Internet Adoption by SMEs

Internet Adoption by SMEs

Adnan Kalkan, Chimuka M. Mulala, Hande Duz
DOI: 10.4018/978-1-7998-3045-0.ch002
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Abstract

Information technology resources are of great importance in making SMEs more effective and efficient. In this sense, SMEs should provide adequate IT training, design their processes according to IT, encourage their employees, search new technologies, compare themselves with their competitors in terms of technology usage, and should continuously plan their technology investments. When investing in new technologies, SMEs should pay attention to adaptability, flexibility, harmonization of IT, and strategies. Therefore, in this chapter, the usage level of IT (hardware, software, internet, communication tools, etc.) in SMEs is emphasized.
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Introduction

Small and medium-sized enterprises (SMEs) are very important for economies. They have a large potential source for jobs and economic growth. SMEs account for 99 percent of all enterprises and they have less than 250 employees. Although the number of scale-classes changes according to the activity under consideration, the main classes are defined according to number of employees. With these definitions; micro enterprises are defined as having less than 10 employees, small enterprises are defined as having 10-49 persons employed, medium-sized enterprises are defined as having 50-249 employees. Therefore, SMEs are defined as having 1-249 persons employed. Finally, large enterprises are defined as having 250 or more persons employed.

According to an official Turkish newspaper number 28457 “Definition of Small and Medium Sized About Qualifications and Classification Regulation Amending the Regulation” dated Nov. 4, 2012 “Definition of SMEs, Implementing and Amending the Regulation on Qualifications and Classification” SMEs are defined as enterprises that employ less than 250 people annually and whose annual net sales revenue or financial balance does not exceed 40 million TL (KSEP, 2015-2018, p.26). The definition of national SMEs is given in Table 1.

Table 1.
Definition of SMEs
Company CategoryStaff Headcount
(Employees)
Turnover or Balance Sheet Total
KSEP
(Employees)
European Commission
(Employees)
KSEP
(million TL)
European Commission
(million €)
KSEP
(million TL)
European Commission
(million €)
Medium-sized enterprises50-249<250£ 40£ € 50£ 40£ € 43
Small enterprises10-49<50£ 8£ € 10£ 8£ € 10
Micro enterprises<10<10£ 1£ € 2£ 1£ € 2

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