2.4 D ETERMINANTS OF E NTREPRENEURSHIP WITHIN THE CONTEXT OF SME DEVELOPMENT
2.4.5 Research and Development (R&D) and Technology
The OECD encourages policy makers to give consideration to Research and Development (R&D) and technology which would include university and industry interface, technological cooperation between firms, technology diffusion and broadband access (Greene and Storey, 2010:377). Anon-Higon, Manjon-Antolin, Manez, Sanchis-Llopis (2015:362) point out that Research and Development (R&D) is one of the main drivers of firm’s performance and competitiveness. R & D is important for the development of small businesses and can give them a competitive advantage. To this end Zindiye et al. (2012:660) noted that the government of Zimbabwe has been encouraging such institutions as the Scientific, Industrial, Research and Development Centre (SIRDC) and the Centre for Innovation and Enterprise Development in Zimbabwe to strengthen their programmes to assist SMEs. The Small and Medium Enterprises Association of Zimbabwe (SMEAZ) (2011) emphasised the need for having researchers that can assist SMEs in their operations.
The importance of Information and Communication Technology (ICT) for small businesses is such that its adoption is no longer optional for growing SMEs but a prerequisite for competing well in markets (Dube, Chitura and Runyowa, 2010:2; Palacios-Marques, Soto-Acosta and Merigo, 2015:23). For small businesses to develop and expand their market they need the facilitation of ICT. This view is also held by Chinomona (2013:82) who argues that Information Technology (IT) connects the small business to its customers and other stakeholders, while also saving time and improving accuracy in the exchange of information about the company’s products and services. Technology is therefore important to small business development and hence the government should draft policies that ensure that SMEs realise these benefits.
Musikanzwa (2014:37) notes that the failure by SMEs to adequately account for their businesses rose from the lack of computerised accounting packages such as pastel. Therefore, access to technology would improve the accounting practices of small businesses.
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Low levels of Information and Communication Technology (ICT) utilisation among SMEs are caused by the lack of knowledge necessary to select the right technology rather than the high cost of equipment and software (Arendt, 2007:85; Salleh, Rohde and Green, 2016:3). Acquiring information on technology that is relevant to the operations of small businesses is therefore an important initiative that should be taken. Government can assist SMEs by putting in place ICT specialists that teach small business operators on the types of technology that can enhance their businesses. Mashanda (2012:13) and Palacios-Marques, Soto-Acosta and Merigo (2015:23) show that low levels of computer literacy in the owner or poor knowledge on how to use technology may result in a business being less likely to adopt e-commerce. Computer literacy is therefore important for the adoption of ICT among SME owners.
Additionally, Arendt (2007:85) is also of the view that the training policy and education system’s failure to adapt to the technological changes results to skills deficiency. Government therefore has to influence the education system and training policy to be more ICT oriented in an effort to increase the number of technologically savvy individuals who can assist in SMEs’ adoption of technology.
Mashanda in a study of the barriers to ICT adoption among SMEs in Zimbabwe found out that there is unreliable and poor connection due to the poor telecommunications and erratic power supply (Mashanda, 2012:15). In this case, therefore, the government has the responsibility of ensuring that the relevant infrastructure that facilitates ICT adoption is developed.
However, Esselar et al. (2007:92) in their research on ICT usage among SMEs in 13 African countries including Zimbabwe show that 45 percent of SMEs state that the reason that they do not have a computer with internet connection is that it is too expensive. Mushanda (2012:13) and Salleh, Rohde and Green (2016:2) argue that the nature and environment in which SMEs operate has a great impact on whether an organisation will adopt e-commerce services. In environments where internet connection is expensive, the likelihood of SMEs adopting ICT is low. Dube et al.
(2010:2) lamented about the slow rate of e-commerce adoption among small businesses which they attributed to the high cost of adoption.
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Information and Communication Technology (ICT) adoption is inhibited by poor physical infrastructure challenges including legal and regulatory issues, weak ICT strategies and lack of research and development (R & D) (Mashanda, 2012:11). There is an interconnection between ICT and research and development therefore policies that influence the two are important for the development of small businesses. Mashanda (2012:15) shows that there is an unreliable and poor internet connection due to poor telecommunications and erratic power supply in most developing countries. Even though SMEs are willing to adopt ICT, the existence of broad structural problems such as erratic power supply can act as an impediment. Addressing such problems would go a long way to improve the level of ICT adoption by SMEs.
Furthermore, Mpofu (2008:3) posits that ICT adoption in SMEs can be driven or inhibited by government intervention. Therefore, government should facilitate rather than hamper efforts to adopt ICT. According to Mashanda (2012:23) although Zimbabwe had the second fastest growing ICT sector in Sub-Saharan Africa but years of neglect have meant that the sector has lost adequate support despite the availability of policies crafted to support the industry. The challenges faced by Zimbabwe over the years have had adverse effects on the rate of ICT adoption. The ripple effects of the retardation of ICT have been on SMEs and their capacity to adopt ICT. According to Mavimbela and Dube (2016:1) an adoption of ICT would leapfrog SMEs to levels beyond survival but lead to sustainable businesses. Therefore, it is important to resolve the ICT problem in Zimbabwe to ensure such benefits.
Mpofu (2008:3) further argues that government’s primary role is to articulate vision and policy as these are the two development drivers for national ICT development initiatives to promote e- business among SMEs. The responsibility for facilitating ICT adoption therefore rests with the government as it has the capacity to influence policies that lead to the adoption of ICT. However, the government has failed to diffuse ICT across different sectors. Mpofu (2008:4) further argues that government, as the leader and facilitator in technology adoption by SMEs, should work with other stakeholders to leverage resources.
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