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Thepurpose of this paper is to investigate the impact of InformationTechnology on SMEs in Nigeria economic growth. The investigationseeks to establish how far the use of Information technology (ICT)links to economic performance of SMEs. Recent haste in technologicaladvancement and a strong positive impact evidenced in otherdeveloping countries can no longer be ignored. Emphasis on theinfluence of information technology in SMEs operation is an issue ofgreat apprehension in the modern world to Scholars, entrepreneurs andpractitioners in economies like Nigeria’s. Therefore the impact ofinformation technology in Small Medium Enterprises performance is aworthy exploration in the current wave of Information Technologydiffusion in business operations.

Tocarry out the study, a multistage probability was used to select asample of 200 SMEs from a list of 4163 registered SMEs operating inAbuja in 2012. The study area was stratified in five axis locationsfrom where samples of SMEs were identified through simple randomprobability. Questionnaires were then administered to managers andowners of the identified SMEs. Data was analyzed using SPSS, andANOVA to get statistical information collected from the field. Thesedata were then summarized in findings and conclusion.

THEIMPACT OF INFORMATION COMMUNICATION TECHNOLOGY ON SMALL AND MEDIUMSIZE BUSINESS IN NIGERIA

Tableof Contents

1.1 Introduction 2

1.2 Purpose and Problem Statement 5

1.3 Research Questions 6

1.4 Research Hypothesis 6

1.5 Research Objectives 6

2.1 Small and Medium Enterprises (SMEs) 8

2.2 Information Communication Technology (ICT) and SMEs 8

2.3 Exploring the Impact of ICT on SME Productivity 11

3.1 Research Strategy 14

3.2 Data Collection Method 15

3.3 Sampling and Sampling Technique 15

3.4 Questionnaire Design 15

3.5 Limitations of Data Collection Method 16

3.6 Use of Statistical Tools 16

3.7 Limitations of Research Methodology 16

4.1 Data Analysis and Presentation 17

5.1. Recommendations 23

5.2 Conclusion 26

6.0 APPENDICES 27

APPENDIX 2 30

1.0CHAPTER: INTRODUCTION

    1. Introduction

Informationand communication technology and e-business provide variable benefitsto business organizations for different process and transactions.Adoption of IT applications can help reduce operation costs andimprove on general information and knowledge management, increasereliability and speed of transactions. IT is an effective tool forimproving internal and external communications, quality services andcustomer service (Idowu, et al. 2003, pg 75).

However,despites these enormous benefits associated to informationtechnology, rapid growth in the business operations is yet tomaterialize in business sales and purchases over the internet (Odior,&amp Banuso 2012 pg 299). Since the beginning of the new millenniume-commerce has significantly grown to an extent but in a small partof commerce industry. This trend is dismal in the small and mediumbusinesses which lag behind large corporation in the adoption ofinformation technology (Hausman, 2005, pg 774).

Forsmall business to adopt information technology and ecommerce, theirfocus must shift from fearing high cost of implementing IT tobenefits of the investments. It is the commercial output that shoulddrive adoption of information technology (Oladejo&amp Yinus 2013 pg 16).Beyond adoption of e-commerce, not all SMEs may level up with largecorporation in integrating e-commerce in their business as most SMEsare set in traditional structures but certain barriers impede theadoption of information technology (Kollberg, &amp Dreyer, 2006 pg34).

Lackof availability of IT competence within small business firms,internet support services, cross country regulatory and legal systemsimpedes information technology adoption in SMEs(World Development Report, 1999).Policies that will enhance use and implementation of e-commerce focuson creating infrastructural and a regulatory environment which willfoster information technology infusion and create fair businessenvironment (Lucchetti &amp Sterlacchin, 2004, pg 172). In mostdeveloped countries policies have been shifted from concentrating onconnectivity to enhancing more diffusion and moving towardse-business where broad policies for business environment are blendwith other policies such as IPRs(Bansal &amp Sharma 2006 pg 13).Many governments are moving towards policies that will enhance SMEsparticipation in the e-business through adoption of informationtechnology (Langdon, 2001 pg 6).

Inmany developed and fast developing nations SMEs have embraced andrecognized the positive impact of information technology through useof e-commerce, internet and computer terminals. In most cases allover the world, SMEs operates with minimal workforce in whom caseneed for facilities to make work easier is high and as such, most ofthese SMEs have at least one connected computer access (Love, etal 2001 pg 36).ICT is invaluable in innumerable ways applications of informationaltechnology enhance quicker communications within the firm or outsidesthereby enabling organizations to efficiently utilize theiroperational cost resources. Seamless sharing, transfer, storage anddocumentation of data have to great extent been made possible by theadvent information technology (Langdon, 2001 pg 65).

SophisticatedICT applications has been established such as Knowledge ManagementSystems KMS, EPR (enterprise Resource planning) to enable businessorganizations share, retrieve, store and use their acquiredknowledge. For instance, these ICT resources have enhanced massstorage of clients’ databases which give business mangerscorrespondence to client histories over time. Ecommerce and internethave great potential of reducing transactional costs reliability andspeed of transactions at inter firm level interactions (Hausman,2005, pg 774).

Furthermore,information technologies are touted to reduce inefficiencies thatresults from lack of coordination among firms participating in chaintransactions. In the operation of SMEs there is insufficient sharingof information from the managers to their employees due to dailytasks routines and as such to improve on clients’ responsiveness,feedbacks and information sharing to employees the SMEs can adopte-commerce tools (Hausman, 2005, pg 776).

Overalladopters of information a technology reap maximum benefits throughhigh speed of transactions, reliability and low transactional costs.Such benefits would be greater for the SMEs than large corporations.Through internet and e-commerce SMEs can be able to remain atregional and local markets in gaining new customers and expandingmarkets geographically. The seamless sharing of information canenable the small firms to competitively match the big organizations(Idowu, et al. 2003, pg 72)

Smallbusiness enterprises have had great impact on economic growth ofdeveloping countries in poverty reduction by creating employment. Thestrides made in the information technology have penetrated the SMEsoperations in numerous ways transforming business functions andpresenting new challenges to the small businesses(Oladejo, &amp Adereti, 2010 pg 13).Previously before emergence of Information technology equipments,most transactions were analogue and less sophisticated for instance,cash payment was the main mode when dealing with businesstransactions where payment is in small amounts (Latham, 2011, pg 56).With the advent of globalization and advancement in economy, cashlesseconomy has been accepted in many business transactions. In manyinstance, people no longer carry heavy cash as in traditional era.This has been made necessary by many factors among them highinsecurity related to carrying lots of cash and development inInformation technology (Kollberg, &amp Dreyer, 2006 pg 34).

Electroniccommunication and transaction equipments have transformed commercetransactions. Experiences from business practices in most parts ofthe world indicates that use of information technology providesbusiness organization with vast advantages such as improved businesstransaction relationships with clients and creditors, access tobusiness information, improved performance, efficiency and generalcost reduction among many others (Kropp &amp Zolin 2008 pg 17).Interestingly, Information Technology has brought about businesscompetition most large business firms have embraced informationtechnology to create a competitive advantage against theircompetitors unlike SMEs (Cosh, &amp Hughes 2000 pg 13). As such theinfluence and use of information technology in the Small MediumEnterprises performance is a worthy exploration in the current waveof Information Technology diffusion in business operations (WorldDevelopment Report, 1999, pp. 14).

InformationTechnology is used in many organizations in various ways range ofcomputerized technologies is now used in business organizationoperation to process, exchange, and store and share informationbetween organizations (Langdon, 2001 pg 8). Information Technology islinked to the use of services and equipments like laptops, internet,desktop computers, enterprise resource planning ERP, data storagesecurity, cloud computing among other aspects. Information Technologyinitiative began in the 1950 with the advent of electronic media andprint (Idowu, et al., 2003). During this time the governmentimplemented strict regulations in the sector to regulate use ofinformation technology. However, private sectors such ascommunication service companies, post and telegraph departmentsintegrated the use of IT in their operation. These corporations werein charge of domestic and external communication services in thecountry (Hausman, 2005, pg 780).

In1984, many companies merged and created NITEL which has rejuvenatedthe information technology sector through heavy investment (Ogunsola&amp Aboyade, 2005). In 2001, President Obassanjo administrationinitiated the national information technology development agency(NITDA) to take charge of implementing national policy on informationtechnology (Idowu, et al., 2003).The National agency mandate is notonly increasing internet penetration in Nigeria but also setting anational information technology expansion. To better evaluate theeffectiveness of the initiatives and other investments in theinformation technology field this paper focuses on exploring theimpact of information technology on the small and medium enterprisebusiness in Nigeria (Latham, 2011, pg 56).

1.2Purpose and Problem Statement

Thepurpose of this paper is to explore the impact of informationtechnology on the performance of Small and Medium Enterprises (SMEs)operation in Nigeria. The research paper attempts to investigate howfar the improvement of SMEs economic performance can be linked to theuse of Information technology (ICT). Recent haste in technologicaladvancement and a strong positive impact evidenced in otherdeveloping countries economic growth can no longer be ignored.Emphasis on the influence of information technology to SMEs operationperformance and productivity is an issue of great apprehension in themodern world to Scholars, entrepreneurs and practitioners ineconomies like Nigeria’s.

Inthe contemporarily world, ICT use in business productivity andperformance remains a challenge for SMEs due to low usage, ICT skillsilliteracy and general ignorance to the benefits attached to ICT usein SMEs in businesses. As such SMEs needs to integrate ICT in theirbusiness operations bridge the global ICT usage in the SMEs. There isno choice in change, it is inevitable and for ultimate survival,upgrading business functions and general business productivity SMEsneed to incorporate IT as part of business strategy. How far ICT canbenefit SMEs is a worthy exploration the impact on businessoperation performance has not had much research studies in Nigerian.Nigeria is in the process of gaining wider IT usage and as suchavailable research studies focused more on ICT usage in financial andICT investments sectors as opposed to SMEs. Therefore, focus of thisdissertation paper remains on investigating the impact of InformationTechnology in SMEs performance productivity in Nigerian growingeconomy

1.3Research Questions

Thispaper will investigate the answers for the following questions:

  • What is the influence of ICT in the operation performance of SMEs?

  • How does IT impact on SMEs operations growth?

  • Challenges and problems related to adoption and implementation of ICT in SMEs

1.4Research Hypothesis

Ahypothesis is a statement proposition is seeks to be tested throughempirical studies. It should be stated in the form of prediction ofassociation of two variables under study. A null hypothesis predictsthat there is no difference between the tested proposition and aparticular variable or proposing that there is no relationshipbetween two variables.

Nullhypothesis is denoted by symbol Ho, while the alternative hypothesisis denoted by H1. In most cases it is not possible to test thealternative hypothesis because of many variables but normally rearsearch studies seeks to prove a given proposition as true orotherwise based on the presumption of null hypothesis, This researchpaper will adopt a null hypothesis

Hypothesis1. Information Technology has not brought any significant impact inthe performance

ofSMEs in Nigeria

Hypothesis2. Information Technology has not brought any economic development inNigeria

Hypothesis3. The presence of IT is directly linked to increased number of SMEbusiness in the

Nigeria

1.5Research Objectives

  • To analyze the relationship between information technology and the performance of SMEs

  • To analyze the impact of IT on SMEs growth

  • To identify barriers related to IT adoption in SMEs

THEORETICALFRAMEWORK OF RESEARCH

2.0CHAPTER. LITERATURE REVIEW

CLARIFICATIONOF CONCEPTS

2.1Small and Medium Enterprises (SMEs)

Smalland Medium Enterprises are economic drivers and constitute majorityof business in developing countries. The effects SMEs have inenhancing economic growth in many countries by providing employmentand poverty reduction is very significant. The classification of abusiness enterprise as an SMEs depends on various premises but themain underlying criteria is on the bases of sales margin, investmentcapacity and employment creation which defines an enterprise aseither small or medium (Kollberg, &amp Dreyer, 2006 pg 37).

Literatureavailable in economics has various definitions of SMEs depending oncountry, context and author but the concept remains the same.Largely, categorization of SMEs depends on structure and ownershipforms in which case most SMEs are financed by owners, families orlimited partnerships (Akande, 2005 Kozak, 2007). As such theoperations of SMEs are narrow and are therefore seen as potentialinstruments of national economic growth in developing and developedcountries (Ovia, 2000 Ojo, 2004, pp. 47).

2.2Information Communication Technology (ICT) and SMEs

Fewstudies have been accomplished in the adoption of IT in SMEs in manydeveloping countries. Available studies in IT usage in Nigeriaindicate that poor infrastructure was cited as the main hindrance toICT integration in the SMEs (Cosh, A.D. and Hughes, A. 2000 Yeh etal, 2007 Lal 2007 Popoola 2010, pp. 89). Heavy reliance on foreignIT, weak IT implementation processes, legal and intentionalregulation in the ICT sectors have been major setbacks in theadoption of IT in business operations (Ovia, 2000, pp. 78). Evidentliterature indicates promising trends around the globe where ICTstudies have been embraced with government participation to enhanceadoption of IT in business operations. However, the trend indicateslow reciprocity in embracing IT by the SMEs (Adeosun, et al. 2009, pg53).

Theadvent of Information Technology as a new concept in the global worldhas in various ways changed the traditions of doing things in allsectors of economy government, commerce, farming, productionmanufacturing and in delivery of social services. Recent studies inIT reveal that IT use has been enviably been predisposed by need torespond to world dynamics (Oladejo &amp Adereti, 2010, pp. 57). Theproliferation and advancement in internet technology leading to costeffective communications globally has changed commerce industry. Thenew millennium witnessed great investment in the IT but there existlow observable effect within organizations ((Mahmood &amp Mann,2000, pp. 47).

Inthe Nigerian economy, cash is largely used in transactions it isestimated that almost 90% of funds are in circulation and the rest inthe financial sector. This is unlike developed countries where lessthan ten percent of cash is in circulation (Ovia 2002 and Ojo 2004,pp. 67). This indicates culture laden with ignorance, lack ofappreciation and consciousness to security in relation to embracingtechnology in transactions (Idowu, et al. 2003, pg 74).

Studieshave revealed that in developed nations, knowledge is more valuedthan other resources (World Development Report 1999). This has beenthe catalyst been advancement in IT usage in most developing anddeveloped countries. As such infusion of IT in business activities inthose countries was not phenomenon but a resultant of knowledgeimplementation to ease business operation practices (Langdon, 2001 pg12).

Inbroader sense, IT literacy and the right attitude have positivesignificant in adapting to use and application of IT in business. Inthe fast growing Asian countries, Information Technology is part andparcel of capturing business opportunities and significant effortsare implemented by the governments of these States to develop ITinfrastructure. To survive and flourish in the business environment,SMEs needs to embrace ICT, for effective operation in remote areas ofNigeria (Ogunsola, &amp Aboyade 2005 pg 13). Small business havebeen set up in the Nigerian cities as ` Business centers ` to provideIT services such as typing, photocopying, laminating, fax and callcenter calls SMEs Internet cafes are popular in Lagos foradvertising new products to clients. The Internet has opened new waysof conducting electronic transactions e-commerce. Internet enhancesan open learning and knowledge source for opportunities and valuablebusiness information (Adeosun, et al. 2009, pg 55).

Mobiletechnology has influenced operations of SMEs. Africa`s mobile phoneusage in the past five years has increasingly grown (Kelly &ampBiggs, 2007, pp. 37). With the introduction of mobile phones inNigeria in the beginning of new Millennium, SMEs has fastidiouslydeveloped. Mobile telecommunications have created opportunities forinformal enterprise operators who are unable to afford fixed-linetelephones, fax and Internet. Adeosun, et al. (2009 pg 67), assessedthe status of Internet usage in the SMEs in Ghana as at 33.3%. Thisis attributed to low levels of education (Robinson, 1999 pg 34).

Studiesindicate that adoption of information technology largely depends onthe human resource with knowledge of information technology. Evenwhen these personnel have know how on the use of informationtechnology more knowledge is required. Further arguments are that ifSMEs can afford accessible ICT services lack of expertise to mangesuch things is not an obstacle to decision regarding adoption ofe-commerce. However, internal capabilities matters because adoptionof information technology can not succeed without understanding ofe-commerce business model. Without internal technical capacity,relying on ICT support for business may be dangerous if there is nosupport services for system maintenance because of risks associatedwith virus and other system failures (Idowu, et al. 2003, pg 73).

Therefore,existence of local ICT is an important element for small businessespecially those operating in remote areas or emerging economieswhere ICT services are unavailable or costly. Managerialunderstanding of the importance of e-commerce may impede adoption ofinformation technology and such organizations require structuringtheir business organization and restructuring their business processto enhance successful e-commerce integration in the business(Kollberg, &amp Dreyer, 2006 pg 35).

Inmany developing countries, priority is developing networkinfrastructure and creating a competitive business environment andregulatory frameworks that can ensure affordable internet access. Insome cases internet access, demographics, cultural and regulatoryfactors are great determinants of ICT adoption (Oladejo, 2008 pg 34).Challenges to network infrastructure are high in SMEs compared tolarge organizations, less confidentiality levels about reliability onIT, and managerial loops. On security terms, SMEs face possible buyercredibility confidence unlike large corporations recognized by theirbrand names. As such SMEs clients inability to recognize onlinesellers credentials is a top reason why SMEs may go slow oninformation technology adoption (Irefin, et al. 2012 pg 5).

Inaddition is the security and protection issue related to clients’fear of sharing their credit cards information is transferred online.This may require SMEs adopt protection systems to protect theircustomers from such threats which means more cost incurring by theSMEs. Studies indicate that to most people using or relying one-commerce, security issues are barriers to IT use (Rupinder, 2012,pg 446).

Furthermore,lack of direct contact with the clients may create uncertainties incommerce on areas such as payment, contract, delivery and guaranteefor a transaction. For developing countries such as China, Brazil andSingapore, barriers to IT use are need for face to face interaction,concern over privacy, customers do not use technology, finding staffswith e-commerce expertise, cost of implementing e-commerce use, costof internet access, taxations of internet sales and inadequate legalprotection to internet purchases (Rupinder, 2012, pg 447). Legaluncertainties, regulatory environments may impede SMEs adoption ofe-commerce and information technology. There is no mechanism toenhance harmonization of cross border transactions and as such SMEsmay risk multiple jurisdictions for a number of inconsistent laws(Birchall, &amp Hammond 2009, pg 12).

2.3Exploring the Impact of ICT on SME Productivity

Scholarsagree that IT has great potentials in improvement of businessoperations but others offer diverse view. Information technology onSMEs productivity of has been a focal point of many intellectualdebates. Some Scholars portends that, information technologyfacilitates strategic management, communication, collaboration anddecision making within business organization (Adeosun, et al., 2009pg 54). IT enhances significant changes in the nature of businessoperations in addition to achieving business competiveness.

Ogunsola,&amp Aboyade (2005 pg 12), observes that application of theinformation technology in organizations minimizes operation cost andtherefore enhances small and medium enterprises to operateefficiently. Rastrick, &amp Corner, 2010, pg 25, supported thisargument in that, organizations achieves competitive advantage byutilizing advanced IT infrastructure this enhances marketing,customer attraction and better services or product quality.Therefore, implementation of information technology in operationsystem helps companies address their challenges in the competitivemarket IT improves business capabilities and competences (Stoneman,&amp Toivanen, 1997 pg 12).

Recentstudies on business productivity performances indicate that there arepositive accruals and effects of IT usage. However other researchersargues that, such positive accruals can only be realized overextended period of IT usage, while others contend that, it ispossible to reap performances benefits same in the same year IT usagehave been incorporated in the business (Cosh, &amp Hughes 2000 pg33). As such research studies on IT usage in business for longerperiod and shorter periods with respective business performance wouldbe more convincing(Ovia, 2010 pg 23).Conventional statistical measurements can not be solely relied uponto aggregately measure the impact of IT on SMEs performance and hencenon parametric analysis is more applicable (Mahmood and Man, 2008 pg25). Researchers stipulates that the only way to have a grasp on theclearer picture of IT impact on SMEs can only be possible throughanalysis of large data from various industries to have a leverage(Mahmood &amp Imam 2008 pg 24).

Despitethe many potential benefits of ICT and e-commerce, great debate hasbeen provoked as to whether adoption of these modern elements has anysignificance in the performance of business operations. As the debaterages on, one important aspect is that for use and investment in ICTneeds investment in relevant skills, innovation and organization,taking risks to bring potential benefits (Shiels, et al. 2003 pg 14).Unlike findings of many studies that propose that adoption ofinformation technology enhances market expansion, large organizationsalso expands to cover areas dominated by SMEs (Popoola,2010, pg 17).To implement information technological aspects in SMEs requiressubstantial costs in changing organization and trainings for staffs(Adeosun, et al. 2009, pg 53).

Whilemany findings give evidence of positive impact on use of ICT in SMEs,one study by a Canadian firm refutes these claims through its studywhich revealed that most of the businesses that shows highproductivity growth could be using advanced technologies. Confirmedsources indicate that business productity for firms using IT werehigh starting 1988 to 1997 than the non users (Rastrick, &ampCorner, 2010, pg 27). This is supported by OECD analysis that mostbusiness that has incorporated the use if IT and e-commerce showspositive impacts in terms of economic growth (Stoneman, &ampToivanen, 1997 pg 17).

Morestudies conducted in OECD countries reveal that the use of IT helpsto reduce inefficiency related to use of capital and labor and thatthe more customers are connected through network the great the spillover (Love, etal 2001 pg 33).However, complimentary skills, innovation, organizational change arekey towards positive impact as well as other changes in investment,without these significant impacts of ICT on business may be limited(Rastrick, &amp Corner, 2010, pg 23).

Indeveloped countries, mainly the early adopters of IT are now movingtowards e -business integration sophisticated uses of ICT inbusiness process and complex technologies are been used. Externalrelation with customers have been enhanced thereby making functionssuch as marketing, customers service, sales, logistics, after salesservices and supply chain management a click away through the use ofIT (Ovia,2010 pg 23).For most SMEs they are still at the stage of establishing andadopting e-commerce as the main issue. Smaller firms have fewerincentives to enhance integration of business processes than bigfirms since such information technological integration are complexand require adverse usage of resources which are meager in SMEs(Shiels, et al. 2003 pg 14).

2.4Challenges to IT use by SMEs

Largebusinesses have enough resources to create effective IT for theirbusiness operations unlike the SMEs where limited manpower andfinancial capacity is a barrier in the adoption of IT. Lack of ITskills in the SMEs is another major challenge in the use of IT forSMEs in developing and developed countries (Brynjolfsson, E and Hitt,L.M. 2000, pp. 34). In addition, business type, industry andorganization structure could be other factors behind low usage andexploitation of IT in SMEs (Shiels et al. 2003, pp. 46). Ovia, (2000,pp. 45), argues that internal and external factors also impede ITintegration in SMEs for developing countries. These internal barriersare return and cost of inverstment, owrner or business mangercharacteristics, organization characteristics. External barriers mayby cultural, social, political, legal, and regulatory andinfrastructure. Other common barriers include unsuitability to thebusiness, security and trust factors (Irefin, et al. 2012 pg 6).

SMEscan use enabling factors such as, internal ICT and managerialknowledge, lower cost of adoption and installation, creating anetwork infrastructure for accessibility and interoperability,building security and trust and creating legal framework foroperation (Imam, 2001 pg 10). According to recent surveys, many SMEs,which has less than 250 employees in European countries indicatesthat only 40% do not use internet in selling and buying transactionsbecause they consider use of such means unsuitable for their type ofbusiness(Popoola, 2010, pg 14).This figure is higher in most developing countries for the samereason. In some instances the business may adopt the use of IT butthe problem may be clients’ access to the same leading to concernover unbalanced costs and benefits (Rupinder, 2012, pg 446).

Moreover,particular sectors such as constructions are reluctant to embraceinternet usage and e-commerce as they term it unsuitable for theirbusiness(Oladejo &amp Yinus 2013 pg 12).These concerns are varied as most SMEs operate on costs benefitanalysis before justifying the use of and e-commerce (Liedholm &ampMead 1987 pg 12). Further studies indicate that the reason why mostof these SMEs may be slow in adopting information technology is dueto failure to find e-business applicable to them due to lack of time,knowledge and information and as such they seek to retain theirstatus quo in the business to avoid risks associated with venturinginto new investments and business models (Shiels, et al. 2003 pg 16).Strong customer links physically and lack of competition may limitthis business from adopting new business models in their business asthis might threaten their existing transactions channels (Irefin, etal. 2012 pg 7).

3.0CHAPTER THREE RESEARCH METHODOLOGY

3.1Research Strategy

Inorder to capture a holistic perspective on the impact of IT on SMEsin Nigeria, the research was designed in a cross-sectional survey forthe Study area based on location and commercial localization of SMEsin Abuja Nigeria. Abuja been commercial part of Nigeria with manySMEs operating in the commercial, suburban and rural parts of thetown was an ideal location to carry out this study. In this location200 SMEs were mapped out in 5 zones to include different SMEs withdifferent characteristics such as number of employees ranging from2-20 for the bakeries, artisans and printing businesses. In the fivezones 40 SMEs were identified, 200 questionnaires were used to coverthe study. Questionnaires were the main instrument of study amongother research forms like qualitative studies to get more insight onthe study topic.

Inthis study, the research method was appropriate for assessing theimpact of the information technology on the small and mediumenterprises in Nigeria. In line with the research questions, researchobjective and the data collected, research method used a positivistperspective in terms of measuring impacts of the informationtechnology on small and medium enterprises in Nigeria. In addition,the research method incorporated a combined –mixed design (CMD)that aims to facilitate a holistic view of the question and reinforcethe reliability of the research technique used.

Thecombined –mixed design model test the impact of IT on SMEs inNigeria by using specific factors such as productivity, customersatisfaction, global competiveness and cost reduction. The mainobjective of this research project is to assess the impact ofinformation technology on the Small and Medium enterprises in Nigeriain the context of business organization competitiveness in theirability to effectively use IT tools.

3.2Data Collection Method

Questionnaireswere designed to cover the study in which 200 questionnaires weredistributed to 200 SMEs owners and managers and National Associationof Small and Medium scale Enterprises members (NASMEs). Thesequestionnaires had questions related to SMEs operations and the ITstructure in their businesses.

Lookingat the research design it was more useful to combine case studieswith survey in order to make a cross analysis of the two sources ofdata’s. This was to provide a clear understanding on the mainquestion of assessing the impact of the information technology onSMEs in Nigeria. Apart from questionnaire, the survey was used tocollect qualitative data in terms of views and suggestions from SMEsmanagers the employees on the operation of the enterprises in linewith adoption of IT. The combination of quantitative and qualitativedata was to enhance cross analysis of the impact of informationtechnology on the Nigerian’s small and medium enterprises.

3.3Sampling and Sampling Technique

Multistageprobability was used to select a sample of 200 SMEs from a list of4163 registered SMEs operating in Abuja in 2012. Sampling techniqueused was multistage where the study area was stratified in five axislocations from where samples of SMEs were identified through simplerandom probability process.

3.4Questionnaire Design

Thequestionnaire consisted of closed and open ended structured questionsrelated to IT use and SMEs operations. In some questions a likertrange of 1-5 (1=strongly agree &amp5=strongly disagree) scale wasused. Some questions targeted information related to the impact ofthe information technology on the SMEs in areas such as productivity,global competiveness, customer satisfaction and cost reduction.

3.5Limitations of Data Collection Method

Thisstudy took place in Nigeria the research strategy used in datacollection faced great limitations for lack of respondents’knowledge. The small and medium enterprise sector officials wereunwilling to cooperate in answering our questions correctly. Datacollection through questionnaires was a major constraint as mostpeople feared revealing details regarding their business strategies.Other challenges related to data collection were the distance betweenNigeria data collection area and Malaysia where I attend school,thereby making data collection method costly. In addition, the timedifference between the two countries interfered with directinteractions with necessary officials in gathering data on the impactof information technology on management strategies for small andmedium enterprises in Nigeria.

3.6Use of Statistical Tools

Datacollected was coded and then analyzed through a frequency table withnon parametric test chi square was used to test the formulatedhypothesis using the STATA 10 data analysis package. Data collectedwas coded and analyzed using statistical package for Social Sciences(SPSS) to generate statistical results. This analysis tool isimportant in giving cumulative frequency distribution tables andenhances flexibility in data analysis for such as analysis ofvariance (ANOVA).

3.7Limitations of Research Methodology

Unavailabilityof data this study encountered this problem due unwillingrespondents and access to organizations officials for the survey.Timeand money another limitation to the study was time, money andlogistics, limiting the geographic coverage study area. Unresponsiverespondents despite efforts to explain potential benefits ofresearch study some respondents were unwilling to cooperate. Thestudy faced a challenge from a number of respondent’s refusal tocomplete questionnaires.

4.0CHAPTER FOUR DATA ANALYSIS AND FINDING

4.1Data Analysis and Presentation

Atotal of 200 respondents comprising of 117 males and 83 females agedbetween 19 and 61 years were interviewed during the research. Most30.5% respondents were found to have been in SMEs businesses for atleast five years while 7.5% (15) had started business within thisyear. Majority of businesses (60.5%) are involved in trading ofmanufactured goods and raw materials (Fig 1). Only 14.0% (28) of thebusinesses were in production. Other SMEs incorporated trading,production and services. These SMEs deal with wine distillation,biscuit making, selling of auto spare parts, computer services andsachet water production.

Atotal of 126 (63.0%) of respondents do not use computers and internetin their business(Fig 5). Only 16.5% (33) of respondents usecomputers and internet in their businesses, four of which own morethan five computers.

Majorityof respondents (75.5%) confirmed that computer centers in the areawhere established to service the SMEs in the community (Fig 6)

Only12.5% of businesses surveyed made profits of at least one millionnaira (about US$6,400) per annum, the majority made profits ofbetween hundred thousand and one million naira per annum (Fig 3).

Impactof ICT on the performance of SMEs operation

Accordingto the statics data in table I, most respondents 70% of allrespondents agreed, 20% Disagreed, 10% were undecided when asked ifknowledge of IT was a determinant in sustaining economic growth. Fromthese findings it is imperative to note that knowledge in IT isconsidered an important aspect in economic sustainability in Nigeria.12. % of the respondents agreed that no significant link existbetween SMEs operation performances and IT, 33% disagreed and 20%were undecided. From the table, it is observable that majority ofrespondents 77% were of opinion that IT structure increases SMEsoperation performance in Nigeria, while 10.5% were undecided on theissue, 12.5% disagreed. When asked if IT knowledge improves SMEsperformance in Nigeria, large percentage of respondents 72% agreed,8% were undecided and 21% disagreed.

Thetable also illustrates that73% of the respondents agreed that IT isinfluential in enhancing growth of economy, 15% were undecided while13% disagreed with this motion. Further, 65% agreed that ITfacilitates SMEs improvement and poverty reduction in the nation, but17% were opposed and 18% undecided on this cause. This tabulationshows that majority of respondents acknowledges that IT improves SMEsoperation performance and a mechanism of poverty reduction at statelevel.

Furtherobservation of the figures indicates that to most respondents 70%, itis not easy to obtain information on business without IT knowledge,5% were undecided about this while 25% opposed the motion. 10% ofrespondents believe that IT does not have positive impact on SMEsperformance in Nigeria, 76% disagreed with this while 15% wereundecided. This shows that, IT has positive impact in Nigeriabusiness operation performances.

Moreanalysis indicates that majority, believe that IT will influencepoverty reduction 83.5%, while 10.5 disagreed and 6% were undecided.On personal satisfaction as a result of IT use in SMEs, 62% disagreedthat IT does not improve personal satisfaction, 13% agreed and 15%were undecided. This means that majority believes that IT enhancespersonal satisfaction to the entrepreneurs.

Furthermore,the table illustrates that, 12% agreed that lack of IT exposure inSMEs operations has no significant in poverty eradication in Nigeria,84% disagreed while 4% were undecided. This portrays that peoplebelieve that IT adoption by SMEs has positive elements of povertyeradication in Nigeria and therefore economic growth. Undersizedproportion of respondents agreed that IT structure is complex andhard to use in the SMEs operations 4.5%, while 78.5% disagreed withthese findings and 4.5% were undecided. This means that majority ofrespondents agreed that IT was not complex to use in SMEs. Lastly,majority of the respondents agreed that IT was expensive to adopt andincompatible with their business structure 49% agreed, 40% disagreedwhile 11% were undecided.

Table I: Responses on the impact of information technology onperformance of SMEs operation.

QUESTIONS

SA

A

D

SD

U

TOTAL

Does good knowledge of ICT serve as a determinant to sustainable economic development?

54%

16%

20%

10%

10%

100%

Is there significant relationship in SMEs performance and ICT?

10%

2.5%

33%

34.5%

20%

100%

Does Information Technology structure improve the

Performance of SMEs in Nigeria?

24%

52.5%

4%

8.5%

10.5%

100%

Do you think Information Technology exposure will

Improve performance of SMEs in Nigeria?

23%

49%

12.5%

8%

7.5%

100%

Does ICT have capacity to

develop the economy in a positive manner?

38%

34.5%

2.5%

10%

15%

100

Do you think ICT facilitates

Improvement of SMEs operation and help in poverty reduction to the Nation?

44%

21%

9%

8%

18%

100%

Information technology does not positively affect the performance of SMEs in Nigeria

5%

5%

51%

24%

14.5%

100%

Achievement of poverty eradication in

Nigeria will be positively influenced by IT

Adoption in SMEs?

55%

28.5%

6.5%

4%

6%

100%

Information technology does not help entrepreneurs to satisfaction in business operation

10%

13%

20%

42%

15%

100%

lack of IT knowledge in SMEs operation have no significant effect on achievement of

poverty eradication goals in Nigeria

5%

7%

17%

66.5%

4%

100%

IT structure is complex for SMEs operation and not easy to use in Nigeria

5.5%

23%

14.5%

64%

4.5%

100%

IT use is expensive and incompatible with my business

37.5%

11%

10%

30%

11%

100%

4.2FINDINGS SUMMARY

Fromthis study it was evident that majority of the respondents do not usecomputers and internet in their business, only a small percentage ofrespondents agreed to using computers and internet. This indicatesthat, IT diffusion and adoption by many SMEs stakeholders has notfound a strong footing in this sector despite the presence of ITinfrastructure faculties majority of respondents confirmed thatcomputer centers had been established in the area to serve SMEsoperations.

Thisrevelation indicates lack of capacity by SMEs to embrace IT, lack ofskills in IT, or general ignorance to the benefits associated with ITuse in SMEs. Few of businesses surveyed made high profits compared tothe rest many businesses which made low profits this could be in someway indicate the correlation of IT usage by the few businesses tohigh output compared to the low profits in the rest many businesswhich have not embraced IT in their operations.

However,majority from the study agreed that knowledge in IT is an importantaspect in economic growth sustainability in Nigeria. In additionmajority of respondents acknowledged that IT improves SMEs operationsperformance and a mechanism of poverty reduction at state level. Theyalso agreed that use of IT has positive impact in business operationperformances, entrepreneur satisfaction and that IT was not complexto use in SMEs.

Testingof hypothesis considering these findings we reject the nullhypothesis stated earlier (Ho Information Technology has nosignificant effect in the operation performance of SMEs in Nigeriaand we accept alternative hypothesis Information Technology hassignificant impact in SMEs operations in Nigeria.

5.0CHAPTER FIVE RECOMMENDATIONS AND CONCLUSION

5.1.Recommendations and Summary

Hypothesis

Result

Information Technology has brought significant impact in the performance of SMEs in Nigeria

YES

The presence of IT is directly linked with increased number of SME based business in the Nigeria.

NO

Information Technology has brought economic development in Nigeria

YES

The research findings support the existing theory in the field.

&nbspYES

Itis evident from the analyzed information that IT is significant inthe productivity and operations of SMEs in Nigerian economy. In mostcases, business organizations venture into operations for the solepurpose of maximizing returns, as such the adoption of IT is amilestone in enhancing more profitability in the business in Nigeria.Furthermore, the findings indicated that IT is necessary in reducingoperations activities and saving time. In the light of the abovefindings, SMEs need to embrace information Technology to cover upwith competition brought about by large business organizations.

Thiswill enable the SMEs have market competitiveness and thereby improvethe general economy in Nigeria. Another recommendation of SMEs isthat, they need to improve on the adoption of IT for networkingopportunities. This means cooperation from all stakeholders like theSMEs associations, intermediary organizations and public agencies toameliorate the deficiency existing in sources of information and tostrengthen international linkages from the regional and national hubsfor information. Most SMEs that can not afford to lay down anoperating IT infrastructure should consider using professional ITconsultancy advice and reasonable prices.

Accordingto this reaserch, emphasize on adoption of ICT by SMEs is important,however all stake holders need to address the factors that impedeproper IT use in SMEs. Its is evident that, though IT is perceived tobring positive aspects in the SMEs, most of these business lackskills in their workforce to use ICT, and in most cases the adoptiondepends on the owner and size of the enterprise. As such it isimperative for SMEs boost their workforce knowledge on ICT becauseknowledge in these areas is critical in decision making. In mostcases if the owner and the manager have low knowledge of ICT, theytend to use less sophisticated and basic ones. Limited resources andmanpower hinders adoption of ICT, most SMEs operates on small budgetsand employs less learned personnel’s who may not be apt in the useof IT.

Anotherimportant recommendation is that, external pressure can significantlyhelp the SME adopt ICT in their business operations. When externalpressure lacks from business trading partners or even customers thismay lead to low adoption of ICT by their owners. Therefore, thereshould be mechanism to create need for use of IT especially thesuppliers and the customers can demand their services be offeredthrough ICT platform. This would hasten easy adoption of ICT by theseSMEs. Likewise, if trading competitors in the same line of businesshave adopted IT this would lead to more influence in the race of ITadoption. Large companies with established IT infrastructure need toforce SMEs adopt information technology.

Nigeriangovernment has a great task in promoting and assisting SMEs in theadoption of ICT. A national framework needs to be created to enhanceaffordability particularly in the remote parts of the country.Government should offer incentives to foreign firms to invest in theInformation technology. In addition government needs to increaseawareness on ITC use through seminars or induction sessions whereSMEs can review ICT adoption in their business to increase morebenefitual impacts.

Moreoverthe government could establish a close monitoring link with the SMEswhere constant feedback is given on the use of the ITC in order toidentify problem areas and take possible amendments. Further to thisthe government can establish standardized, uniform and consistencypolicies in the SMEs sector, subsidiaries and agencies inimplementing ICT system. Though majority in the research did notadmit that ICT is a complex system, depending on the low rate ofadoption, and low information Technology knowledge keeping on theother factors constant, the government can enhance the availabilityof user friendly systems so that all users especially the old SMEs.Management of SMEs should give some formal pertaining on ICT to theirnew employees to enhance and reduce barriers associated with ITadoption.

Nigeria`ssmall and medium enterprises drive economic growth as a productivesector and anticipated growth in relation contribution of economicdevelopment in Nigeria. Challenges and problems of SMEs in Nigeriashould be effectively addressed through a multidimensional solutionagreed upon by related parties such Governments (Federal, State, andlocal), various departments, agencies and parastatals, banks,regulatory agencies, small and medium enterprises owners andmanagement, bilateral and multilateral agencies as well as donors.These agencies should provide the necessary support in the adoptionof ICT in the SMEs sector.

Governmentcan succeed in shaping the future of small and medium enterprises andadoption of ICT through reform programs in the education system tomake it more functional, relevant and need-oriented throughincorporation of ICT in the school curriculums. Invest and stress onthe importance of modern technology in development of Informationtechnology and business entrepreneurs. To make this feasible,effective and functional, the Government should set up Center (BIC),business information and business support center (BSC) incollaboration with national and local governments. BIC will providetraining and advice to entrepreneurs they may also serves ascustomer call centers for information, staffing, skills and knowledgedevelopment for industrial projects. Public service reform should beinitiated in the SME sector to enhance full realization of ICT goalin impacting Nigeria`s economic.

Overallto bring more positive impacts of information technology in the SMEs,there is need for a general framework of policies from the governmentin the creation of network infrastructure, creating an environmentwhere SMEs owners can assess benefits relative to costs, enhancingsecurity, confidence building and legal framework, ensuringcompletion and entry opportunities for other market players. Creationof E-government can be an important strategy towards demonstrating tothe SMEs the model through which they can adopt for servicesdelivery, enhancing awareness. This can help expand infrastructure,provision and use of (broadband) and this can contribute to promotingtrust and security on online transactions. The government can achievethis through introduction and authentication of digital signatures. This study confirmed the literature that IT adoption has manypositive aspects in SMEs in improving performance, efficiency andreducing operation cost.

Howevermany SMEs lack knowledge, time, resources to effectively utilize thistechnology. There are a number of ways these can be overcome in arealistic way. By creating awareness and business consultationawareness programs should be tailored to suit business situationssuch as market, industry and location. The awareness program shouldbe flexible to meet that changing needs of the SMEs over time.Training in IT is a basic element in today’s world, governmentshould aid in facilitating training programs. Internationalcooperation may also enhance easy adoption of technology in SMEs.When there is coordination and cooperation between countries and atmultinational level, they can help SMEs go digital by initiativepolicies such as technical assistance, ICT training and education andcreating IT infrastructure

5.2Conclusion

Thestudy concludes that information technology positively impacts on theperformance of SMEs operations in Nigeria. The results of hypothesistested showed that IT has important impact in the operationperformance of SMEs an overall economic growth in Nigeria. This studyis just an introductory part in line with understanding the impact ofICT in SMEs operations in Nigeria. This can be the starting point offurther studies on the ICT adoption and effects they have on SMEs inNigerian economy.

Futurestudies need to focus on larger sections of remote and morediversified samples to verify against these findings. To furtherstudy on the influence of ICT adoption in the SMEs, the TechnologyAcceptance Model could be used (TAM). Future research needs toexamine the causal factors behind SMEs perceptions in regard to ICTadoption. This study was aimed to focus on the impact of ICT on SMEsbut the findings leads us in understanding underlying factors behindIT use, rationale for not adopting IT by SMEs. However, the findingswere resourceful in providing insights on the need and urgency tosupport SMEs investments, in the development of IT to address theconcerns of these small businesses which are the backbone of Nigerianeconomy.

6.0APPENDICES

APPENDIX1

QUESTIONNAIRE

Pleasemention you Gender Male Female

Pleasespecify your age

20– 25 25 – 30 30 – 35 35 –40 40 – 45 45 – 50

50and more

Yourposition ………………………

1)Has Information Technology played a determinant role in theimprovement of the Nigerian’s small and medium enterprisesproductivity improvement?

1.Very important2. Important 3. Averages 4. Not important5. Not important at all

2)Please rate the level to which Information Technology has enhancedthe capability of small and medium enterprises in terms of production

1.2. 3. 4. 5.

*1.Lowest5. Best

3)How has your enterprise productivity evolved in the last 5 years?

1.Exponentially 2. Considerably3. Average4. No change5. Cannot tell

4)Please rate your Enterprise competiveness after implementinginformation technology in your business operation?

1.Very important2. Important 3. Averages 4. Not important5. Not important at all

5)Has e-commerce business model enhanced improvement of your businesscompetivenessin Nigeria? A.Yes B. No

6)Please rate the level of customer satisfaction of Enterprise inNigeria

1.Low 2. Fair3. Good 4. High5. Great

7)To what extent has Information Technology contributed to Enhancementof customer’s satisfaction?

1.Considerably2. Averages 3. No changes

8)Does a great level customer satisfaction depend on the implementationof information technology tools?

A.Yes B. No

9)To what level has the enterprise enhanced cost management in linewith Information technology?

  1. Low 2. Fair3. Average4. Great 5. High

10)Has the utilization of information technology optimized the operationcost your enterprises? A.Yes B. NO

11)

QUESTIONS

SA

A

D

SD

U

TOTAL

Does good knowledge of ICT serve as a determinant to sustainable economic development?

Is there significant relationship in SMEs performance and ICT?

Does Information Technology structure improve the

Performance of SMEs in Nigeria?

Do you think Information Technology exposure will

Improve performance of SMEs in Nigeria?

Does ICT have capacity to

develop the economy in a positive manner?

Do you think ICT facilitates

Improvement of SMEs operation and help in poverty reduction to the Nation?

Information technology does not positively affect the performance of SMEs in Nigeria

Achievement of poverty eradication in

Nigeria will be positively influenced by IT

Adoption in SMEs?

Information technology does not help entrepreneurs to satisfaction in business operation

lack of IT knowledge in SMEs operation have no significant effect on achievement of

poverty eradication goals in Nigeria

IT structure is complex for SMEs operation and not easy to use in Nigeria

IT use is expensive and incompatible with my business

APPENDIX2

RespondentAge

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

below 25

27

13.5

13.5

13.5

between 25-60

166

83.0

83.0

96.5

Above 60

7

3.5

3.5

100.0

Total

200

100.0

100.0

RespondentGender

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Male

117

58.5

58.5

58.5

Female

83

41.5

41.5

100.0

Total

200

100.0

100.0

Typeof Business

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

trading

121

60.5

60.5

60.5

production

28

14.0

14.0

74.5

service rendering

23

11.5

11.5

86.0

trading and production

13

6.5

6.5

92.5

trading and service rendering

7

3.5

3.5

96.0

production and service rendering

8

4.0

4.0

100.0

Total

200

100.0

100.0

Whenwas business started?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

this year

15

7.5

7.5

7.5

last year

51

25.5

25.5

33.0

3years ago

10

5.0

5.0

38.0

4 years

9

4.5

4.5

42.5

5years ago

61

30.5

30.5

73.0

over 5 years ago

54

27.0

27.0

100.0

Total

200

100.0

100.0

BusinessProfitability

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

very profitable

54

27.0

27.0

27.0

profitable

113

56.5

56.5

83.5

not profitable

29

14.5

14.5

98.0

4

2

1.0

1.0

99.0

5

2

1.0

1.0

100.0

Total

200

100.0

100.0

EstimatedAnnual Income

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

over 10million

5

2.5

2.5

2.5

over 1 million

20

10.0

10.0

12.5

less than 1 million but greater than 500thousand

81

40.5

40.5

53.0

less than 500thousand but greater than 100 thousand

75

37.5

37.5

90.5

100 thousand and below

19

9.5

9.5

100.0

Total

200

100.0

100.0

Numberof staff in the Business

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

less than 10

124

62.0

62.0

62.0

greater than 10

45

22.5

22.5

84.5

none

31

15.5

15.5

100.0

Total

200

100.0

100.0

Haveyou employed in the last year?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

126

63.0

64.3

64.3

no

70

35.0

35.7

100.0

Total

196

98.0

100.0

Missing

System

4

2.0

Total

200

100.0

Howmany new staff

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

less than 10

95

47.5

50.3

50.3

10 and above

31

15.5

16.4

66.7

None

63

31.5

33.3

100.0

Total

189

94.5

100.0

Missing

System

11

5.5

Total

200

100.0

Alliedbusinesses

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

0ne

66

33.0

34.4

34.4

two and above

86

43.0

44.8

79.2

None

40

20.0

20.8

100.0

Total

192

96.0

100.0

Missing

System

8

4.0

Total

200

100.0

Isthere business competition?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Yes

42

21.0

29.0

29.0

No

103

51.5

71.0

100.0

Total

145

72.5

100.0

Missing

System

55

27.5

Total

200

100.0

Howmany began business after you?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

One

43

21.5

81.1

81.1

two and above

10

5.0

18.9

100.0

Total

53

26.5

100.0

Missing

System

147

73.5

Total

200

100.0

Anyinfrastructure introduced to Nigeria becauseof small businesses

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

141

70.5

70.5

70.5

no

57

28.5

28.5

99.0

4

2

1.0

1.0

100.0

Total

200

100.0

100.0

Ifyes, what is the Infrastructure?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

road or bus stop

106

53.0

72.1

72.1

street light

15

7.5

10.2

82.3

housing projects

1

.5

.7

83.0

electricity

21

10.5

14.3

97.3

others

4

2.0

2.7

100.0

Total

147

73.5

100.0

Missing

System

53

26.5

Total

200

100.0

Doyou use computer and/or Internet?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

68

34.0

35.1

35.1

no

126

63.0

64.9

100.0

Total

194

97.0

100.0

Missing

System

6

3.0

Total

200

100.0

Ifyes, do you own your computer and/or internet?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

33

16.5

48.5

48.5

I own but it’s not connected

35

17.5

51.5

100.0

Total

68

34.0

100.0

Missing

System

132

66.0

Total

200

100.0

Ifyes, how many computers do you own?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

one

29

14.5

37.7

37.7

two to five

44

22.0

57.1

94.8

more than five

4

2.0

5.2

100.0

Total

77

38.5

100.0

Missing

System

123

61.5

Total

200

100.0

Ifyou do not own one do you patronize internet cafe/ computer centersaround

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

63

31.5

41.7

41.7

no

82

41.0

54.3

96.0

can`t tell

6

3.0

4.0

100.0

Total

151

75.5

100.0

Missing

System

49

24.5

Total

200

100.0

Werecomputer centers established in this area as a result of smallbusinesses?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

145

72.5

72.5

72.5

no

55

27.5

27.5

100.0

Total

200

100.0

100.0

Howmany banks service this Community?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

less than 20

8

4.0

4.0

4.0

more than 20

192

96.0

96.0

100.0

Total

200

100.0

100.0

Werethere many businesses when you started your business?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

48

24.0

25.8

25.8

no

138

69.0

74.2

100.0

Total

186

93.0

100.0

Missing

System

14

7.0

Total

200

100.0

Ifnot what is the estimate number of business then?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

less than 20

124

62.0

79.0

79.0

more than 20

33

16.5

21.0

100.0

Total

157

78.5

100.0

Missing

System

43

21.5

Total

200

100.0

Shouldgovernment encourage and create opportunities for small businesseselsewhere in the state through IT?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

yes

198

99.0

100.0

100.0

Missing

System

2

1.0

Total

200

100.0

Ifyes why?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

employment

155

77.5

80.7

80.7

employment and development

31

15.5

16.1

96.9

employment and crime reduction

6

3.0

3.1

100.0

Total

192

96.0

100.0

Missing

System

8

4.0

Total

200

100.0

Ifnot. Why?

Frequency

Percent

Missing

System

200

100.0

APPENDIXC: ANOVA

Type ofBusiness and Profitability of the business

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

9.710

5

1.942

3.838

.002

Within Groups

98.165

194

.506

Total

107.875

199

Age ofbusiness and Profitability of the business

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

13.857

5

2.771

5.718

.000

Within Groups

94.018

194

.485

Total

107.875

199

Profitabilityand estimated annual income

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

29.492

4

7.373

11.315

.000

Within Groups

127.063

195

.652

Total

156.555

199

Infrastructureintroduced to Nigeria because of smallbusinesses

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

15.619

4

3.905

19.259

.000

Within Groups

39.536

195

.203

Total

55.155

199

The useof computers and type of business

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

50.149

1

50.149

30.652

.000

Within Groups

314.124

192

1.636

Total

364.273

193

Profitabilityand number of banks?

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

3.822

4

.955

48.285

.000

Within Groups

3.858

195

.020

Total

7.680

199

Typeof business and number of banks that service this community?

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

.120

5

.024

.618

.686

Within Groups

7.560

194

.039

Total

7.680

199

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