ABSTRACT
Globalisation and the revolution of information and communication technologies (ICTs) are expected to change the economic structure of nations. Any change in economic structure cannot be visible unless the noticeable technological changes are experienced in two major components of an economy—manufacturing sectors and service sectors. Small-sized and medium-sized enterprises (SMEs) are major constituents of an economy; the organisational and technological changes in these firms are expected to have a significant impact on national economies. Proponents of globalisation argue that it will open a window of opportunities for SMEs while networking capabilities of ICTs suggest that SMEs can augment their competitiveness in global markets. The positive link between SMEs and employment creation, poverty alleviation and economic growth is universally acknowledged. This chapter examines the level of ICT adoption by SMEs. It analyses the impact of ICTs in augmenting global competitiveness. The chapter reviews the historical background and economic contributions of SMEs.
