10/27/2015

Internetgaphinderssmallfirmsinpoorcountries,studyshows:::DailyFTBeEmpowered

Tuesday Oct 27, 2015

(https://www.facebook.com/dailyft)
(https://twitter.com/ft_srilanka)
(http://www.ft.lk/rss)

HOME (HTTP://WWW.FT.LK/) / IT / TELECOM / TECH (HTTP://WWW.FT.LK/IT-TELECOM-TECH)/ INTERNET GAP

HINDERS SMALL FIRMS IN POOR COUNTRIES, STUDY SHOWS

Internet gap hinders small firms in poor countries,

study shows
0
Comments/

46

Views /Friday,16October201500:00

Astudyofsmallandmediumsizedbusinessesaroundtheworldhasfoundthatoneofthemain
reasonstheyunderperformespeciallyinpoorercountriesisthattheymaketoolittleuseofthe
Internet.
Smallandmediumsizedenterprises(SMEs)inBrazilarethreetimeslessproductivethanbigfirms
therewhilethoseinIndiaare10timeslessproductive.ThereportpublishedonWednesdaybythe
InternationalTradeCentre,ajointventureoftheWorldTradeOrganizationandtheUnitedNations,
aimedtofindoutwhy.
Itexamined38indicatorstogaugethenationalandbusinessenvironmentandfirmscapacityto
compete,connectandchange.Theyincludesuchmeasuresasmanagerialexperience,levelof
training,andexistenceofbankaccountsandauditedfinancialstatements.InIndonesia,only9.4%of
smallfirmswereusingemail,andonly4.2%hadtheirownwebsite.InBangladesh,thefigureswere
12.0%and6.0%respectively.
Indonesiaissurprising,itsoneofthefewcountrieswhereevenlargefirmsunderperformintheuseof
email,saidMarionJansen,theITCschiefeconomist.
ShesaidBangladeshwastryingtoestablishanexportpositionintheITbusiness,butitssmallfirms
werefarbehindintheuseofwebsitesandemails.
Thatsacountrythatmayaskitselfwhetheritssustainabletohaveanexportpositionwherethe
domesticmarketdoesntseemtobewelldeveloped.
Aswellasalackofconnectivity,manysmallfirmsinthepoorestcountrieswereheldbackbytheir
accesstofinance,andinsouthAsiatheyscoredpoorlyoninternationalqualitycertificationaswellas
onlowuseofemail.
SMEsaccountfornearly70%ofemployment.Theyemploydisproportionatenumbersofwomenand
youngpeopleandatlowerwagesthantheirlargerrivals,soimprovingtheirproductivityisseenasa
routetoeconomicdevelopment.LatinAmericaemergedasthemostentrepreneurialregion,withmore
than10%ofyoungpeoplestartinguptheirownbusinessesinmanycountries,buttheirambitionswere
hamperedbyweaknationalbusinessenvironments.

ITCexecutivedirectorAranchaGonzalezsaidthestudywhichwillbepublishedannuallywas
http://www.ft.lk/article/483617/Internetgaphinderssmallfirmsinpoorcountriesstudyshows

1/6

10/27/2015

Internetgaphinderssmallfirmsinpoorcountries,studyshows:::DailyFTBeEmpowered

ITCexecutivedirectorAranchaGonzalezsaidthestudywhichwillbepublishedannuallywas
intendedaspracticaltoolforgovernmentsandcompaniestoimprovetheirperformance.
TheanalysissuggeststhereisconsiderablepotentialforSMEstocatchup,thereportsaid.

ShareThisArticle

COMMENTS
0Comments
Recommend

DailyFT

Share

Login

SortbyNewest

Startthediscussion

Bethefirsttocomment.

WHAT'STHIS?

ALSOONDAILYFT

SLFPsaysnohybridcourtinUS
resolution

WBfunds$50mtoimplementEarly
ChildhoodDevelopmentproject

1comment5daysago

1comment4daysago

althusarAve!!Ave!!TheMinisterial

ssacreblieuItshouldbeabsolutely

Angle!!Somepeoplehavealltheluckin
theworld!!Notthewriter!!Justimagine
anMP

ensuredthatthismoneywouldbeallowed
tobetouchedbyanypoliticianortheirso

Noevidencetosupportsexualfavour
claims:SriLankaRedCross

ChosenmechanismwithinSL
Constitutionframework:President

2comments6daysago

1comment4daysago

VelaiuthapillaiRajandranWillnever

althusarThePhotoOpsseemtobe

cometolightwhentopisinvolved.Some
ofthesemaybeactsofGodbymen
createdby

promising!!Letushopeitisnotthe"Last
PictureShow"andconcludewith"smiles
all

Subscribe

FT Quick Guide

AddDisqustoyoursite

Privacy

http://www.ft.lk/article/483617/Internetgaphinderssmallfirmsinpoorcountriesstudyshows

2/6