2.1.5.4 Information communication technology (ICT) and small
business.
Over the years, information communication technology has metamorphosed
from a luxury to a necessity. The need to survive and thrive in global
business has forced businesses even in remote areas of Nigeria to
embrace ICT. It is no longer new to see computers in shops and small
business holdings in the country. The common organization of small
business settings in Nigerian cities is to have business centres* which
are set up to render services such as typing, photocopy, lamination,
faxing as well as phone call centres. Cyber cafes commonly dot the
streets of Lagos, catering for the ever increasing need to meet new
clients and advertise merchandise. The contributions of ICTs to business
development according to Frempong (2007) have been pervasive to the
extent that it is becoming increasingly difficult for companies to
compete effectively in the world market without adequate ICT
infrastructures. The reason according to him is that ICTs are
revolutionising every activity in the global market, as the various
components of ICTs have their significant roles in facilitating business
promotion, efficiency and growth. Also according to UNCTAD report in
2005, business processes such as ordering, transaction, delivery,
inventory control and accounting can be streamlined and connected
regardless of location through the use of network of computers. The
internet has opened the way for electronic transactions (e-commerce)
which allows for low cost and open ended business (Humphrey et al.,
2003). Computers and the internet also open opportunities for learning
and obtaining knowledge about happenings world over as well valuable
business information. Mobile telephony technology has also greatly
affected small businesses positively. Africa’s mobile market has been
the fastest growing in the world in the last five years and has grown
twice as fast as the Global market (Kelly and Biggs, 2007). Since the
introduction of mobile phones in Nigeria earlier in the millennium,
small business which operate as call centres have been on the increase
and continue to grow with dynamism. The advent of mobile
telecommunications has created opportunities for operators in informal
business who hitherto could not afford fixed line Telephones, fax and
internet. Frimpong (2007) who assessed the level of usage of internet by
SMEs in Ghana recorded low level of internet usage (about 33.3%) in
companies classified as formal business and only one company was found
to have internet service at home. This could be linked to level of
education since about 50% of formal business owners had only secondary
education.