessing the World Wide Web for information or transactional purposes, or setting up a company web site, which would represent their main gateway to the Internet for both B2C and B2B transactions.

The challenge is to move SMEs to go beyond these first few basic steps, and to eventually move towards integrating ICTs in more sophisticated business applications as outlined above.

This is a major step for SMEs, especially in developing countries, because these would require management and technical skills and investments (as well as organizational changes) that they may not be able to afford or for which they may not have ready access.

D. The Role of Governments in Encouraging ICT Use by SMEs

The role of government is to create the enabling environment that will enable these benefits to flourish and be easily recognized.

“Creating an Enabling Environment” 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.

Public policy is the tool by which the government can help to create an environment and remove barriers for businesses to adopt ICT. The government should take the following steps to provide a supportive legal and regulatory environment for e-business (World Bank, 2005):

• Create appropriate environments for ICT access and use, such as liberalizing markets to expand and improve network infrastructure. Increase liberalization and competition in ICT markets to stimulate investment telecommunications, such as broadband access.

• Develop e-security policies and programmes and provide supportive legal and regulatory environments. The government should set up a regulatory framework for trust, security, enforcing authentication mechanisms and combating cyber crimes, which will encourage business use of ICT. Specific policies include low-cost online dispute resolution, e-security policies such as Public Key Infrastructure (PKI) and Computer Emergency Response Teams (CERTs).

• Enhance technological diffusion, and overcome market failures by launching e-government services and e-procurement programmes to contribute to promoting trust and security in online transactions.

• Provide and support ICT training for skill development. The government has a major role in providing basic ICT skills training, such as integration of ICT in school curriculum and conjunction with the private sector on the ICT demands of the sector.

Key policy directions in this respect should include the following:

1. Business Environment. As a basic requirement, a healthy business environment is fundamental for firms to thrive and benefit from ICTs. This includes:

   • A transparent, open and competitive business framework;

   • Clear, independent rule of law for all firms;

   • Easy set-up and dissolution of businesses;

   • Transparent, simple and accessible corporate regulations; and;

   • Equal and stable legal treatment for national and cross-border transactions.

   In other words, the government must develop and implement policies and regulations that will make it easy for people to set up businesses and remove barriers to help these businesses become more profitable and competitive.

2. Network Infrastructure and Broadband Deployment. Broadband connectivity is a key component in ICT development, adoption and use. It accelerates the contribution of ICTs to economic growth, facilitates innovation, and promotes efficiency, network effects and positive externalities. The development of broadband markets, efficient and innovative supply arrangements, and effective deployment and use of broadband services require policies that:

   • Promote effective competition and continue to stress liberalization in infrastructure, network services and applications across different technological platforms;

   • Encourage investment in new technological infrastructure, content and applications; and

   • Take a technology-neutral stance among competing and developing technologies to encourage interoperability, innovation and expand choices.

   Public financial assistance and other initiatives to expand coverage for under-served groups and remote areas could complement private investment where appropriate, provided it does not pre-empt private-sector initiative or inhibit competition.

   Regulatory Trust. SMEs have to be certain that the regulatory system will ensure and properly balance their security, privacy and consumer protection interests. Issues that need to be addressed could include:

   • Cyber crimes and cyber-security;

   • Spam;

   • Cross-border cooperation;

   • Presence of low-cost online dispute resolution mechanisms between firms, and between firms and consumers.

3. Content Development. The government and the private sector have key roles in facilitating content availability across all platforms and encouraging local development of new content, including content from public sources. This brings with it issues concerning intellectual property rights, which need to be balanced against public interests to promote creativity and innovation.

4. Human Capital Development and Skills Enhancement. Lack of ICT skills and business skills are widespread impediments to effective uptake once adoption decisions are made. Governments have major roles in providing basic ICT skills in compulsory schooling and an important role in conjunction with education institutions, business and individuals in providing the framework to encourage ICT skill formation at higher levels, in vocational training and in ongoing lifelong learning.

5. Information. Small firms may not have enough information regarding the benefits and costs of adoption of ICT. The private sector (e.g., business associations) and government must facilitate awareness and access to services that are available, as well as provide information on the benefits of adoption and use of ICT, for example, through case studies and real-world best practices.

6. e-Governance. Online provision of government information and services can increase the efficiency and coverage of public service delivery to small firms and act as a model user and standard-setter for ICT adoption by small firms. As a model user of broadband, the government can demonstrate the potential of broadband-based services and content, and provide demonstrations and “pull-through” mechanism for small firms. Government demand aggregation to provide services can help spread new services more widely. Education, general government information and services and the provision of government services to businesses and citizens can all potentially benefit from the use of new high-speed infrastructure and services, and should be given priority in government strategies.

   Particularly in relation to SMEs, the integration of e-government into business processes could assist SMEs in their efforts to embrace and integrate e-business. It could provide SMEs with an incentive to go online.

IV. A final point: the need for systematic and continuously updated data

Currently, there is no international database that provides comprehensive information on the use of ICTs by businesses in developing countries. Statistics can more easily be found for the developed countries. The Organization for Economic Cooperation and Development (OECD) and Eurostat have been compiling information on their respective member countries for a few years now.

On the other hand, for developing countries, only a few have started to collect ICT indicators through their respective statistical systems. However, the data collected are not always comparable across countries, or with those of developed nations.

There is, therefore, a need for collective action at the international level to coordinate the methodology and work towards a global database of ICT indicators.

From a country level, policymaking will benefit from systems that enable the collection of ICT indicators and that yield better knowledge about the adoption of the Internet and e-business in developing country firms, particularly SMEs.

For example, in 2001, The Asia Foundation carried out a project to survey the use of the Internet and e-commerce in four South-East Asian countries: Indonesia, the Philippines, Sri Lanka and Thailand. Obviously, the data could very well be dated by now, but for purposes of illustration, consider how observations (if properly backed by reliable data) could lead to better policy conclusions:

1.Observation: Neither cost nor technical ability (to use the Internet) was found to be the main barrier preventing SMEs from going online.

Policy conclusion: Subsidization to SMEs to encourage them to adopt ICTs, therefore, might not be necessary. Rather, governments should concentrate on the regulatory or legal changes, such as e-commerce legislation and deregulation of the telecommunications industry, to increase access outside the major cities.

2. Observation: The main perceived barrier for Internet uptake is very similar across companies from both developed and developing countries: lack of network security, and slow and/or unstable connections.

Policy conclusion: Clearly, these are areas where the government can and must take action. Legislation to promote network security and instil confidence in the same would be critical. Universal access strategies to enable SMEs in unserved or remote areas to obtain reliable, low cost connections (note that dial-up connections would often be sufficient) could be developed.

3. Observation: SMEs generally find it relatively easy to use PCs and then connect to the Internet to use email and set up web pages. However, the introduction of the Internet into their business activities (including e-commerce) does not follow easily, and larger companies are more likely to automate their business processes (and to do so earlier) than smaller companies. Note that some studies have found a positive relationship between profitability and the level of intensity of ICT tools, with firms using more advanced e-business tools achieving higher profitability.

Policy conclusion: While, as stated previously, SMEs would make investments if they thought it made business sense, making or encouraging SMEs to make the leap from simple (and low-cost) Internet use to building e-business systems fully integrated with customers and suppliers requires additional investments, as well as technical and managerial skills that the SMEs might not yet have. It also demands some competence in designing and implementing e-business strategies. There are areas where public and private agencies can support SMEs, through assistance for educational and training.

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