This 4-page e-note provides an overview of the policy considerations that are needed to promote information and communication technologies (ICTs) usage among small- and medium-sized enterprises (SMEs). It discusses critical components for a comprehensive policy and legislative strategy that would address the various policy, legal, market, technical and social considerations needed in order to create conditions conducive for encouraging ICT-enabled SMEs.

The article begins with a discussion of the potential benefits of ICT to SMEs, which are a major source of employment in many countries, and outlines reasons why governments should encourage them. Among these reasons: ICTs enhance SME efficiency, reduce costs, and broaden market reach - both locally and globally. However, according to the author, SMEs face several barriers preventing them from implementing or maintaining ICT business solutions.

These barriers include:

The author lists specific steps governments can take to promote ICT use by SMEs. The first recommendation is that governments engage in e-commerce, particularly with SMEs, since they are major purchasers. Second, governments can use ICT to provide efficient and more transparent service, including customs clearances to business licenses to dispute resolution mechanisms. Third, "public policy is the tool by which governments can help to create an environment, and remove barriers for businesses to adopt ICTs."


There are 8 key policy considerations, including:

In conclusion, SMEs play a major role in national economies; thus, governments have an interest in the promotion of access to and use of ICTs by SMEs.