Online community portals for small businesses

• Published: 2011
• Subjects: Small business; Information and communication technologies; Knowledge management
• Online Access: http://hdl.handle.net/10210/3905

M.A. === The first part of the study is a literature review which indicate that small, medium and micro enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth and equity. Modern economy is driven by innovations and knowledge. Transforming information resources into knowledge and maximise the value of knowledge is the new challenge in achieving a sustainable competitive advantage. Information resources are needed by small businesses as much as their larger counter parts but small businesses are usually in a disadvantaged position in terms of finance and expertise. Information and communication technologies (ICTs) offer small businesses new opportunities in the information economy. Exciting ICT applications such as Web portals provide platforms for business communities to share information and communicate more efficiently than ever. Such information resources enable small businesses to react faster and adapt better to the changing global market. The stimulation of SMMEs must be seen as part of an integrated strategy to develop the society to a higher level. The research findings of this study provide all stakeholders in small business development in South Africa including government, industries and academics a better understanding and practical guideline for delivering information resources to small business owners and managers and the design of information portals that can address the information needs of small businesses in South Africa. The empirical components that follow the literature review comprised a questionnaire survey. The survey focused on non-franchised small businesses in the retail industry in the greater Johannesburg metropolitan. A total of 150 questionnaires completed by small business owners and managers were used for statistic analysis in this research. The questionnaire consisted of four sections: business biographic information, business information and agencies, information and communication technologies usage, and community and portal activities. The survey results revealed valuable insights and trends in the use of ICTs and attitudes towards information sharing amongst small business owners and managers. Textile, clothing, footwear and leather goods were the most popular trade for the small businesses use in the survey. Nearly all respondents prefer English for business communication and the businesses are typically owner manager with a small number of employees. Infrastructure for ICTs is in place for small businesses, but the usage level is still basic. Short message service (SMS) and e-mail are the most commonly used ICT tools. Traditional media such as television, radio, newspapers and magazines remain the most important source of information for these small business owners and managers. Younger businesses adapt better to ICTs than the older businesses. Despite a mixed attitude towards sharing business information, small business owners and managers showed a high level of interest in networking with other businesses, in particular with potential customers and suppliers. Most respondents do not belong to any professional or industrial organisation primarily because they were not aware of these organisations. Based on the literature review and the empirical research, the final conclusion that was made from this research is that Web community information portals can, to a great extent, promote the use of information resources for small businesses in South Africa. The results from this research give a better understanding and are useful guidelines to stakeholders in small business development in South Africa.