SMEs in South Africa: Acceptance and Adoption of E-Commerce

Abstract

The chapter reports on research that was done in information systems at the University of Cape Town on the benefits of Internet utilisation and the barriers to its adoption amongst small businesses in South Africa. It addresses how these small businesses in a developing country perceive the potential benefits of e-commerce and look at their consequent adoption of e-commerce activities in their own organizations. Comparisons are made between studies conducted in first world countries, particularly regarding the role of government initiatives. A secondary aim of this research was to determine the current level of e-commerce adoption by small businesses in South Africa. This was achieved by circulating a questionnaire to test the perception of e-commerce benefits and e-commerce adoption levels amongst small businesses from various sectors in South Africa. If the global usage of the Internet for electronic commerce by small businesses is compared to the South African situation, this research clearly indicates that the available technologies are not adopted to the extent that is necessary for survival in a rapidly changing environment.