Less Than 7% Of SMEs Use Tech For Business, Report Reveals

A new International Finance Corporation-World Bank research has revealed that inspite of the numerous opportunities for success that access to the internet and technology provides for small businesses in Africa, less than seven per cent of microenterprises use technology for business.

The report, which was released on Thursday, indicated that economists at the World Bank analysed data from a survey of 3,325 microenterprises in seven countries , which includes, Ghana, Kenya, Mozambique, Nigeria, Senegal, South Africa, and Tanzania. 

According to the survey, microenterprises that used smartphones and computers “reported 2.8 times higher rates of productivity, six times higher sales levels, and 1.9 times the number of employees than non-users”.

The survey also showed that less than seven per cent of microenterprises said they used digital technologies for business.”

"71 per cent of respondents reported ‘no need’ for digital technologies. For instance, 35 per cent said these technologies were too expensive for them, especially after factoring in the cost of purchasing the products with monthly usage fees and related electricity costs. About the same share, 34 per cent, said that they did not know how to use the technologies, pointing to a digital skills gap to be bridged,” it stated.

Speaking on the factors responsible for the small share of businesses utilising smartphones and digital technology, the International Finance Corporation noted that 20 per cent of respondents cited lack of access to high-speed internet as a reason for not using digital technologies.

“This suggests that while access remains a problem, it may not be the overriding cause of the low use rates. For instance, the mobile and high-speed internet use rate among the general population, at 22 per cent of country populations averaged across Sub-Saharan Africa, is more than three times that of microenterprise,” it further stated.