European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.20, 2012 152 The impact of Information and Communication Technologies (ICT) on Small and Medium Scale Enterprises (SMEs) in the Kumasi Metropolis, Ghana, West Africa Dr Charles Akomea-Bonsu, Frank Sampong 1 Centre for Entrepreneurship Research in Africa, Kumasi Polytechnic, P.O. Box 854, Kumasi Ghana-West Africa. 2. Assistant Registrar, Kumasi Polytechnic, Ghana, West Africa * E-mail of the corresponding author-akomeabev@yahoo.com Abstract This paper presents the results of a research carried out to learn about the impact of Information and Communication Technologies (ICT) on Small and Medium Scale Enterprises (SMEs) in the Kumasi metropolis. The study investigates the extent to which the increase in productivity of SMEs can be attributed to the implementation of ICT, the contribution of ICT in the growth of SMEs that has adopted it, whether the advent of the internet has changed the ways of businesses and if the use of the internet is essential in locating additional contracts and to expand the enterprises’ market. The study provides an insight on the barriers for the adoption of ICT. Data on these aspects of ICT was collected from 40 SMEs through a questionnaire instrument. The results of the study show that only a small number of SMEs in Kumasi are aware of the benefits of ICT adoption. Majority of the firms that use the internet mainly use it to locate customer and contracts, general business information, and e-mailing rather than sourcing for raw materials. Most of the SMEs have reported a positive performance and other benefits by utilizing ICT in their businesses. Lack of internal capabilities, lack of financial support, non – availability of infrastructure and personal reasons were the major barriers in adopting ICT. There is a need for more focus and concerted efforts on increasing awareness among SMEs on the benefits of ICT adoption. The results of the study recognize the need for more training facilities in ICT for SMEs, measures to provide ICT products and services at an affordable cost, and availability of free professional advice and consulting at reasonable cost to SMEs. Our findings therefore have important implication for policy aimed at ICT adoption and use by SMEs. Keywords: Information and communications technology (ICT), small and medium sized enterprises (SMEs), ICT adoption, ICT use, government policy 1. INTRODUCTION SMEs have played a key role in the economies of both developed and developing countries interms of turnover and level of employment. SMEs are often seen as the seeds foe a vital entrepreneurial economy, the majority of the Ghanaian workforce are employed by these SME,s. The role they play as a major source of innovation and growth has been emphasized in contemporary research (Bravnerhjelm, 2008). Research has also shown that firms that have been able to effectively utilize Information and Communication Technology (ICT) can provide small firms with a strategic advantage which can positively influence their competiveness. The adption of ICT can provide SMEs with valuable information, increase knowledge, improved performance, improve relationships with customers and suppliers, increase efficiency, reduce cost of production among others. Big businesses have taken the opportunity of ICT to gain the edge over their competitors unlike the small and medium enterprises. There is strong evidence that ICT is the driver for economic growth and government all over are driving SMEs to adopt ICT. 1.1 PROBLEM STATEMENT The recent increase in technological advancement has had strong impact on SMEs in other parts of the world including China and Brazil (James Manyinka et al, 2011). They came by as a result of conscious government efforts through the implementation of policies to make ICT available to SMEs. The government of Ghana is equally making such efforts by implementing policies to make the ICT sector more advanced. It has made the economy more attractive to attract investors in the telecommunication industry, television and radio and has made it easier to import computer related technologies into the country. brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by International Institute for Science, Technology and Education (IISTE): E-Journals